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

Ally Financial Inc. (NYSE:ALLY) has been given an average recommendation of “Moderate Buy” by the seventeen ratings firms that are covering the firm, MarketBeat reports. Four equities research analysts have rated the stock with a hold recommendation and thirteen have assigned a buy recommendation to the company. The average 12-month price target among analysts that have covered the stock in the last year is $50.3125.

ALLY has been the subject of several research analyst reports. The Goldman Sachs Group reiterated a “neutral” rating and issued a $55.00 price objective on shares of Ally Financial in a report on Tuesday, January 6th. Morgan Stanley set a $53.00 target price on Ally Financial and gave the company an “overweight” rating in a research note on Tuesday, December 16th. Weiss Ratings lowered Ally Financial from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, February 26th. Royal Bank Of Canada reissued an “outperform” rating and set a $52.00 price objective on shares of Ally Financial in a research report on Monday, January 12th. Finally, BTIG Research restated a “neutral” rating on shares of Ally Financial in a report on Tuesday, January 6th.

Insider Buying and Selling

In other news, CEO Michael George Rhodes bought 23,800 shares of the firm’s stock in a transaction dated Friday, January 23rd. The stock was purchased at an average price of $41.68 per share, with a total value of $991,984.00. Following the transaction, the chief executive officer owned 49,434 shares of the company’s stock, valued at approximately $2,060,409.12. The trade was a 92.85% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Russell E. Hutchinson bought 11,566 shares of the stock in a transaction dated Tuesday, January 27th. The stock was purchased at an average price of $43.17 per share, with a total value of $499,304.22. Following the purchase, the chief financial officer owned 225,336 shares in the company, valued at $9,727,755.12. This trade represents a 5.41% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.67% of the stock is currently owned by corporate insiders.

Institutional Trading of Ally Financial

Hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank purchased a new stake in Ally Financial in the fourth quarter worth about $157,610,000. Wellington Management Group LLP lifted its holdings in shares of Ally Financial by 19.5% during the fourth quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider’s stock valued at $646,347,000 after purchasing an additional 2,332,610 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Ally Financial by 39.3% during the second quarter. Arrowstreet Capital Limited Partnership now owns 5,400,560 shares of the financial services provider’s stock valued at $210,352,000 after purchasing an additional 1,523,425 shares during the last quarter. Marshall Wace LLP bought a new stake in shares of Ally Financial in the 2nd quarter worth approximately $51,661,000. Finally, Qube Research & Technologies Ltd boosted its position in shares of Ally Financial by 8,255.7% in the 3rd quarter. Qube Research & Technologies Ltd now owns 1,230,384 shares of the financial services provider’s stock worth $48,231,000 after purchasing an additional 1,215,659 shares in the last quarter. 88.76% of the stock is owned by hedge funds and other institutional investors.

Ally Financial Price Performance

ALLY stock opened at $36.84 on Tuesday. The stock has a market capitalization of $11.39 billion, a price-to-earnings ratio of 15.68, a PEG ratio of 0.19 and a beta of 1.18. The firm’s 50-day moving average price is $41.99 and its two-hundred day moving average price is $41.63. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.30. Ally Financial has a 12-month low of $29.52 and a 12-month high of $47.27.

Ally Financial (NYSE:ALLY) last posted its earnings results on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share for the quarter, topping analysts’ consensus estimates 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 analyst estimates of $2.15 billion. During the same period in the prior year, the business posted $0.78 earnings per share. Ally Financial’s revenue for the quarter was up 4.8% on a year-over-year basis. As a group, equities analysts predict that Ally Financial will post 3.57 earnings per share for the current year.

Ally Financial announced that its board has authorized a stock buyback plan on Wednesday, December 10th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 15.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Ally Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Shareholders of record on Monday, February 2nd were issued a $0.30 dividend. The ex-dividend date was Monday, February 2nd. This represents a $1.20 annualized dividend and a yield of 3.3%. Ally Financial’s dividend payout ratio (DPR) is 51.06%.

About Ally Financial

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.