Evercore Issues Pessimistic Forecast for Ally Financial (NYSE:ALLY) Stock Price

Ally Financial (NYSE:ALLY) had its target price cut by equities researchers at Evercore from $53.00 to $51.00 in a note issued to investors on Thursday, Marketbeat Ratings reports. The brokerage presently has an “outperform” rating on the financial services provider’s stock. Evercore’s price target would suggest a potential upside of 20.31% from the company’s current price.

A number of other equities research analysts have also recently issued reports on the company. Morgan Stanley set a $53.00 price objective on Ally Financial and gave the company an “overweight” rating in a research note on Tuesday, December 16th. JPMorgan Chase & Co. boosted their price target on shares of Ally Financial from $43.00 to $48.00 and gave the company an “overweight” rating in a research report on Monday, January 12th. Barclays raised their price objective on shares of Ally Financial from $44.00 to $54.00 and gave the stock an “equal weight” rating in a report on Monday, January 5th. Truist Financial lowered their target price on shares of Ally Financial from $51.00 to $50.00 and set a “buy” rating on the stock in a report on Monday, January 26th. Finally, The Goldman Sachs Group restated a “neutral” rating and set a $55.00 target price on shares of Ally Financial in a research report on Tuesday, January 6th. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $50.31.

Ally Financial Price Performance

Ally Financial stock opened at $42.39 on Thursday. The business’s 50 day simple moving average is $44.02 and its 200 day simple moving average is $41.29. Ally Financial has a 12 month low of $29.52 and a 12 month high of $47.27. The company has a market cap of $13.06 billion, a price-to-earnings ratio of 18.04, a PEG ratio of 0.21 and a beta of 1.19. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.30.

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 the consensus estimate of $1.01 by $0.08. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The firm had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.15 billion. During the same period in the previous year, the company posted $0.78 earnings per share. The business’s revenue was up 4.8% on a year-over-year basis. Sell-side analysts forecast that Ally Financial will post 3.57 EPS for the current year.

Ally Financial announced that its board has initiated a share repurchase program on Wednesday, December 10th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 15.3% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Ally Financial

In related news, CEO Michael George Rhodes bought 23,800 shares of the business’s stock in a transaction that occurred on Friday, January 23rd. The stock was bought at an average cost of $41.68 per share, for a total transaction of $991,984.00. Following the completion of the transaction, the chief executive officer owned 49,434 shares of the company’s stock, valued at approximately $2,060,409.12. The trade was a 92.85% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Russell E. Hutchinson bought 11,566 shares of Ally Financial stock in a transaction that occurred on Tuesday, January 27th. The stock was purchased at an average cost of $43.17 per share, for a total transaction of $499,304.22. Following the purchase, the chief financial officer owned 225,336 shares of the company’s stock, valued at $9,727,755.12. The trade was a 5.41% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.67% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ally Financial

A number of large investors have recently modified their holdings of ALLY. Chung Wu Investment Group LLC increased its stake in shares of Ally Financial by 224.1% during the third quarter. Chung Wu Investment Group LLC now owns 38,890 shares of the financial services provider’s stock valued at $1,524,000 after buying an additional 26,890 shares during the period. Norges Bank purchased a new stake in Ally Financial in the second quarter worth $95,897,000. Charles Schwab Investment Management Inc. boosted its holdings in Ally Financial by 3.1% in the second quarter. Charles Schwab Investment Management Inc. now owns 2,384,980 shares of the financial services provider’s stock valued at $92,895,000 after acquiring an additional 72,444 shares in the last quarter. Sequoia Financial Advisors LLC increased its position in Ally Financial by 19.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 7,029 shares of the financial services provider’s stock valued at $274,000 after purchasing an additional 1,163 shares during the period. Finally, Acadian Asset Management LLC increased its position in Ally Financial by 535.4% during the 2nd quarter. Acadian Asset Management LLC now owns 933,988 shares of the financial services provider’s stock valued at $36,372,000 after purchasing an additional 786,985 shares during the period. 88.76% of the stock is owned by hedge funds and other institutional investors.

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.