Chung Wu Investment Group LLC Increases Stock Position in Ally Financial Inc. $ALLY

Chung Wu Investment Group LLC raised its stake in shares of Ally Financial Inc. (NYSE:ALLY) by 224.1% in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 38,890 shares of the financial services provider’s stock after purchasing an additional 26,890 shares during the period. Ally Financial accounts for approximately 1.3% of Chung Wu Investment Group LLC’s holdings, making the stock its 19th biggest position. Chung Wu Investment Group LLC’s holdings in Ally Financial were worth $1,524,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the company. Principal Financial Group Inc. lifted its position in shares of Ally Financial by 7.5% in the third quarter. Principal Financial Group Inc. now owns 674,471 shares of the financial services provider’s stock worth $26,439,000 after buying an additional 47,184 shares in the last quarter. Lee Financial Co increased its stake in Ally Financial by 30.3% in the 3rd quarter. Lee Financial Co now owns 31,579 shares of the financial services provider’s stock worth $1,238,000 after acquiring an additional 7,352 shares during the last quarter. AlphaQuest LLC raised its holdings in shares of Ally Financial by 11.0% during the 3rd quarter. AlphaQuest LLC now owns 62,262 shares of the financial services provider’s stock worth $2,441,000 after acquiring an additional 6,181 shares in the last quarter. Arizona State Retirement System raised its holdings in shares of Ally Financial by 1.5% during the 3rd quarter. Arizona State Retirement System now owns 81,807 shares of the financial services provider’s stock worth $3,207,000 after acquiring an additional 1,173 shares in the last quarter. Finally, AE Wealth Management LLC bought a new position in shares of Ally Financial during the 3rd quarter valued at approximately $355,000. Hedge funds and other institutional investors own 88.76% of the company’s stock.

Ally Financial Price Performance

Shares of ALLY stock opened at $42.21 on Friday. The stock has a 50 day moving average price of $43.86 and a 200 day moving average price of $41.20. Ally Financial Inc. has a 52-week low of $29.52 and a 52-week high of $47.27. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.92 and a current ratio of 0.92. The firm has a market capitalization of $13.00 billion, a P/E ratio of 17.96, a P/E/G ratio of 0.22 and a beta of 1.17.

Ally Financial (NYSE:ALLY) last released 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. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The business had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.15 billion. During the same quarter last year, the firm posted $0.78 earnings per share. The business’s revenue was up 4.8% compared to the same quarter last year. As a group, sell-side analysts predict that Ally Financial Inc. will post 3.57 earnings per share for the current year.

Ally Financial announced that its board has authorized a share buyback program on Wednesday, December 10th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the financial services provider to repurchase up to 15.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Ally Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 17th. Investors of record on Monday, February 2nd will be issued a dividend of $0.30 per share. The ex-dividend date is Monday, February 2nd. This represents a $1.20 dividend on an annualized basis and a yield of 2.8%. Ally Financial’s dividend payout ratio (DPR) is presently 51.06%.

Insider Activity

In related news, CEO Michael George Rhodes bought 23,800 shares of the company’s stock in a transaction on Friday, January 23rd. The shares were acquired at an average cost of $41.68 per share, for a total transaction of $991,984.00. Following the purchase, the chief executive officer directly owned 49,434 shares of the company’s stock, valued at approximately $2,060,409.12. The trade was a 92.85% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Russell E. Hutchinson purchased 11,566 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The shares were bought at an average cost of $43.17 per share, with a total value of $499,304.22. Following the purchase, the chief financial officer directly owned 225,336 shares of the company’s stock, valued at approximately $9,727,755.12. This represents a 5.41% increase in their position. The disclosure for this purchase is available in the SEC filing. 0.67% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Morgan Stanley set a $53.00 price target on shares of Ally Financial and gave the company an “overweight” rating in a research note on Tuesday, December 16th. TD Cowen restated a “buy” rating on shares of Ally Financial in a report on Thursday, January 8th. JPMorgan Chase & Co. increased their price target on shares of Ally Financial from $43.00 to $48.00 and gave the company an “overweight” rating in a report on Monday, January 12th. Truist Financial dropped their price target on Ally Financial from $51.00 to $50.00 and set a “buy” rating for the company in a research report on Monday, January 26th. Finally, Barclays upped their price objective on Ally Financial from $44.00 to $54.00 and gave the company an “equal weight” rating in a research report on Monday, January 5th. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Ally Financial presently has a consensus rating of “Moderate Buy” and a consensus price target of $50.44.

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.