Ally Financial (NYSE:ALLY) Given “Outperform” Rating at Royal Bank of Canada

Royal Bank of Canada reaffirmed their outperform rating on shares of Ally Financial (NYSE:ALLY) in a research note published on Monday morning,Benzinga reports. The brokerage currently has a $40.00 target price on the financial services provider’s stock.

Other equities analysts have also issued reports about the stock. Barclays increased their price objective on shares of Ally Financial from $36.00 to $44.00 and gave the company an “equal weight” rating in a report on Monday, January 6th. Truist Financial dropped their price objective on Ally Financial from $47.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 4th. Wells Fargo & Company decreased their target price on Ally Financial from $34.00 to $32.00 and set an “underweight” rating for the company in a research report on Monday. Morgan Stanley decreased their price objective on shares of Ally Financial from $45.00 to $39.00 and set an “outperform” rating for the company in a report on Monday, April 7th. For consumer lenders, the Trump Administration’s hardline approach to tariffs is “difficult to ignore” and there’s clearly more downside to the group if tariffs remain near current levels. If tariffs remain in place, risks to growth would skew meaningfully to the downside and risks to inflation to the upside, adds the analyst, who is downgrading the firm’s Consumer Finance industry view to Cautious from Attractive. Finally, Compass Point raised shares of Ally Financial from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $37.00 to $41.00 in a research report on Monday, April 7th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $41.94.

Ally Financial Price Performance

ALLY opened at $30.16 on Monday. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.93 and a quick ratio of 0.93. The company’s 50 day simple moving average is $35.00 and its 200-day simple moving average is $36.16. Ally Financial has a one year low of $29.52 and a one year high of $45.46. The stock has a market capitalization of $9.26 billion, a P/E ratio of 11.60, a price-to-earnings-growth ratio of 0.32 and a beta of 1.12.

Ally Financial (NYSE:ALLY) last released its earnings results on Thursday, April 17th. The financial services provider reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.15. The company had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $2.04 billion. Ally Financial had a return on equity of 9.31% and a net margin of 11.29%. During the same quarter in the previous year, the company posted $0.45 earnings per share. Sell-side analysts anticipate that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 15th. Investors of record on Thursday, May 1st will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 3.98%. The ex-dividend date is Thursday, May 1st. Ally Financial’s dividend payout ratio (DPR) is currently 88.24%.

Insider Transactions at Ally Financial

In other news, CEO Michael George Rhodes acquired 25,634 shares of the firm’s stock in a transaction dated Monday, January 27th. The stock was bought at an average price of $39.09 per share, with a total value of $1,002,033.06. Following the transaction, the chief executive officer now directly owns 25,634 shares in the company, valued at approximately $1,002,033.06. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Russell E. Hutchinson bought 19,100 shares of the company’s stock in a transaction dated Friday, January 24th. The stock was purchased at an average cost of $39.45 per share, for a total transaction of $753,495.00. Following the completion of the acquisition, the chief financial officer now owns 202,845 shares in the company, valued at $8,002,235.25. This trade represents a 10.39 % increase in their position. The disclosure for this purchase can be found here. Company insiders own 0.67% of the company’s stock.

Institutional Trading of Ally Financial

Several institutional investors and hedge funds have recently bought and sold shares of ALLY. Vanguard Group Inc. raised its stake in Ally Financial by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 28,252,149 shares of the financial services provider’s stock valued at $1,017,360,000 after acquiring an additional 111,231 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Ally Financial by 3.9% during the 4th quarter. Geode Capital Management LLC now owns 4,895,467 shares of the financial services provider’s stock worth $175,990,000 after buying an additional 184,278 shares during the period. First Manhattan CO. LLC. raised its holdings in Ally Financial by 4.8% in the 4th quarter. First Manhattan CO. LLC. now owns 4,226,639 shares of the financial services provider’s stock valued at $153,752,000 after acquiring an additional 192,295 shares during the period. Jacobs Levy Equity Management Inc. lifted its position in Ally Financial by 84.0% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 4,202,179 shares of the financial services provider’s stock worth $151,320,000 after acquiring an additional 1,918,965 shares during the last quarter. Finally, Northern Trust Corp boosted its holdings in shares of Ally Financial by 28.0% during the fourth quarter. Northern Trust Corp now owns 3,941,459 shares of the financial services provider’s stock worth $141,932,000 after acquiring an additional 863,052 shares during the period. Institutional investors own 88.76% of the company’s stock.

About Ally Financial

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.