Citigroup Cuts Ally Financial (NYSE:ALLY) Price Target to $50.00

Ally Financial (NYSE:ALLY) had its price target lowered by Citigroup from $58.00 to $50.00 in a research note issued to investors on Friday morning,Benzinga reports. The firm currently has a buy rating on the financial services provider’s stock.

Other research analysts have also issued reports about the company. Bank of America upped their target price on Ally Financial from $52.00 to $53.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Truist Financial reduced their price target on Ally Financial from $51.00 to $50.00 and set a “buy” rating for the company in a report on Wednesday, September 23rd. Raymond James Financial assumed coverage on Ally Financial in a research note on Tuesday, September 1st. They issued a “strong-buy” rating and a $55.00 price target for the company. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $58.00 price objective on shares of Ally Financial in a report on Wednesday, July 22nd. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Ally Financial in a research report on Friday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $53.13.

Ally Financial Trading Up 0.1%

Ally Financial stock opened at $38.81 on Friday. Ally Financial has a 12 month low of $35.92 and a 12 month high of $47.29. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.26. The stock has a market cap of $11.81 billion, a P/E ratio of 9.15, a P/E/G ratio of 0.24 and a beta of 1.09. The company’s fifty day simple moving average is $42.73 and its 200-day simple moving average is $42.72.

Ally Financial (NYSE:ALLY) last announced its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by ($0.01). The firm had revenue of $2.28 billion for the quarter, compared to analysts’ expectations of $2.22 billion. Ally Financial had a return on equity of 11.75% and a net margin of 16.75%.Ally Financial’s revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.99 earnings per share. As a group, sell-side analysts forecast that Ally Financial will post 5.17 EPS for the current fiscal year.

Ally Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were given a $0.30 dividend. The ex-dividend date of this dividend was Friday, July 31st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.1%. Ally Financial’s payout ratio is currently 28.30%.

Insider Activity

In other news, insider Stephanie Richard sold 5,000 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $44.23, for a total transaction of $221,150.00. Following the completion of the sale, the insider owned 88,927 shares in the company, valued at approximately $3,933,241.21. This represents a 5.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.46% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in Ally Financial during the second quarter worth approximately $1,315,659,000. Berkshire Hathaway Inc acquired a new stake in shares of Ally Financial in the second quarter worth $1,240,650,000. Dimensional Fund Advisors LP lifted its stake 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 boosted its holdings in shares of Ally Financial by 7.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,071,504 shares of the financial services provider’s stock worth $274,978,000 after buying an additional 444,756 shares during the period. Finally, Geode Capital Management LLC boosted 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 worth $243,795,000 after buying an additional 241,000 shares during the period. 88.76% of the stock is owned by institutional investors.

Ally Financial Company Profile

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan. Through its subsidiaries, the company provides consumer and commercial financial products, with a primary focus on automotive financing and digital banking.

Ally’s automotive business offers retail installment sales contracts, consumer loans and leasing products through a network of automotive dealers. The company also provides dealer financing and related commercial lending services. Through Ally Bank, it offers deposit accounts, personal loans, mortgage products and other banking services, while Ally Invest provides self-directed investment and brokerage services to individuals.

The company serves customers primarily in the United States through digital platforms, dealer relationships and other distribution channels.