Evercore Cuts Ally Financial (NYSE:ALLY) Price Target to $51.00

Ally Financial (NYSE:ALLY) had its target price lowered by Evercore from $53.00 to $51.00 in a research report released on Thursday morning, Marketbeat reports. The firm currently has an outperform rating on the financial services provider’s stock.

A number of other equities analysts have also recently commented on ALLY. BTIG Research reiterated a “neutral” rating on shares of Ally Financial in a research report on Tuesday, January 6th. Weiss Ratings upgraded shares of Ally Financial from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, January 23rd. The Goldman Sachs Group reiterated a “neutral” rating and issued a $55.00 price objective on shares of Ally Financial in a report on Tuesday, January 6th. Barclays boosted their target price on Ally Financial from $44.00 to $54.00 and gave the company an “equal weight” rating in a research note on Monday, January 5th. Finally, Wells Fargo & Company upgraded Ally Financial from a “hold” rating to an “overweight” rating in a research report on Wednesday, December 17th. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Ally Financial currently has a consensus rating of “Moderate Buy” and an average price target of $50.31.

Ally Financial Stock Performance

NYSE:ALLY opened at $42.39 on Thursday. The business has a 50 day moving average of $44.02 and a 200 day moving average of $41.31. The company has a market capitalization of $13.06 billion, a price-to-earnings ratio of 18.04, a PEG ratio of 0.22 and a beta of 1.19. Ally Financial has a 1-year low of $29.52 and a 1-year high of $47.27. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.92 and a quick ratio of 0.92.

Ally Financial (NYSE:ALLY) last issued its quarterly earnings results on Wednesday, January 21st. The financial services provider reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.08. The business had revenue of $2.17 billion for the quarter, compared to analysts’ expectations of $2.15 billion. Ally Financial had a net margin of 10.77% and a return on equity of 10.40%. The business’s quarterly revenue was up 4.8% on a year-over-year basis. During the same period last year, the business earned $0.78 earnings per share. On average, sell-side analysts predict that Ally Financial will post 3.57 earnings per share for the current fiscal year.

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

Ally Financial Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Investors of record on Monday, February 2nd will be paid a $0.30 dividend. The ex-dividend date of this dividend is Monday, February 2nd. This represents a $1.20 annualized dividend and a dividend yield of 2.8%. Ally Financial’s dividend payout ratio (DPR) is presently 51.06%.

Insider Buying and Selling

In related news, CEO Michael George Rhodes acquired 23,800 shares of Ally Financial stock in a transaction on Friday, January 23rd. The shares were acquired at an average cost of $41.68 per share, with a total value of $991,984.00. Following the transaction, the chief executive officer owned 49,434 shares in the company, valued at $2,060,409.12. This trade represents a 92.85% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Russell E. Hutchinson acquired 11,566 shares of the firm’s stock in a transaction on Tuesday, January 27th. The stock was bought at an average price of $43.17 per share, with a total value of $499,304.22. Following the completion of the acquisition, the chief financial officer directly owned 225,336 shares in the company, valued at approximately $9,727,755.12. This represents a 5.41% increase in their position. The SEC filing for this purchase provides additional information. 0.67% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ally Financial

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Principle Wealth Partners LLC purchased a new stake in Ally Financial in the fourth quarter worth about $213,000. Axxcess Wealth Management LLC grew its holdings in shares of Ally Financial by 14.1% during the 4th quarter. Axxcess Wealth Management LLC now owns 7,124 shares of the financial services provider’s stock worth $323,000 after acquiring an additional 878 shares during the period. Global Retirement Partners LLC raised its position in shares of Ally Financial by 8,868.1% in the 4th quarter. Global Retirement Partners LLC now owns 12,107 shares of the financial services provider’s stock worth $548,000 after acquiring an additional 11,972 shares in the last quarter. Leonteq Securities AG purchased a new position in shares of Ally Financial in the 4th quarter valued at approximately $346,000. Finally, Covestor Ltd lifted its stake in shares of Ally Financial by 58.4% in the 4th quarter. Covestor Ltd now owns 2,200 shares of the financial services provider’s stock valued at $99,000 after purchasing an additional 811 shares during the period. Hedge funds and other institutional investors 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.