Ally Financial (NYSE:ALLY) Sees Large Volume Increase on Better-Than-Expected Earnings

Shares of Ally Financial Inc. (NYSE:ALLY) saw strong trading volume on Friday following a better than expected earnings announcement. 1,406,955 shares were traded during mid-day trading, a decline of 64% from the previous session’s volume of 3,935,096 shares.The stock last traded at $39.03 and had previously closed at $38.71.

The financial services provider reported $0.45 EPS for the quarter, topping the consensus estimate of $0.33 by $0.12. The firm had revenue of $1.99 billion during the quarter, compared to the consensus estimate of $1.96 billion. Ally Financial had a return on equity of 9.41% and a net margin of 12.42%. The business’s quarterly revenue was down 5.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.82 earnings per share.

Ally Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Wednesday, May 1st will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 3.07%. The ex-dividend date is Tuesday, April 30th. Ally Financial’s dividend payout ratio is currently 40.13%.

Analyst Upgrades and Downgrades

ALLY has been the subject of several recent research reports. Barclays upped their price objective on Ally Financial from $32.00 to $43.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 2nd. TheStreet raised shares of Ally Financial from a “c+” rating to a “b-” rating in a research report on Thursday, January 11th. Deutsche Bank Aktiengesellschaft initiated coverage on Ally Financial in a report on Wednesday, January 10th. They set a “buy” rating and a $47.00 price target on the stock. Compass Point increased their price target on Ally Financial from $28.00 to $37.00 and gave the stock a “neutral” rating in a report on Thursday, April 11th. Finally, JPMorgan Chase & Co. cut Ally Financial from a “neutral” rating to an “underweight” rating and increased their price target for the stock from $37.00 to $39.00 in a report on Wednesday, April 3rd. Four equities research analysts have rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $38.47.

Institutional Investors Weigh In On Ally Financial

Hedge funds and other institutional investors have recently modified their holdings of the stock. Salem Investment Counselors Inc. boosted its stake in Ally Financial by 115.0% in the first quarter. Salem Investment Counselors Inc. now owns 645 shares of the financial services provider’s stock worth $28,000 after buying an additional 345 shares in the last quarter. Rise Advisors LLC purchased a new stake in Ally Financial in the first quarter worth approximately $32,000. Northwest Financial Advisors purchased a new stake in shares of Ally Financial during the fourth quarter valued at approximately $31,000. Quarry LP boosted its stake in shares of Ally Financial by 165.7% during the fourth quarter. Quarry LP now owns 959 shares of the financial services provider’s stock valued at $33,000 after purchasing an additional 598 shares during the period. Finally, NBC Securities Inc. purchased a new stake in shares of Ally Financial during the third quarter valued at approximately $26,000. 88.76% of the stock is currently owned by institutional investors.

Ally Financial Stock Performance

The stock has a market cap of $11.88 billion, a PE ratio of 13.07, a price-to-earnings-growth ratio of 0.53 and a beta of 1.40. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.90 and a quick ratio of 0.90. The business has a 50 day moving average price of $37.71 and a two-hundred day moving average price of $32.92.

Ally Financial Company Profile

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.