Ally Financial (NYSE:ALLY) Stock Price Target Cut by TD Cowen

Ally Financial (NYSE:ALLY) had its target price dropped by stock analysts at TD Cowen from $55.00 to $54.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a “buy” rating on the financial services provider’s stock. TD Cowen’s target price indicates a potential upside of 44.54% from the stock’s previous close.

A number of other research firms have also weighed in on ALLY. Truist Financial reduced 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 Wednesday, September 23rd. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $58.00 price objective on shares of Ally Financial in a research note on Wednesday, July 22nd. Raymond James Financial lowered their target price on Ally Financial from $55.00 to $52.00 and set a “strong-buy” rating for the company in a research report on Tuesday. Royal Bank Of Canada lifted their target price on Ally Financial from $52.00 to $55.00 and gave the stock an “outperform” rating in a report on Friday, July 10th. Finally, Wall Street Zen lowered Ally Financial from a “buy” rating to a “hold” rating in a research report on Monday, June 8th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Ally Financial presently has a consensus rating of “Moderate Buy” and a consensus target price of $51.43.

Ally Financial Price Performance

Shares of ALLY opened at $37.36 on Tuesday. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.26. The stock has a market cap of $11.37 billion, a PE ratio of 8.81, a PEG ratio of 0.24 and a beta of 1.11. Ally Financial has a 12-month low of $35.92 and a 12-month high of $47.29. The business has a 50-day simple moving average of $41.72 and a two-hundred day simple moving average of $42.76.

Ally Financial (NYSE:ALLY) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share for the quarter, missing the consensus estimate of $1.22 by ($0.01). Ally Financial had a return on equity of 11.75% and a net margin of 16.75%.The firm had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.22 billion. During the same quarter last year, the firm posted $0.99 earnings per share. The business’s revenue for the quarter was up 9.8% on a year-over-year basis. Analysts anticipate that Ally Financial will post 5.13 earnings per share for the current fiscal year.

Insider Transactions at Ally Financial

In related news, insider Stephanie Richard sold 5,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total value of $221,150.00. Following the transaction, the insider owned 88,927 shares in the company, valued at $3,933,241.21. The trade was a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.46% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Elevation Wealth Partners LLC boosted its position in shares of Ally Financial by 92.2% during the 3rd quarter. Elevation Wealth Partners LLC now owns 1,005 shares of the financial services provider’s stock valued at $38,000 after purchasing an additional 482 shares in the last quarter. First Community Trust NA bought a new stake in Ally Financial in the third quarter worth approximately $50,000. Versant Capital Management Inc lifted its stake in Ally Financial by 24.5% in the third quarter. Versant Capital Management Inc now owns 8,552 shares of the financial services provider’s stock valued at $322,000 after buying an additional 1,683 shares during the period. QRG Capital Management Inc. lifted its stake in Ally Financial by 7.4% in the second quarter. QRG Capital Management Inc. now owns 17,869 shares of the financial services provider’s stock valued at $821,000 after buying an additional 1,234 shares during the period. Finally, Sequoia Financial Advisors LLC boosted its holdings in shares of Ally Financial by 4.3% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 13,197 shares of the financial services provider’s stock worth $606,000 after buying an additional 547 shares in the last quarter. 88.76% of the stock is owned by institutional investors.

Ally Financial News Roundup

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

• Positive Sentiment: UBS upgraded Ally to a “strong buy”/“buy” rating, maintaining a bullish view despite reducing its price target from $54 to $50. The new target still implies substantial potential upside from recent trading levels. UBS Group Upgrades Ally Financial
• Positive Sentiment: TD Cowen kept a “buy” rating and Raymond James retained a “strong buy” rating, signaling that analysts still view Ally’s valuation as attractive even after lowering their targets to $54 and $52, respectively. Raymond James Lowers Price Target
• Neutral Sentiment: Ally’s third-quarter results, scheduled for October 20, are the next major catalyst. Investors will focus on auto-loan credit performance, funding costs, net interest margins and management’s outlook. Ally Financial Stock Heads Toward October 20 Results
• Neutral Sentiment: CEO commentary emphasizing that “strategy is about choices” highlights management’s efforts to prioritize growth and capital allocation, but the article does not provide a specific new financial target or near-term catalyst. Ally CEO: Strategy is About Choices
• Negative Sentiment: The repeated target reductions from UBS, Raymond James and TD Cowen point to more cautious assumptions about Ally’s earnings, credit conditions or valuation. Separately, recent commentary notes that weak price momentum is offsetting benefits from a steepening yield curve, contributing to investor hesitation. A Steepening Curve Favors the Bank, But Momentum Disagrees

About Ally Financial

Ally Financial Inc (NYSE:ALLY) is a digital financial-services company headquartered in Detroit, Michigan. Its principal businesses include automotive financing, consumer banking, commercial finance and other lending services, primarily serving customers and businesses in the United States.

Through Ally Auto, the company provides retail installment loans and leases for new and used vehicles, along with financing and related services for automotive dealers. Ally Bank offers online checking and savings accounts, money market accounts, certificates of deposit and other deposit products.