Ally Financial Inc. (NYSE:ALLY) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of Ally Financial Inc. (NYSE:ALLY) have earned a consensus rating of “Moderate Buy” from the eighteen brokerages that are currently covering the stock, Marketbeat.com reports. Five equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating on the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $49.4375.

Several equities analysts have commented on the company. Wall Street Zen downgraded Ally Financial from a “buy” rating to a “hold” rating in a research report on Sunday, November 9th. Royal Bank Of Canada restated an “outperform” rating and issued a $52.00 price target on shares of Ally Financial in a research report on Monday, January 12th. Evercore ISI upgraded shares of Ally Financial from an “in-line” rating to an “outperform” rating and lifted their price target for the stock from $48.00 to $53.00 in a report on Tuesday, January 6th. Keefe, Bruyette & Woods cut their price objective on Ally Financial from $56.00 to $51.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 1st. Finally, Barclays upped their price objective on shares of Ally Financial from $44.00 to $54.00 and gave the company an “equal weight” rating in a research note on Monday, January 5th.

Insiders Place Their Bets

In other news, insider Kathleen L. Patterson sold 29,000 shares of the firm’s stock in a transaction on Wednesday, October 22nd. The stock was sold at an average price of $40.86, for a total transaction of $1,184,940.00. Following the completion of the sale, the insider directly owned 100,203 shares of the company’s stock, valued at $4,094,294.58. This trade represents a 22.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On Ally Financial

A number of hedge funds have recently modified their holdings of ALLY. Allworth Financial LP boosted its holdings in Ally Financial by 385.2% in the second quarter. Allworth Financial LP now owns 752 shares of the financial services provider’s stock worth $29,000 after purchasing an additional 597 shares during the last quarter. Mather Group LLC. bought a new position in Ally Financial in the 3rd quarter worth approximately $31,000. Hantz Financial Services Inc. lifted its stake in Ally Financial by 662.0% in the 2nd quarter. Hantz Financial Services Inc. now owns 823 shares of the financial services provider’s stock worth $32,000 after purchasing an additional 715 shares in the last quarter. Westside Investment Management Inc. boosted its stake in Ally Financial by 116.8% during the second quarter. Westside Investment Management Inc. now owns 837 shares of the financial services provider’s stock valued at $34,000 after buying an additional 451 shares during the last quarter. Finally, MAI Capital Management increased its position in Ally Financial by 45.1% in the second quarter. MAI Capital Management now owns 975 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 303 shares during the last quarter. Hedge funds and other institutional investors own 88.76% of the company’s stock.

Ally Financial Price Performance

NYSE:ALLY opened at $43.60 on Monday. Ally Financial has a 52 week low of $29.52 and a 52 week high of $47.27. The firm’s 50-day simple moving average is $43.12 and its 200 day simple moving average is $41.07. The firm has a market cap of $13.43 billion, a price-to-earnings ratio of 26.27, a P/E/G ratio of 0.21 and a beta of 1.17. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.92 and a current ratio of 0.92.

Ally Financial (NYSE:ALLY) last issued its quarterly earnings results on Friday, October 17th. The financial services provider reported $1.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.14. The business had revenue of $2.16 billion during the quarter, compared to analysts’ expectations of $2.12 billion. Ally Financial had a return on equity of 9.96% and a net margin of 8.10%.The firm’s revenue for the quarter was up 1.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.95 earnings per share. As a group, sell-side analysts predict that Ally Financial will post 3.57 earnings per share for the current year.

Ally Financial declared that its Board of Directors has initiated a stock repurchase program on Wednesday, December 10th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 15.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

About Ally Financial

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.