Ally Financial Inc. (NYSE:ALLY) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of Ally Financial Inc. (NYSE:ALLY) have received a consensus recommendation of “Moderate Buy” from the seventeen research firms that are currently covering the company, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and fourteen have given a buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $50.3125.

Several equities research analysts recently issued reports on ALLY shares. The Goldman Sachs Group reissued a “neutral” rating and set a $55.00 price target on shares of Ally Financial in a research report on Tuesday, January 6th. Royal Bank Of Canada reiterated an “outperform” rating and set a $52.00 target price on shares of Ally Financial in a research note on Monday, January 12th. Deutsche Bank Aktiengesellschaft increased their target price on shares of Ally Financial from $55.00 to $57.00 and gave the stock a “buy” rating in a report on Thursday, January 22nd. Truist Financial decreased their price target on shares of Ally Financial from $51.00 to $50.00 and set a “buy” rating for the company in a report on Monday, January 26th. Finally, Morgan Stanley set a $53.00 price objective on shares of Ally Financial and gave the company an “overweight” rating in a research report on Tuesday, December 16th.

Ally Financial Stock Performance

Shares of ALLY stock opened at $40.92 on Friday. The stock has a market capitalization of $12.60 billion, a price-to-earnings ratio of 17.41, a PEG ratio of 0.21 and a beta of 1.19. Ally Financial has a one year low of $29.52 and a one year high of $47.27. The company’s 50-day simple moving average is $44.02 and its 200-day simple moving average is $41.37. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.92 and a current ratio of 0.92.

Ally Financial (NYSE:ALLY) last announced its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.08. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The firm had revenue of $2.17 billion for the quarter, compared to analysts’ expectations of $2.15 billion. During the same quarter in the prior year, the firm posted $0.78 earnings per share. Ally Financial’s revenue for the quarter was up 4.8% compared to the same quarter last year. Equities analysts anticipate that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd will be issued a dividend of $0.30 per share. The ex-dividend date of this dividend is Monday, February 2nd. This represents a $1.20 annualized dividend and a dividend yield of 2.9%. Ally Financial’s dividend payout ratio is 51.06%.

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

Insider Activity at Ally Financial

In related news, CFO Russell E. Hutchinson purchased 11,566 shares of the business’s stock in a transaction that occurred on Tuesday, January 27th. The shares were acquired at an average price of $43.17 per share, with a total value of $499,304.22. Following the acquisition, the chief financial officer owned 225,336 shares in the company, valued at approximately $9,727,755.12. This trade represents a 5.41% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Michael George Rhodes bought 23,800 shares of the company’s stock in a transaction on Friday, January 23rd. The stock was bought at an average cost of $41.68 per share, for a total transaction of $991,984.00. Following the completion of the transaction, the chief executive officer directly owned 49,434 shares of the company’s stock, valued at $2,060,409.12. This trade represents a 92.85% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP raised its stake in shares of Ally Financial by 385.2% during the second quarter. Allworth Financial LP now owns 752 shares of the financial services provider’s stock valued at $29,000 after purchasing an additional 597 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Ally Financial in the fourth quarter worth approximately $29,000. Mather Group LLC. bought a new position in Ally Financial during the 3rd quarter valued at $31,000. Hantz Financial Services Inc. increased its position in shares of Ally Financial by 662.0% during the 2nd quarter. Hantz Financial Services Inc. now owns 823 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 715 shares during the period. Finally, Westside Investment Management Inc. raised its stake in shares of Ally Financial by 116.8% in the 2nd quarter. Westside Investment Management Inc. now owns 837 shares of the financial services provider’s stock worth $34,000 after buying an additional 451 shares in the last quarter. Institutional investors and hedge funds 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.