Ally Financial (NYSE:ALLY) Sees Large Volume Increase on Earnings Beat

Ally Financial Inc. (NYSE:ALLY) shares saw unusually-high trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 1,406,955 shares traded hands during trading, a decline of 64% from the previous session’s volume of 3,935,096 shares.The stock last traded at $39.03 and had previously closed at $38.71.

The financial services provider reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.12. Ally Financial had a return on equity of 8.35% and a net margin of 10.59%. The company had revenue of $1.99 billion for the quarter, compared to analyst estimates of $1.96 billion. During the same quarter in the prior year, the firm posted $0.82 EPS. Ally Financial’s quarterly revenue was down 5.4% compared to the same quarter last year.

Ally Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 15th. Shareholders of record on Wednesday, May 1st will be paid a $0.30 dividend. The ex-dividend date is Tuesday, April 30th. This represents a $1.20 dividend on an annualized basis and a yield of 3.07%. Ally Financial’s payout ratio is 48.98%.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on ALLY shares. Wells Fargo & Company increased their target price on Ally Financial from $29.00 to $33.00 and gave the stock an “underweight” rating in a research note on Wednesday, April 10th. Compass Point increased their target price on Ally Financial from $28.00 to $37.00 and gave the stock a “neutral” rating in a research note on Thursday, April 11th. JPMorgan Chase & Co. lowered Ally Financial from a “neutral” rating to an “underweight” rating and increased their target price for the stock from $37.00 to $39.00 in a research note on Wednesday, April 3rd. Raymond James lowered Ally Financial from a “market perform” rating to an “underperform” rating in a research note on Friday, January 5th. Finally, Morgan Stanley upgraded Ally Financial from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $37.00 to $47.00 in a research note on Thursday, February 8th. Four equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $38.47.

Institutional Investors Weigh In On Ally Financial

Several institutional investors have recently added to or reduced their stakes in ALLY. Sessa Capital IM L.P. lifted its holdings in shares of Ally Financial by 426.5% during the first quarter. Sessa Capital IM L.P. now owns 9,493,106 shares of the financial services provider’s stock worth $241,979,000 after purchasing an additional 7,689,915 shares during the period. Millennium Management LLC lifted its holdings in shares of Ally Financial by 195.1% during the fourth quarter. Millennium Management LLC now owns 6,058,768 shares of the financial services provider’s stock worth $148,137,000 after purchasing an additional 4,005,417 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Ally Financial by 233.9% during the fourth quarter. AQR Capital Management LLC now owns 4,118,432 shares of the financial services provider’s stock worth $100,160,000 after purchasing an additional 2,884,833 shares during the period. Scout Investments Inc. acquired a new stake in shares of Ally Financial during the fourth quarter worth about $63,080,000. Finally, Norges Bank acquired a new stake in shares of Ally Financial during the fourth quarter worth about $62,869,000. Institutional investors and hedge funds own 88.76% of the company’s stock.

Ally Financial Price Performance

The company has a debt-to-equity ratio of 1.50, a current ratio of 0.92 and a quick ratio of 0.90. The stock has a market cap of $11.87 billion, a price-to-earnings ratio of 15.94, a P/E/G ratio of 0.57 and a beta of 1.40. The stock has a fifty day moving average of $37.71 and a 200 day moving average of $32.97.

Ally Financial Company Profile

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.