Royal Bank of Canada Lowers Ally Financial (NYSE:ALLY) Price Target to $40.00

Ally Financial (NYSE:ALLY) had its price target lowered by Royal Bank of Canada from $45.00 to $40.00 in a research report issued to clients and investors on Monday. The firm currently has an “outperform” rating on the financial services provider’s stock. Royal Bank of Canada’s target price indicates a potential upside of 26.56% from the company’s previous close. The firm anticipates consistent though seasonally-driven fundamental trends, with lower loans and volumes in the quarter, the analyst tells investors in a research note. RBC also expects stable credit trends, with improvement in year over year delinquencies for most names, warning however that Q1 loan loss provisions and reserve levels may reflect the recent more uncertain environment.

Other equities analysts have also recently issued research reports about the stock. BTIG Research cut shares of Ally Financial from a “neutral” rating to a “sell” rating and set a $30.00 price objective on the stock. in a research note on Tuesday, March 25th. Wells Fargo & Company upped their price target on Ally Financial from $32.00 to $34.00 and gave the company an “underweight” rating in a report on Thursday, January 23rd. The Goldman Sachs Group increased their price objective on Ally Financial from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Tuesday, April 1st. Truist Financial cut their target price on Ally Financial from $47.00 to $45.00 and set a “buy” rating on the stock in a research report on Friday, April 4th. Finally, StockNews.com downgraded Ally Financial from a “buy” rating to a “hold” rating in a report on Thursday, January 23rd. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and ten have assigned a buy rating to the company. According to data from MarketBeat, Ally Financial presently has an average rating of “Hold” and an average target price of $41.76.

Ally Financial Price Performance

Ally Financial stock traded down $0.57 during trading hours on Monday, hitting $31.61. 5,822,981 shares of the company traded hands, compared to its average volume of 3,544,746. Ally Financial has a 1-year low of $29.52 and a 1-year high of $45.46. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.51. The firm has a market cap of $9.71 billion, a P/E ratio of 12.16, a P/E/G ratio of 0.32 and a beta of 1.12. The firm’s 50-day simple moving average is $35.39 and its two-hundred day simple moving average is $36.22.

Ally Financial (NYSE:ALLY) last issued its quarterly earnings results on Thursday, April 17th. The financial services provider reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.53 by $0.05. Ally Financial had a return on equity of 9.31% and a net margin of 11.29%. During the same quarter in the previous year, the firm posted $0.45 EPS. As a group, analysts forecast that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Russell E. Hutchinson acquired 19,100 shares of the business’s stock in a transaction that occurred on Friday, January 24th. The shares were acquired at an average cost of $39.45 per share, with a total value of $753,495.00. Following the purchase, the chief financial officer now owns 202,845 shares of the company’s stock, valued at approximately $8,002,235.25. The trade was a 10.39 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Michael George Rhodes bought 25,634 shares of the firm’s stock in a transaction on Monday, January 27th. The shares were bought at an average cost of $39.09 per share, with a total value of $1,002,033.06. Following the transaction, the chief executive officer now directly owns 25,634 shares of the company’s stock, valued at approximately $1,002,033.06. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.67% of the company’s stock.

Institutional Trading of Ally Financial

A number of institutional investors and hedge funds have recently modified their holdings of the company. Tidal Investments LLC boosted its holdings in Ally Financial by 1.1% during the fourth quarter. Tidal Investments LLC now owns 26,279 shares of the financial services provider’s stock valued at $946,000 after acquiring an additional 280 shares during the period. EP Wealth Advisors LLC grew its holdings in Ally Financial by 4.9% in the 4th quarter. EP Wealth Advisors LLC now owns 6,367 shares of the financial services provider’s stock valued at $229,000 after buying an additional 297 shares during the last quarter. Meiji Yasuda Asset Management Co Ltd. lifted its holdings in shares of Ally Financial by 2.1% during the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 15,332 shares of the financial services provider’s stock worth $552,000 after buying an additional 320 shares during the last quarter. Signet Financial Management LLC boosted its position in shares of Ally Financial by 5.6% in the first quarter. Signet Financial Management LLC now owns 6,724 shares of the financial services provider’s stock valued at $245,000 after acquiring an additional 357 shares during the period. Finally, Lido Advisors LLC increased its position in Ally Financial by 5.9% during the fourth quarter. Lido Advisors LLC now owns 6,455 shares of the financial services provider’s stock worth $232,000 after acquiring an additional 359 shares during the period. 88.76% of the stock is currently owned by institutional investors and hedge funds.

About Ally Financial

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.