Evercore ISI Lowers Ally Financial (NYSE:ALLY) Price Target to $51.00

Ally Financial (NYSE:ALLY) had its target price reduced by stock analysts at Evercore ISI from $53.00 to $51.00 in a research report issued to clients and investors on Thursday, Marketbeat reports. The brokerage currently has an “outperform” rating on the financial services provider’s stock. Evercore ISI’s price objective would indicate a potential upside of 21.41% from the stock’s previous close.

ALLY has been the topic of several other research reports. 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 reiterated a “buy” rating on shares of Ally Financial in a research report on Thursday, January 8th. Wells Fargo & Company raised Ally Financial from a “hold” rating to an “overweight” rating in a report on Wednesday, December 17th. BTIG Research reiterated a “neutral” rating on shares of Ally Financial in a research report on Tuesday, January 6th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $52.00 target price on shares of Ally Financial in a report on Monday, January 12th. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $50.31.

Ally Financial Stock Performance

Shares of Ally Financial stock traded down $1.33 during trading hours on Thursday, reaching $42.01. The company’s stock had a trading volume of 960,364 shares, compared to its average volume of 3,851,202. The company has a debt-to-equity ratio of 1.30, 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. The company’s 50 day simple moving average is $43.98 and its 200 day simple moving average is $41.26. The stock has a market cap of $12.94 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 (NYSE:ALLY) last issued its earnings results on Wednesday, January 21st. The financial services provider reported $1.09 EPS for the quarter, beating 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 company had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.15 billion. During the same period in the previous year, the firm posted $0.78 earnings per share. Ally Financial’s quarterly revenue was up 4.8% compared to the same quarter last year. As a group, analysts expect that Ally Financial will post 3.57 EPS for the current fiscal year.

Ally Financial announced that its Board of Directors has authorized a stock buyback program on Wednesday, December 10th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 15.3% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Insider Transactions at Ally Financial

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

Institutional Investors Weigh In On Ally Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP raised its holdings in Ally Financial by 19.6% during the third quarter. Wellington Management Group LLP now owns 11,938,680 shares of the financial services provider’s stock worth $467,996,000 after acquiring an additional 1,958,201 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in Ally Financial by 4.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,626,748 shares of the financial services provider’s stock valued at $220,569,000 after acquiring an additional 226,188 shares during the last quarter. Thrivent Financial for Lutherans grew its position in shares of Ally Financial by 0.5% in the 4th quarter. Thrivent Financial for Lutherans now owns 3,867,023 shares of the financial services provider’s stock valued at $175,137,000 after acquiring an additional 20,198 shares during the period. Bank of America Corp DE raised its holdings in shares of Ally Financial by 38.9% in the 2nd quarter. Bank of America Corp DE now owns 3,771,190 shares of the financial services provider’s stock valued at $146,888,000 after purchasing an additional 1,056,060 shares during the period. Finally, ANTIPODES PARTNERS Ltd grew its holdings in Ally Financial by 7.7% during the second quarter. ANTIPODES PARTNERS Ltd now owns 3,500,623 shares of the financial services provider’s stock worth $136,360,000 after purchasing an additional 249,347 shares during the period. 88.76% of the stock is currently owned by institutional investors and hedge funds.

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.