Ally Financial Inc. (NYSE:ALLY) Given Average Rating of “Moderate Buy” by Analysts

Ally Financial Inc. (NYSE:ALLY) has been given a consensus rating of “Moderate Buy” by the seventeen research firms that are currently covering the stock, Marketbeat.com reports. Four 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 issued a report on the stock in the last year is $50.3125.

Several equities analysts have issued reports on the stock. BTIG Research restated a “neutral” rating on shares of Ally Financial in a research report on Tuesday, January 6th. Truist Financial reduced their price objective on shares of Ally Financial from $51.00 to $50.00 and set a “buy” rating on the stock in a research note on Monday, January 26th. Weiss Ratings downgraded Ally Financial from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, February 26th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $52.00 target price on shares of Ally Financial in a research report on Monday, January 12th. Finally, Wells Fargo & Company raised Ally Financial from a “hold” rating to an “overweight” rating in a report on Wednesday, December 17th.

Ally Financial Stock Performance

Ally Financial stock opened at $38.43 on Tuesday. The business has a 50 day moving average of $42.50 and a 200-day moving average of $41.72. 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. The company has a market capitalization of $11.88 billion, a P/E ratio of 16.35, a P/E/G ratio of 0.19 and a beta of 1.19.

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

Ally Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Monday, February 2nd. Ally Financial’s dividend payout ratio (DPR) is 51.06%.

Ally Financial declared that its board has approved a share buyback program on Wednesday, December 10th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 15.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at Ally Financial

In other news, CEO Michael George Rhodes purchased 23,800 shares of the stock in a transaction on Friday, January 23rd. The stock was purchased at an average price of $41.68 per share, for a total transaction of $991,984.00. Following the acquisition, 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 filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Russell E. Hutchinson purchased 11,566 shares of the company’s stock in a transaction dated Tuesday, January 27th. The stock was purchased at an average price of $43.17 per share, for a total transaction of $499,304.22. Following the transaction, the chief financial officer directly owned 225,336 shares in the company, valued at approximately $9,727,755.12. This trade represents a 5.41% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Ally Financial

Large investors have recently modified their holdings of the company. Corient Private Wealth LLC raised its stake in Ally Financial by 47.0% during the fourth quarter. Corient Private Wealth LLC now owns 53,347 shares of the financial services provider’s stock worth $2,416,000 after buying an additional 17,047 shares during the last quarter. Hsbc Holdings PLC boosted its position in Ally Financial by 3.7% during the fourth quarter. Hsbc Holdings PLC now owns 59,551 shares of the financial services provider’s stock valued at $2,703,000 after acquiring an additional 2,140 shares during the last quarter. Kera Capital Partners Inc. bought a new stake in Ally Financial during the fourth quarter valued at $427,000. MV Capital Management Inc. acquired a new stake in Ally Financial during the 4th quarter worth about $78,000. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Ally Financial in the 4th quarter worth about $246,000. 88.76% of the stock is currently owned by institutional investors and hedge funds.

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.