Ally Financial Inc. (NYSE:ALLY) Receives $51.67 Consensus Price Target from Analysts

Shares of Ally Financial Inc. (NYSE:ALLY) have earned an average rating of “Moderate Buy” from the seventeen ratings firms that are presently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a hold recommendation and thirteen have issued a buy recommendation on the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $51.6667.

ALLY has been the subject of a number of research reports. The Goldman Sachs Group reiterated a “neutral” rating and set a $55.00 target price on shares of Ally Financial in a research report on Tuesday, January 6th. Weiss Ratings downgraded shares of Ally Financial from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, February 26th. Barclays increased their price target on shares of Ally Financial from $44.00 to $54.00 and gave the stock an “equal weight” rating in a report on Monday, January 5th. Truist Financial lowered their price target on shares of Ally Financial from $51.00 to $50.00 and set a “buy” rating on the stock in a report on Monday, January 26th. Finally, Evercore lowered their price target on shares of Ally Financial from $53.00 to $51.00 and set an “outperform” rating on the stock in a report on Thursday, February 5th.

Ally Financial Price Performance

Shares of NYSE:ALLY opened at $40.29 on Friday. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.30. The firm has a market capitalization of $12.40 billion, a PE ratio of 17.14, a P/E/G ratio of 0.20 and a beta of 1.14. Ally Financial has a twelve month low of $29.52 and a twelve month high of $47.27. The company has a 50-day moving average price of $40.09 and a two-hundred day moving average price of $41.24.

Ally Financial (NYSE:ALLY) last issued 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. The firm had revenue of $2.17 billion during the quarter, compared to analyst estimates of $2.15 billion. Ally Financial had a net margin of 10.77% and a return on equity of 10.40%. The company’s quarterly revenue was up 4.8% on a year-over-year basis. During the same quarter last year, the business earned $0.78 earnings per share. Equities analysts forecast that Ally Financial will post 3.57 EPS for the current year.

Ally Financial announced that its Board of Directors has initiated a share repurchase program on Wednesday, December 10th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to purchase up to 15.3% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Ally Financial Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend was Monday, February 2nd. Ally Financial’s dividend payout ratio is presently 51.06%.

Insider Transactions at Ally Financial

In other news, CFO Russell E. Hutchinson purchased 11,566 shares of the stock in a transaction dated Tuesday, January 27th. The shares were purchased at an average cost of $43.17 per share, with a total value 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. This represents a 5.41% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Michael George Rhodes purchased 23,800 shares of the stock in a transaction dated Friday, January 23rd. The stock was purchased at an average cost of $41.68 per share, for a total transaction of $991,984.00. Following the completion of the acquisition, the chief executive officer owned 49,434 shares of the company’s stock, valued at approximately $2,060,409.12. This represents a 92.85% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.67% of the company’s stock.

Institutional Investors Weigh In On Ally Financial

Institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP raised its stake in Ally Financial by 19.5% in 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 in the last quarter. Dimensional Fund Advisors LP raised its stake in Ally Financial by 3.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 8,708,942 shares of the financial services provider’s stock valued at $394,432,000 after purchasing an additional 295,048 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Ally Financial by 7.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 6,071,504 shares of the financial services provider’s stock valued at $274,978,000 after purchasing an additional 444,756 shares in the last quarter. Geode Capital Management LLC raised its stake in Ally Financial by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 5,381,838 shares of the financial services provider’s stock valued at $243,795,000 after purchasing an additional 241,000 shares in the last quarter. Finally, Thrivent Financial for Lutherans raised its stake in Ally Financial by 0.5% in the fourth quarter. Thrivent Financial for Lutherans now owns 3,867,023 shares of the financial services provider’s stock valued at $175,137,000 after purchasing an additional 20,198 shares in the last quarter. 88.76% of the stock is owned by hedge funds and other institutional investors.

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.