Brokerages Set Ally Financial Inc. (NYSE:ALLY) Target Price at $54.14

Shares of Ally Financial Inc. (NYSE:ALLY) have been given a consensus rating of “Moderate Buy” by the sixteen brokerages that are currently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and fourteen have issued a buy recommendation on the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $54.1429.

A number of equities analysts have recently weighed in on ALLY shares. Morgan Stanley upped their target price on Ally Financial from $53.00 to $55.00 and gave the company an “overweight” rating in a report on Monday, April 20th. Weiss Ratings cut shares of Ally Financial from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, May 26th. Barclays boosted their price objective on shares of Ally Financial from $54.00 to $56.00 and gave the company an “equal weight” rating in a research report on Monday, April 20th. The Goldman Sachs Group increased their target price on shares of Ally Financial from $50.00 to $56.00 and gave the stock a “buy” rating in a research report on Monday, April 20th. Finally, Truist Financial set a $54.00 target price on shares of Ally Financial in a research note on Tuesday, April 21st.

Insider Activity

In related news, insider Stephanie N. Richard sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $42.14, for a total transaction of $210,700.00. Following the transaction, the insider owned 93,927 shares of the company’s stock, valued at approximately $3,958,083.78. This trade represents a 5.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Douglas R. Timmerman sold 39,675 shares of Ally Financial stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $45.17, for a total transaction of $1,792,119.75. Following the completion of the sale, the insider owned 477,627 shares of the company’s stock, valued at $21,574,411.59. This trade represents a 7.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.46% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ALLY. Wellington Management Group LLP increased its position in 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 worth $646,347,000 after buying an additional 2,332,610 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Ally Financial by 3.6% in the first quarter. Dimensional Fund Advisors LP now owns 9,018,580 shares of the financial services provider’s stock worth $353,776,000 after buying an additional 309,638 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Ally Financial by 11.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 6,783,947 shares of the financial services provider’s stock worth $266,134,000 after buying an additional 712,443 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Ally Financial by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 5,381,838 shares of the financial services provider’s stock valued at $243,795,000 after acquiring an additional 241,000 shares during the last quarter. Finally, Thrivent Financial for Lutherans boosted its position in Ally Financial by 0.5% during the fourth quarter. Thrivent Financial for Lutherans now owns 3,867,023 shares of the financial services provider’s stock worth $175,137,000 after purchasing an additional 20,198 shares during the period. Institutional investors own 88.76% of the company’s stock.

Ally Financial Stock Performance

Shares of ALLY stock opened at $45.61 on Thursday. Ally Financial has a 1-year low of $35.92 and a 1-year high of $47.27. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 1.31. The company has a market capitalization of $13.98 billion, a price-to-earnings ratio of 11.13, a P/E/G ratio of 0.28 and a beta of 1.10. The stock’s fifty day simple moving average is $43.40 and its 200-day simple moving average is $42.50.

Ally Financial (NYSE:ALLY) last announced its quarterly earnings data on Friday, April 17th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.18. Ally Financial had a return on equity of 11.41% and a net margin of 16.47%.The firm had revenue of $2.18 billion during the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the prior year, the business earned $0.58 EPS. The business’s revenue for the quarter was up 36.4% on a year-over-year basis. On average, sell-side analysts predict that Ally Financial will post 5.28 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, May 1st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.6%. Ally Financial’s dividend payout ratio (DPR) is 29.27%.

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.