Key Points
- CFO Russell Hutchinson bought 11,566 shares of Ally at an average price of $43.17 on Jan. 27 for about $499,304, boosting his direct holdings to 225,336 shares (a 5.41% increase) per an SEC filing.
- Ally beat Q4 estimates with EPS of $1.09 versus $1.01 expected and revenue of $2.17 billion (up 4.8% YoY), and its board approved a $2.0 billion share repurchase program (around 15.3% of shares).
- The company announced a quarterly dividend of $0.30 per share (annualized $1.20, ~2.8% yield, ex-dividend Feb. 2), while analysts maintain a consensus "Moderate Buy" with an average price target of $50.44.
Ally Financial Inc. (NYSE:ALLY - Get Free Report) CFO Russell Hutchinson bought 11,566 shares of the company's stock in a transaction that occurred on Tuesday, January 27th. The stock was acquired at an average price of $43.17 per share, for a total transaction of $499,304.22. Following the completion of the acquisition, the chief financial officer directly owned 225,336 shares in the company, valued at approximately $9,727,755.12. This represents a 5.41% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.
Ally Financial Trading Down 1.4%
Shares of NYSE:ALLY opened at $42.28 on Thursday. 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 stock has a market capitalization of $13.02 billion, a price-to-earnings ratio of 17.99, a PEG ratio of 0.22 and a beta of 1.17. Ally Financial Inc. has a 1-year low of $29.52 and a 1-year high of $47.27. The company has a 50 day moving average price of $43.68 and a 200 day moving average price of $41.17.
Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings results on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts' expectations of $2.15 billion. During the same quarter in the prior year, the company earned $0.78 earnings per share. The firm's revenue was up 4.8% on a year-over-year basis. On average, research analysts anticipate that Ally Financial Inc. will post 3.57 EPS for the current fiscal year.
Ally Financial announced that its Board of Directors has approved a stock repurchase plan on Wednesday, December 10th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 15.3% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its stock is undervalued.
Ally Financial Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, February 2nd. Ally Financial's dividend payout ratio is currently 51.06%.
Wall Street Analyst Weigh In
Several analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft boosted their price objective on Ally Financial from $55.00 to $57.00 and gave the stock a "buy" rating in a report on Thursday, January 22nd. Evercore ISI upgraded shares of Ally Financial from an "in-line" rating to an "outperform" rating and upped their price target for the company from $48.00 to $53.00 in a research report on Tuesday, January 6th. Keefe, Bruyette & Woods lowered their price objective on shares of Ally Financial from $56.00 to $51.00 and set an "outperform" rating on the stock in a research report on Wednesday, October 1st. BTIG Research reissued a "neutral" rating on shares of Ally Financial in a research note on Tuesday, January 6th. Finally, Truist Financial decreased their target price on Ally Financial from $51.00 to $50.00 and set a "buy" rating for the company in a research report on Monday. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, Ally Financial currently has a consensus rating of "Moderate Buy" and an average price target of $50.44.
Check Out Our Latest Stock Analysis on ALLY
Institutional Trading of Ally Financial
Hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada grew its stake in 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 grew its stake in shares of Ally Financial by 22.8% in the 1st 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 in the last quarter. Empowered Funds LLC grew its stake in shares of Ally Financial by 11.1% in the 1st quarter. Empowered Funds LLC now owns 12,900 shares of the financial services provider's stock valued at $470,000 after buying an additional 1,292 shares in the last quarter. Focus Partners Wealth acquired a new position in Ally Financial in the first quarter worth approximately $259,000. Finally, Janney Montgomery Scott LLC raised its position in Ally Financial by 1.9% during the second quarter. Janney Montgomery Scott LLC now owns 68,926 shares of the financial services provider's stock valued at $2,685,000 after acquiring an additional 1,296 shares in the last quarter. 88.76% of the stock is currently owned by hedge funds and other institutional investors.
Ally Financial Company Profile
(
Get Free Report)
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.
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