Ally Financial (NYSE:ALLY) Shares Gap Down – Here’s Why

Ally Financial Inc. (NYSE:ALLY) shares gapped down before the market opened on Wednesday . The stock had previously closed at $42.42, but opened at $40.49. Ally Financial shares last traded at $42.14, with a volume of 1,431,753 shares changing hands.

Wall Street Analyst Weigh In

ALLY has been the topic of a number of research reports. Royal Bank Of Canada reiterated an “outperform” rating and issued a $52.00 price target on shares of Ally Financial in a report on Monday, January 12th. JPMorgan Chase & Co. boosted their target price on Ally Financial from $43.00 to $48.00 and gave the stock an “overweight” rating in a research report on Monday, January 12th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ally Financial in a research note on Monday, December 29th. The Goldman Sachs Group reiterated a “neutral” rating and set a $55.00 target price on shares of Ally Financial in a research report on Tuesday, January 6th. Finally, Wall Street Zen cut shares of Ally Financial from a “buy” rating to a “hold” rating in a research note on Sunday, November 9th. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $49.44.

Ally Financial Trading Up 0.7%

The stock has a fifty day moving average of $43.27 and a 200-day moving average of $41.10. The company has a market cap of $13.15 billion, a PE ratio of 25.67, a PEG 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 (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 the consensus estimate of $1.02 by $0.07. The business had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.15 billion. Ally Financial had a return on equity of 9.96% and a net margin of 8.10%.The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same period last year, the company earned $0.78 earnings per share. Sell-side analysts anticipate that Ally Financial Inc. will post 3.57 EPS for the current fiscal year.

Ally Financial Announces Dividend

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

Ally Financial declared that its Board of Directors has initiated a stock buyback plan on Wednesday, December 10th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the financial services provider to purchase 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.

Institutional Trading of Ally Financial

Hedge funds and other institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP raised its stake in Ally Financial by 19.6% in 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 buying an additional 1,958,201 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Ally Financial by 4.2% in 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 acquiring an additional 226,188 shares during the last quarter. Bank of America Corp DE lifted its position in Ally Financial by 38.9% during the 2nd quarter. Bank of America Corp DE now owns 3,771,190 shares of the financial services provider’s stock worth $146,888,000 after acquiring an additional 1,056,060 shares during the period. ANTIPODES PARTNERS Ltd grew its stake in Ally Financial by 7.7% during the 2nd quarter. ANTIPODES PARTNERS Ltd now owns 3,500,623 shares of the financial services provider’s stock valued at $136,360,000 after purchasing an additional 249,347 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Ally Financial in the second quarter worth about $95,897,000. Hedge funds and other institutional investors own 88.76% of the company’s stock.

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.