Stock Traders Buy High Volume of Ally Financial Call Options (NYSE:ALLY)

Ally Financial Inc. (NYSE:ALLY) was the recipient of some unusual options trading activity on Monday. Traders acquired 33,357 call options on the stock. This represents an increase of approximately 640% compared to the typical volume of 4,507 call options.

Ally Financial Stock Up 0.9%

ALLY stock opened at $38.43 on Tuesday. The company’s 50 day moving average price is $42.50 and its 200 day moving average price is $41.72. The firm has a market capitalization of $11.88 billion, a price-to-earnings ratio of 16.35, a PEG ratio of 0.19 and a beta of 1.19. Ally Financial has a fifty-two week low of $29.52 and a fifty-two week high of $47.27. 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 posted its quarterly earnings results on Wednesday, January 21st. The financial services provider reported $1.09 EPS for the quarter, topping the consensus estimate of $1.01 by $0.08. Ally Financial had a net margin of 10.77% and a return on equity of 10.40%. The company had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.15 billion. During the same quarter in the previous year, the business posted $0.78 EPS. The firm’s revenue was up 4.8% on a year-over-year basis. On average, equities research analysts anticipate that Ally Financial will post 3.57 EPS for the current fiscal year.

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

Ally Financial Announces Dividend

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

Insider Buying and Selling

In other news, CFO Russell E. Hutchinson acquired 11,566 shares of the business’s stock in a transaction that occurred on Tuesday, January 27th. The shares were purchased at an average price of $43.17 per share, for a total transaction of $499,304.22. Following the acquisition, the chief financial officer owned 225,336 shares of the company’s stock, valued at $9,727,755.12. This represents a 5.41% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael George Rhodes acquired 23,800 shares of the business’s stock in a transaction that occurred 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 directly owned 49,434 shares in the company, valued at approximately $2,060,409.12. This trade represents a 92.85% increase in their position. The SEC filing for this purchase provides additional information. 0.56% of the stock is owned by insiders.

Institutional Investors Weigh In On Ally Financial

Institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP increased its stake in Ally Financial by 385.2% in 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 during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Ally Financial during the 4th quarter worth approximately $29,000. Mather Group LLC. purchased a new stake in shares of Ally Financial during the 3rd quarter worth approximately $31,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Ally Financial in the 4th quarter valued at $35,000. Finally, Safe Harbor Fiduciary LLC purchased a new position in shares of Ally Financial in the 4th quarter valued at $37,000. Hedge funds and other institutional investors own 88.76% of the company’s stock.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Evercore cut their price target on shares of Ally Financial from $53.00 to $51.00 and set an “outperform” rating on the stock in a research note on Thursday, February 5th. Morgan Stanley set a $53.00 price objective on shares of Ally Financial and gave the company an “overweight” rating in a report on Tuesday, December 16th. Royal Bank Of Canada reiterated an “outperform” rating and set a $52.00 target price on shares of Ally Financial in a report on Monday, January 12th. JPMorgan Chase & Co. raised their price target on shares of Ally Financial from $43.00 to $48.00 and gave the company an “overweight” rating in a research report on Monday, January 12th. Finally, Weiss Ratings downgraded shares of Ally Financial from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, February 26th. Thirteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $50.31.

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.