Zacks Investment Research lowered shares of Ally Financial (NYSE:ALLY) from a strong-buy rating to a hold rating in a report issued on Tuesday morning.

According to Zacks, “Shares of Ally Financial have outperformed the industry over the past 12 months. The company also possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. The company’s initiatives to diversify revenue base will likely support profitability in the quarters ahead. Further, improving net interest margin (NIM), driven by higher rates and loan growth, is likely to aid top-line growth. However, persistently increasing expenses and high debt levels remain major concerns. Also, its significant focus on the auto segment might adversely impact profitability, if the auto industry faces deterioration.”

A number of other research firms also recently issued reports on ALLY. TheStreet raised Ally Financial from a c+ rating to a b- rating in a research report on Thursday, July 19th. Stephens reaffirmed a hold rating and issued a $32.00 target price on shares of Ally Financial in a research report on Friday, July 27th. Bank of America raised Ally Financial from a neutral rating to a buy rating and lifted their target price for the company from $33.00 to $35.00 in a research report on Monday, July 30th. Instinet began coverage on Ally Financial in a research report on Tuesday, June 19th. They issued a neutral rating and a $28.00 target price on the stock. Finally, ValuEngine downgraded Ally Financial from a buy rating to a hold rating in a research report on Friday, June 1st. Eight investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. Ally Financial has an average rating of Buy and an average price target of $32.75.

ALLY opened at $26.79 on Tuesday. Ally Financial has a 1 year low of $22.21 and a 1 year high of $31.29. The stock has a market capitalization of $11.24 billion, a price-to-earnings ratio of 11.21, a PEG ratio of 0.68 and a beta of 1.34. The company has a debt-to-equity ratio of 3.60, a quick ratio of 1.21 and a current ratio of 1.21.

Ally Financial (NYSE:ALLY) last released its earnings results on Thursday, July 26th. The financial services provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.71 by $0.12. The business had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.47 billion. Ally Financial had a return on equity of 9.45% and a net margin of 15.62%. During the same quarter in the previous year, the business earned $0.55 earnings per share. analysts expect that Ally Financial will post 3.09 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 15th. Shareholders of record on Wednesday, August 1st were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 2.24%. The ex-dividend date was Tuesday, July 31st. This is an increase from Ally Financial’s previous quarterly dividend of $0.13. Ally Financial’s payout ratio is 25.10%.

A number of hedge funds and other institutional investors have recently made changes to their positions in ALLY. BlackRock Inc. increased its position in Ally Financial by 8.8% during the second quarter. BlackRock Inc. now owns 26,537,339 shares of the financial services provider’s stock worth $697,136,000 after buying an additional 2,148,484 shares during the last quarter. Unigestion Holding SA acquired a new position in Ally Financial during the second quarter worth approximately $32,286,000. LSV Asset Management increased its position in Ally Financial by 32.6% during the second quarter. LSV Asset Management now owns 4,152,079 shares of the financial services provider’s stock worth $109,075,000 after buying an additional 1,021,238 shares during the last quarter. Janus Henderson Group PLC increased its position in Ally Financial by 86.2% during the second quarter. Janus Henderson Group PLC now owns 2,163,208 shares of the financial services provider’s stock worth $56,827,000 after buying an additional 1,001,501 shares during the last quarter. Finally, Platinum Investment Management Ltd. increased its position in Ally Financial by 26.5% during the first quarter. Platinum Investment Management Ltd. now owns 3,977,100 shares of the financial services provider’s stock worth $107,978,000 after buying an additional 834,200 shares during the last quarter. 98.97% of the stock is currently owned by hedge funds and other institutional investors.

About Ally Financial

Ally Financial Inc provides various financial products and services for consumers, businesses, automotive dealers, and corporate clients in the United States and Canada. The company operates Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.

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