Ally Financial (NYSE:ALLY) Reaches New 12-Month High – Here’s Why

Ally Financial Inc. (NYSE:ALLY) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $46.30 and last traded at $46.0560, with a volume of 106885 shares changing hands. The stock had previously closed at $45.69.

Analyst Ratings Changes

ALLY has been the topic of a number of recent research reports. Keefe, Bruyette & Woods reduced their price objective on Ally Financial from $56.00 to $51.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 1st. Truist Financial raised their target price on Ally Financial from $47.00 to $51.00 and gave the company a “buy” rating in a report on Monday. Weiss Ratings lowered Ally Financial from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday. JPMorgan Chase & Co. increased their price objective on shares of Ally Financial from $42.00 to $43.00 and gave the company an “overweight” rating in a research report on Monday, October 20th. Finally, TD Cowen upgraded shares of Ally Financial from a “hold” rating to a “buy” rating and lifted their price objective for the company from $43.00 to $50.00 in a research note on Monday, October 20th. Twelve research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $46.47.

Ally Financial Stock Performance

The company has a market capitalization of $14.30 billion, a price-to-earnings ratio of 27.96, a price-to-earnings-growth ratio of 0.32 and a beta of 1.22. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.31. The stock has a 50-day simple moving average of $41.17 and a 200-day simple moving average of $40.09.

Ally Financial (NYSE:ALLY) last issued its quarterly earnings results on Monday, July 28th. The financial services provider reported $0.99 EPS for the quarter. Ally Financial had a net margin of 8.10% and a return on equity of 9.96%. The business had revenue of $2.06 billion for the quarter. On average, analysts anticipate that Ally Financial Inc. will post 3.57 earnings per share for the current year.

Ally Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, November 14th. Stockholders of record on Friday, October 31st were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, October 31st. This represents a $1.20 annualized dividend and a dividend yield of 2.6%. Ally Financial’s payout ratio is 72.29%.

Ally Financial declared that its board has initiated a share repurchase plan on Wednesday, December 10th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the financial services provider to purchase up to 15.3% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

Insider Transactions at Ally Financial

In other Ally Financial news, insider Kathleen L. Patterson sold 29,000 shares of the business’s stock in a transaction on Wednesday, October 22nd. The stock was sold at an average price of $40.86, for a total transaction of $1,184,940.00. Following the completion of the transaction, the insider owned 100,203 shares in the company, valued at approximately $4,094,294.58. The trade was a 22.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP raised its holdings in shares of 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 valued at $467,996,000 after acquiring an additional 1,958,201 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Ally Financial by 4.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,626,748 shares of the financial services provider’s stock worth $220,569,000 after purchasing an additional 226,188 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its stake in Ally Financial by 10.9% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 4,658,877 shares of the financial services provider’s stock valued at $169,909,000 after purchasing an additional 456,698 shares during the period. First Manhattan CO. LLC. lifted its holdings in shares of Ally Financial by 0.8% in the first quarter. First Manhattan CO. LLC. now owns 4,258,760 shares of the financial services provider’s stock valued at $155,317,000 after purchasing an additional 32,121 shares in the last quarter. Finally, Bank of America Corp DE lifted its holdings in shares of Ally Financial by 38.9% in the second 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 in the last quarter. Institutional investors 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.