Ally Financial Target of Unusually High Options Trading (NYSE:ALLY)

Ally Financial Inc. (NYSE:ALLY) was the target of unusually large options trading activity on Monday. Investors 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.

Insider Transactions at Ally Financial

In related news, CFO Russell E. Hutchinson purchased 11,566 shares of the company’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 transaction, the chief financial officer directly owned 225,336 shares of the company’s stock, valued at approximately $9,727,755.12. The trade was a 5.41% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Michael George Rhodes acquired 23,800 shares of Ally Financial stock in a transaction on Friday, January 23rd. The shares were bought at an average cost of $41.68 per share, with a total value of $991,984.00. Following the completion of the purchase, the chief executive officer owned 49,434 shares in the company, valued at $2,060,409.12. The trade was a 92.85% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.56% of the company’s stock.

Institutional Trading of Ally Financial

Large investors have recently modified their holdings of the business. Allworth Financial LP grew its stake in Ally Financial by 385.2% in the 2nd quarter. Allworth Financial LP now owns 752 shares of the financial services provider’s stock worth $29,000 after acquiring an additional 597 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Ally Financial during the fourth quarter worth $29,000. Mather Group LLC. acquired a new stake in shares of Ally Financial during the third quarter worth $31,000. Fideuram Asset Management Ireland dac purchased a new stake in shares of Ally Financial in the fourth quarter valued at $35,000. Finally, Safe Harbor Fiduciary LLC purchased a new stake in shares of Ally Financial in the fourth quarter valued at $37,000. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on ALLY shares. Wells Fargo & Company upgraded shares of Ally Financial from a “hold” rating to an “overweight” rating in a research note on Wednesday, December 17th. Barclays raised their price objective on shares of Ally Financial from $44.00 to $54.00 and gave the company an “equal weight” rating in a research report on Monday, January 5th. Wall Street Zen lowered Ally Financial from a “buy” rating to a “hold” rating in a report on Sunday, November 9th. Royal Bank Of Canada reiterated an “outperform” rating and set a $52.00 target price on shares of Ally Financial in a research report on Monday, January 12th. Finally, BTIG Research reissued a “neutral” rating on shares of Ally Financial in a research note on Tuesday, January 6th. Thirteen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $50.31.

Ally Financial Price Performance

Shares of NYSE:ALLY traded up $0.44 on Monday, reaching $38.51. 2,779,828 shares of the company were exchanged, compared to its average volume of 3,842,783. The company has a 50-day moving average of $42.64 and a 200-day moving average of $41.72. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.30. The firm has a market cap of $11.90 billion, a price-to-earnings ratio of 16.38, a price-to-earnings-growth ratio of 0.19 and a beta of 1.19. Ally Financial has a 1-year low of $29.52 and a 1-year high of $47.27.

Ally Financial (NYSE:ALLY) last released its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 EPS 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 firm had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.15 billion. During the same quarter in the previous year, the firm earned $0.78 earnings per share. The firm’s revenue was up 4.8% on a year-over-year basis. Equities analysts forecast that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

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

Ally Financial declared that its Board of Directors has initiated a share repurchase 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 buy up to 15.3% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

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.