Ally Financial (NYSE:ALLY) Issues Earnings Results, Beats Expectations By $0.07 EPS

Ally Financial (NYSE:ALLY) released its earnings results on Wednesday. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.07, FiscalAI reports. Ally Financial had a return on equity of 9.96% and a net margin of 8.10%.The company had revenue of $2.17 billion for the quarter, compared to analysts’ expectations of $2.15 billion.

Ally Financial Stock Down 2.7%

ALLY opened at $42.43 on Wednesday. The stock’s fifty day moving average is $43.27 and its 200-day moving average is $41.10. The company has a market capitalization of $13.07 billion, a PE ratio of 25.56, a P/E/G ratio of 0.21 and a beta of 1.17. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.92 and a current ratio of 0.92. Ally Financial has a one year low of $29.52 and a one year high of $47.27.

Ally Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Investors of record on Monday, February 2nd will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 2.8%. The ex-dividend date is Monday, February 2nd. Ally Financial’s dividend payout ratio (DPR) is currently 72.29%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. JPMorgan Chase & Co. lifted their target price on shares of Ally Financial from $43.00 to $48.00 and gave the stock an “overweight” rating in a research report on Monday, January 12th. Evercore ISI upgraded Ally Financial from an “in-line” rating to an “outperform” rating and lifted their price objective for the stock from $48.00 to $53.00 in a research report on Tuesday, January 6th. Truist Financial boosted their target price on shares of Ally Financial from $47.00 to $51.00 and gave the company a “buy” rating in a research note on Monday, December 22nd. Barclays raised their price target on shares of Ally Financial from $44.00 to $54.00 and gave the stock an “equal weight” rating in a research note on Monday, January 5th. Finally, Morgan Stanley set a $53.00 price objective on Ally Financial and gave the company an “overweight” rating in a research report on Tuesday, December 16th. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Ally Financial currently has an average rating of “Moderate Buy” and a consensus price target of $49.44.

Hedge Funds Weigh In On Ally Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Larson Financial Group LLC boosted its position in Ally Financial by 67.0% during the third quarter. Larson Financial Group LLC now owns 1,072 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 430 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Ally Financial by 374.9% in the second quarter. EverSource Wealth Advisors LLC now owns 1,477 shares of the financial services provider’s stock valued at $58,000 after acquiring an additional 1,166 shares during the period. NewEdge Advisors LLC raised its position in shares of Ally Financial by 22.8% during the first quarter. NewEdge Advisors LLC now owns 2,235 shares of the financial services provider’s stock valued at $82,000 after buying an additional 415 shares during the last quarter. Triumph Capital Management acquired a new position in Ally Financial in the 3rd quarter valued at approximately $112,000. Finally, Parallel Advisors LLC lifted its position in Ally Financial by 21.0% in the third quarter. Parallel Advisors LLC now owns 3,585 shares of the financial services provider’s stock worth $141,000 after purchasing an additional 621 shares during the period. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

Ally Financial announced that its Board of Directors has authorized a share repurchase program on Wednesday, December 10th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 15.3% of its shares through open market purchases. Shares repurchase programs are generally 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.