Ally Financial (NYSE:ALLY) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Ally Financial’s shares have outperformed the industry over the past six months. The performance was supported by the company’s impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The gradual improvement in net interest margin (NIM) with the rise in interest rates will likely continue to support the company’s top-line growth. Also, the company’s initiatives to diversify revenue base will support profitability in the quarters ahead. Further, its steady capital deployment plan reflects a strong balance sheet position. However, persistently increasing expenses are expected to hurt bottom-line growth to some extent. Also, the company's use of high debt levels might hamper its flexibility and restrict it from procuring additional finance for working capital and other purposes.”
ALLY has been the topic of several other reports. Wells Fargo assumed coverage on Ally Financial in a research note on Friday, December 1st. They set an “outperform” rating and a $30.00 price objective on the stock. Sandler O’Neill reissued a “hold” rating and set a $30.00 price objective on shares of Ally Financial in a research note on Friday, February 23rd. Oppenheimer set a $38.00 price objective on Ally Financial and gave the stock a “buy” rating in a research note on Tuesday, January 30th. Barclays boosted their price objective on Ally Financial from $26.00 to $36.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 2nd. Finally, BMO Capital Markets boosted their price objective on Ally Financial from $32.00 to $33.00 and gave the stock a “market perform” rating in a research note on Monday. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. Ally Financial presently has a consensus rating of “Buy” and an average target price of $32.41.
Shares of Ally Financial (NYSE:ALLY) opened at $27.47 on Tuesday. The company has a debt-to-equity ratio of 3.28, a quick ratio of 1.20 and a current ratio of 1.20. Ally Financial has a 52 week low of $18.11 and a 52 week high of $31.29. The firm has a market capitalization of $11,869.26, a P/E ratio of 13.40, a price-to-earnings-growth ratio of 0.72 and a beta of 1.40.
Ally Financial (NYSE:ALLY) last issued its quarterly earnings data on Tuesday, January 30th. The financial services provider reported $0.70 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.59 by $0.11. Ally Financial had a return on equity of 8.10% and a net margin of 13.73%. The company had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.43 billion. During the same period in the previous year, the firm posted $0.54 earnings per share. The firm’s revenue for the quarter was up 7.7% on a year-over-year basis. equities analysts predict that Ally Financial will post 2.98 EPS for the current fiscal year.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Harvest Fund Management Co. Ltd purchased a new stake in shares of Ally Financial in the fourth quarter valued at approximately $132,000. Meeder Asset Management Inc. purchased a new stake in Ally Financial during the fourth quarter worth $140,000. Global Trust Asset Management LLC purchased a new stake in Ally Financial during the fourth quarter worth $163,000. Acadian Asset Management LLC purchased a new stake in Ally Financial during the fourth quarter worth $178,000. Finally, Mraz Amerine & Associates Inc. purchased a new stake in Ally Financial during the fourth quarter worth $201,000.
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Ally Financial Company Profile
Ally Financial Inc provides various financial products and services for consumers, businesses, automotive dealers, and corporate clients in the United States and Canada. The company operates Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.
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