Analysts Set Ally Financial Inc. (NYSE:ALLY) Target Price at $50.31

Ally Financial Inc. (NYSE:ALLY) has been assigned a consensus recommendation of “Moderate Buy” from the seventeen research firms that are presently covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a hold recommendation and fourteen have issued a buy recommendation on the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $50.3125.

Several equities research analysts have weighed in on ALLY shares. Weiss Ratings upgraded shares of Ally Financial from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, January 23rd. Evercore reduced their target price on Ally Financial from $53.00 to $51.00 and set an “outperform” rating on the stock in a research report on Thursday, February 5th. Barclays raised their price target on Ally Financial from $44.00 to $54.00 and gave the stock an “equal weight” rating in a report on Monday, January 5th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $52.00 price objective on shares of Ally Financial in a research report on Monday, January 12th. Finally, TD Cowen reissued a “buy” rating on shares of Ally Financial in a research report on Thursday, January 8th.

Ally Financial Trading Down 0.1%

Shares of ALLY opened at $40.79 on Friday. Ally Financial has a fifty-two week low of $29.52 and a fifty-two week high of $47.27. The stock has a market capitalization of $12.57 billion, a PE ratio of 17.36, a P/E/G ratio of 0.21 and a beta of 1.19. The company’s fifty day moving average is $43.99 and its 200 day moving average is $41.43. 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 released its earnings results on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share (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 firm 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 business’s revenue was up 4.8% on a year-over-year basis. Sell-side analysts expect that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial declared that its Board of Directors has initiated a stock buyback plan on Wednesday, December 10th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 15.3% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Ally Financial Dividend Announcement

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

Insider Activity

In related news, CEO Michael George Rhodes purchased 23,800 shares of the firm’s stock in a transaction that occurred on Friday, January 23rd. The shares were purchased at an average cost of $41.68 per share, with a total value of $991,984.00. Following the purchase, the chief executive officer owned 49,434 shares of the company’s stock, valued at $2,060,409.12. This represents a 92.85% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Russell E. Hutchinson acquired 11,566 shares of the stock in a transaction that occurred on 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 completion of the acquisition, the chief financial officer owned 225,336 shares in the company, valued at $9,727,755.12. The trade was a 5.41% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ALLY. Chung Wu Investment Group LLC raised its position in shares of Ally Financial by 224.1% during the 3rd quarter. Chung Wu Investment Group LLC now owns 38,890 shares of the financial services provider’s stock worth $1,524,000 after purchasing an additional 26,890 shares during the last quarter. Norges Bank acquired a new stake in shares of Ally Financial during the second quarter valued at $95,897,000. Charles Schwab Investment Management Inc. boosted its stake in shares of Ally Financial by 3.1% during the second quarter. Charles Schwab Investment Management Inc. now owns 2,384,980 shares of the financial services provider’s stock valued at $92,895,000 after acquiring an additional 72,444 shares during the last quarter. Acadian Asset Management LLC increased its position in Ally Financial by 535.4% during the 2nd quarter. Acadian Asset Management LLC now owns 933,988 shares of the financial services provider’s stock worth $36,372,000 after purchasing an additional 786,985 shares in the last quarter. Finally, Principal Financial Group Inc. raised its stake in Ally Financial by 7.5% in the 3rd quarter. Principal Financial Group Inc. now owns 674,471 shares of the financial services provider’s stock valued at $26,439,000 after purchasing an additional 47,184 shares during 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.