Ally Financial Inc. (NYSE:ALLY) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Ally Financial Inc. (NYSE:ALLY) has been given an average rating of “Moderate Buy” by the seventeen ratings firms that are presently covering the firm, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating on the company. The average 12-month price target among brokers that have covered the stock in the last year is $50.3125.

Several equities analysts have weighed in on the company. Weiss Ratings raised Ally Financial from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, January 23rd. Barclays boosted 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. Evercore cut their target price on shares of Ally Financial from $53.00 to $51.00 and set an “outperform” rating for the company in a research report on Thursday, February 5th. Wall Street Zen downgraded shares of Ally Financial from a “buy” rating to a “hold” rating in a research note on Sunday, November 9th. Finally, 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.

Ally Financial Price Performance

Shares of NYSE:ALLY opened at $41.88 on Friday. The company’s fifty day moving average is $43.81 and its two-hundred day moving average is $41.49. The company has a market cap of $12.90 billion, a P/E ratio of 17.82, a price-to-earnings-growth ratio of 0.21 and a beta of 1.19. Ally Financial has a 12-month low of $29.52 and a 12-month high of $47.27. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.30.

Ally Financial (NYSE:ALLY) last issued its quarterly earnings results on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.08. The business had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.15 billion. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.Ally Financial’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.78 earnings per share. Equities analysts expect that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial declared that its Board of Directors has approved a stock buyback program on Wednesday, December 10th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 15.3% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

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 given a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Monday, February 2nd. Ally Financial’s payout ratio is currently 51.06%.

Insiders Place Their Bets

In other Ally Financial news, CFO Russell E. Hutchinson bought 11,566 shares of the stock in a transaction on 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 transaction, the chief financial officer directly owned 225,336 shares of the company’s stock, valued at $9,727,755.12. This represents a 5.41% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael George Rhodes acquired 23,800 shares of the business’s stock in a transaction that occurred on Friday, January 23rd. The stock was bought at an average cost of $41.68 per share, for a total transaction of $991,984.00. Following the completion of the purchase, the chief executive officer directly owned 49,434 shares in the company, valued at $2,060,409.12. This represents a 92.85% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Royal Bank of Canada raised its stake in shares of Ally Financial by 106.5% in the first quarter. Royal Bank of Canada now owns 251,123 shares of the financial services provider’s stock valued at $9,158,000 after purchasing an additional 129,497 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Ally Financial by 22.8% during the 1st quarter. NewEdge Advisors LLC now owns 2,235 shares of the financial services provider’s stock valued at $82,000 after purchasing an additional 415 shares during the last quarter. Empowered Funds LLC lifted its holdings in Ally Financial by 11.1% during the 1st quarter. Empowered Funds LLC now owns 12,900 shares of the financial services provider’s stock valued at $470,000 after purchasing an additional 1,292 shares during the last quarter. Focus Partners Wealth acquired a new position in Ally Financial in the first quarter valued at about $259,000. Finally, Callan Family Office LLC bought a new stake in Ally Financial during the second quarter worth about $412,000. Institutional investors and hedge funds own 88.76% of the company’s stock.

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.