Ally Financial (NYSE:ALLY) Price Target Cut to $40.00 by Analysts at Royal Bank of Canada

Ally Financial (NYSE:ALLY) had its price objective decreased by Royal Bank of Canada from $45.00 to $40.00 in a research report sent to investors on Monday morning. Royal Bank of Canada currently has an outperform rating on the financial services provider’s stock. The firm anticipates consistent though seasonally-driven fundamental trends, with lower loans and volumes in the quarter, the analyst tells investors in a research note. RBC also expects stable credit trends, with improvement in year over year delinquencies for most names, warning however that Q1 loan loss provisions and reserve levels may reflect the recent more uncertain environment.

A number of other research analysts also recently issued reports on the company. BTIG Research downgraded Ally Financial from a “neutral” rating to a “sell” rating and set a $30.00 price objective for the company. in a research note on Tuesday, March 25th. Truist Financial dropped their target price on shares of Ally Financial from $47.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 4th. JPMorgan Chase & Co. decreased their price target on Ally Financial from $43.00 to $36.00 and set an “overweight” rating on the stock in a report on Tuesday, April 8th. Barclays lifted their target price on Ally Financial from $36.00 to $44.00 and gave the company an “equal weight” rating in a research note on Monday, January 6th. Finally, Compass Point raised shares of Ally Financial from a “neutral” rating to a “buy” rating and increased their price objective for the company from $37.00 to $41.00 in a report on Monday, April 7th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and ten have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $41.76.

Ally Financial Stock Down 1.7 %

Shares of NYSE:ALLY traded down $0.55 on Monday, hitting $31.64. 5,446,790 shares of the company traded hands, compared to its average volume of 3,538,860. The stock has a 50 day simple moving average of $35.39 and a 200-day simple moving average of $36.22. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.51. The company has a market cap of $9.72 billion, a PE ratio of 12.23, a PEG ratio of 0.32 and a beta of 1.12. Ally Financial has a 52 week low of $29.52 and a 52 week high of $45.46.

Ally Financial (NYSE:ALLY) last released its quarterly earnings data on Thursday, April 17th. The financial services provider reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.53 by $0.05. Ally Financial had a net margin of 11.29% and a return on equity of 9.31%. During the same quarter in the previous year, the business earned $0.45 earnings per share. As a group, research analysts expect that Ally Financial will post 3.57 earnings per share for the current year.

Ally Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 15th. Shareholders of record on Thursday, May 1st will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 3.79%. Ally Financial’s dividend payout ratio (DPR) is presently 46.15%.

Insider Transactions at Ally Financial

In related news, CEO Michael George Rhodes bought 25,634 shares of the stock in a transaction on Monday, January 27th. The stock was bought at an average price of $39.09 per share, for a total transaction of $1,002,033.06. Following the completion of the acquisition, the chief executive officer now directly owns 25,634 shares in the company, valued at approximately $1,002,033.06. This represents a ? increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Russell E. Hutchinson purchased 19,100 shares of the business’s stock in a transaction dated Friday, January 24th. The stock was bought at an average price of $39.45 per share, for a total transaction of $753,495.00. Following the completion of the acquisition, the chief financial officer now directly owns 202,845 shares in the company, valued at approximately $8,002,235.25. This trade represents a 10.39 % increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ALLY. Principal Securities Inc. boosted its stake in Ally Financial by 89.4% in the fourth quarter. Principal Securities Inc. now owns 1,051 shares of the financial services provider’s stock valued at $38,000 after acquiring an additional 496 shares in the last quarter. Kestra Investment Management LLC acquired a new stake in Ally Financial in the fourth quarter worth about $43,000. UMB Bank n.a. increased its holdings in shares of Ally Financial by 218.8% during the fourth quarter. UMB Bank n.a. now owns 1,546 shares of the financial services provider’s stock valued at $56,000 after acquiring an additional 1,061 shares in the last quarter. Harbour Investments Inc. boosted its stake in Ally Financial by 38.5% in the 4th quarter. Harbour Investments Inc. now owns 2,142 shares of the financial services provider’s stock worth $77,000 after purchasing an additional 595 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd purchased a new stake in Ally Financial during the 4th quarter worth approximately $78,000. Hedge funds and other institutional investors own 88.76% of the company’s stock.

About Ally Financial

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.