Ally Financial (NYSE:ALLY) Price Target Raised to $57.00

Ally Financial (NYSE:ALLY) had its price target upped by equities researchers at Deutsche Bank Aktiengesellschaft from $55.00 to $57.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The firm currently has a “buy” rating on the financial services provider’s stock. Deutsche Bank Aktiengesellschaft’s price objective indicates a potential upside of 32.76% from the company’s previous close.

A number of other analysts also recently commented on the company. Truist Financial boosted their target price on Ally Financial from $47.00 to $51.00 and gave the stock a “buy” rating in a research report on Monday, December 22nd. Evercore ISI raised Ally Financial from an “in-line” rating to an “outperform” rating and lifted their price target for the stock from $48.00 to $53.00 in a research note on Tuesday, January 6th. TD Cowen reiterated a “buy” rating on shares of Ally Financial in a research report on Thursday, January 8th. Barclays raised their target price on shares of Ally Financial from $44.00 to $54.00 and gave the company an “equal weight” rating in a report on Monday, January 5th. Finally, Morgan Stanley set a $53.00 target price on shares of Ally Financial and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Thirteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $49.88.

Ally Financial Stock Up 1.2%

Ally Financial stock opened at $42.94 on Thursday. The stock’s 50 day moving average price is $43.31 and its 200 day moving average price is $41.11. The company has a market cap of $13.23 billion, a PE ratio of 25.88, a price-to-earnings-growth ratio of 0.21 and a beta of 1.17. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.92 and a quick ratio of 0.92. Ally Financial has a 1-year low of $29.52 and a 1-year high of $47.27.

Ally Financial (NYSE:ALLY) last issued its earnings results on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.08. The company had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.15 billion. Ally Financial had a net margin of 8.10% and a return on equity of 9.96%. The firm’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period last year, the company posted $0.78 earnings per share. On average, sell-side analysts predict that Ally Financial will post 3.57 EPS for the current fiscal year.

Ally Financial declared that its board has authorized a share buyback program on Wednesday, December 10th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 15.3% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Trading of Ally Financial

A number of institutional investors and hedge funds have recently made changes to their positions in ALLY. Allworth Financial LP grew its holdings in shares of Ally Financial by 385.2% during the 2nd quarter. Allworth Financial LP now owns 752 shares of the financial services provider’s stock worth $29,000 after purchasing an additional 597 shares during the period. Mather Group LLC. purchased a new stake in Ally Financial during the third quarter worth approximately $31,000. Hantz Financial Services Inc. increased its position in shares of Ally Financial by 662.0% in the second quarter. Hantz Financial Services Inc. now owns 823 shares of the financial services provider’s stock worth $32,000 after acquiring an additional 715 shares in the last quarter. Westside Investment Management Inc. raised its stake in shares of Ally Financial by 116.8% in the 2nd quarter. Westside Investment Management Inc. now owns 837 shares of the financial services provider’s stock valued at $34,000 after acquiring an additional 451 shares during the period. Finally, MAI Capital Management lifted its holdings in shares of Ally Financial by 45.1% during the 2nd quarter. MAI Capital Management now owns 975 shares of the financial services provider’s stock valued at $38,000 after acquiring an additional 303 shares in the last quarter. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Ally Financial News Roundup

Here are the key news stories impacting Ally Financial this week:

• Positive Sentiment: Q4 results beat expectations — Ally reported $1.09 EPS vs. consensus $1.01 and revenue $2.17B vs. $2.15B, showing Y/Y revenue growth and improved earnings versus the prior year; this supports the bull case. PR Newswire: Q4 Results
• Positive Sentiment: $2.0 billion share buyback authorized — Management approved an accelerated $2B repurchase program, which increases capital return to shareholders and can be EPS-accretive. MSN: $2B Buyback
• Positive Sentiment: Dividend maintained — Board declared a quarterly common-stock dividend of $0.30 per share (payable Feb 17), supporting income investors. PR Newswire: Dividend
• Neutral Sentiment: Full earnings materials and transcripts available — Conference call transcript and slide deck provide management detail for investors doing diligence. Earnings Call Transcript
• Negative Sentiment: Auto-finance weakness flagged — Multiple outlets highlight softness in Ally’s auto-lending business and investor focus on that exposure; auto-loan trends weigh on sentiment given Ally’s concentration in vehicle finance. Investing.com: Auto Finance Weakness
• Negative Sentiment: Margins missed earlier guidance — Reports note net interest margin and other margin metrics fell short of prior guidance, undermining upside to future profitability. Bloomberg: Margins Miss Guidance
• Negative Sentiment: Analyst pushback / downgrade — After a recent rally and the buyback, at least one shop downgraded Ally to Hold citing capital-allocation risk and low pro-forma CET1 (8.3%), which raises concerns about balance-sheet cushion if economic stress appears. Seeking Alpha: Downgrade
• Negative Sentiment: Management warns on economic backdrop — Coverage notes management signaling potential macro headwinds ahead, which could pressure credit trends and loan growth. American Banker: Economic Concerns

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.