Wall Street Zen Upgrades Ally Financial (NYSE:ALLY) to "Buy"

Key Points

• Wall Street Zen upgraded Ally Financial from hold to buy, adding to a broadly positive analyst outlook on the stock.
• Several other firms recently raised their price targets or reiterated bullish ratings, and Ally now has 14 Buy ratings versus 2 Hold ratings with a consensus Moderate Buy and average target price of $54.14.
• Ally Financial also reported better-than-expected quarterly results, posting $1.11 EPS versus $0.93 expected and revenue of $2.18 billion, while shares were trading around $44.19 on Monday.

Ally Financial (NYSE:ALLY - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Monday.

Several other research analysts have also commented on ALLY. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Ally Financial from $55.00 to $57.00 and gave the company a "buy" rating in a research note on Thursday, January 22nd. Morgan Stanley raised their price objective on shares of Ally Financial from $53.00 to $55.00 and gave the company an "overweight" rating in a research note on Monday, April 20th. The Goldman Sachs Group raised their target price on shares of Ally Financial from $50.00 to $56.00 and gave the company a "buy" rating in a report on Monday, April 20th. Truist Financial set a $54.00 target price on shares of Ally Financial in a report on Tuesday, April 21st. Finally, Evercore reaffirmed an "outperform" rating and issued a $54.00 target price on shares of Ally Financial in a report on Tuesday, April 21st. Fourteen research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Ally Financial presently has a consensus rating of "Moderate Buy" and an average target price of $54.14.

Ally Financial Trading Down 0.1%

NYSE ALLY opened at $44.19 on Monday. The firm has a 50 day simple moving average of $40.80 and a 200-day simple moving average of $41.77. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.93 and a current ratio of 0.93. Ally Financial has a one year low of $32.50 and a one year high of $47.27. The firm has a market cap of $13.54 billion, a price-to-earnings ratio of 10.78, a PEG ratio of 0.27 and a beta of 1.12.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings data on Friday, April 17th. The financial services provider reported $1.11 EPS for the quarter, beating the consensus estimate of $0.93 by $0.18. Ally Financial had a net margin of 16.47% and a return on equity of 11.41%. The business had revenue of $2.18 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter last year, the firm posted $0.58 earnings per share. The business's revenue for the quarter was up 36.4% compared to the same quarter last year. Equities research analysts anticipate that Ally Financial will post 5.3 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Douglas R. Timmerman sold 39,675 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $45.17, for a total value of $1,792,119.75. Following the sale, the insider owned 477,627 shares of the company's stock, valued at $21,574,411.59. This trade represents a 7.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.46% of the stock is currently owned by company insiders.

Institutional Trading of Ally Financial

Several hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in Ally Financial during the fourth quarter worth approximately $157,610,000. Wellington Management Group LLP raised its holdings in Ally Financial by 19.5% during the fourth quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider's stock worth $646,347,000 after purchasing an additional 2,332,610 shares in the last quarter. Qube Research & Technologies Ltd raised its holdings in Ally Financial by 8,255.7% during the third quarter. Qube Research & Technologies Ltd now owns 1,230,384 shares of the financial services provider's stock worth $48,231,000 after purchasing an additional 1,215,659 shares in the last quarter. Danica Pension Livsforsikringsaktieselskab acquired a new stake in Ally Financial during the third quarter worth approximately $45,733,000. Finally, Bank of America Corp DE raised its holdings in Ally Financial by 38.9% during the second quarter. Bank of America Corp DE now owns 3,771,190 shares of the financial services provider's stock worth $146,888,000 after purchasing an additional 1,056,060 shares in the last quarter. Institutional investors and hedge funds own 88.76% of the company's stock.

Ally Financial Company Profile

Ally Financial Inc is a leading digital financial services company headquartered in Detroit, Michigan. The company offers a comprehensive suite of banking, lending, and insurance products designed for retail and commercial customers. Through its online-only platform, Ally Bank provides checking and savings accounts, certificates of deposit, money market accounts, and home mortgages, emphasizing competitive rates and user-friendly mobile and web experiences.

In addition to its banking operations, Ally Financial is a major player in automotive financing and leasing.

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