Ally Financial Inc. (ALLY) Stock Rating Upgraded by Zacks Investment Research
Ally Financial Inc. (NYSE:ALLY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The firm presently has a $26.00 price target on the financial services provider’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 11.40% from the stock’s current price.
According to Zacks, “Ally Financial’s shares have outperformed the industry over the past six months. The performance was supported by the company’s decent earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. The company’s efforts to diversify its revenue sources by enhancing digital offerings and introducing new products will help bottom-line growth. Further, the company’s encouraging capital deployment activities reflect a strong balance sheet position. However, persistently increasing expenses and high debt levels are the near-term concerns for the company.”
ALLY has been the subject of a number of other research reports. Piper Jaffray Companies reiterated a “buy” rating on shares of Ally Financial in a research note on Friday, September 1st. BidaskClub upgraded shares of Ally Financial from a “strong sell” rating to a “sell” rating in a research note on Wednesday, June 14th. Jefferies Group LLC reiterated a “buy” rating and set a $28.00 target price on shares of Ally Financial in a research note on Wednesday, August 23rd. TheStreet upgraded shares of Ally Financial from a “c” rating to a “b-” rating in a research note on Wednesday, July 19th. Finally, Keefe, Bruyette & Woods reiterated a “buy” rating and set a $24.00 target price on shares of Ally Financial in a research note on Tuesday, July 4th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of “Buy” and an average target price of $25.62.
Shares of Ally Financial (NYSE:ALLY) opened at 23.83 on Tuesday. The stock has a market cap of $11.43 billion, a price-to-earnings ratio of 12.15 and a beta of 1.42. Ally Financial has a one year low of $16.68 and a one year high of $24.04. The stock’s 50 day moving average price is $22.50 and its 200 day moving average price is $20.84.
Ally Financial (NYSE:ALLY) last issued its earnings results on Thursday, July 27th. The financial services provider reported $0.58 EPS for the quarter, topping analysts’ consensus estimates of $0.53 by $0.05. The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.42 billion. Ally Financial had a net margin of 13.83% and a return on equity of 7.55%. During the same quarter in the previous year, the firm posted $0.54 earnings per share. Analysts forecast that Ally Financial will post $2.27 earnings per share for the current year.
Ally Financial announced that its Board of Directors has authorized a share repurchase plan on Wednesday, June 28th that authorizes the company to repurchase $760.00 million in shares. This repurchase authorization authorizes the financial services provider to purchase up to 7.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.
Institutional investors and hedge funds have recently made changes to their positions in the stock. American Century Companies Inc. purchased a new stake in Ally Financial in the first quarter valued at $4,325,000. Banced Corp lifted its position in Ally Financial by 5.3% in the second quarter. Banced Corp now owns 22,661 shares of the financial services provider’s stock valued at $474,000 after acquiring an additional 1,139 shares during the last quarter. Chicago Equity Partners LLC lifted its position in Ally Financial by 104.6% in the second quarter. Chicago Equity Partners LLC now owns 213,495 shares of the financial services provider’s stock valued at $4,462,000 after acquiring an additional 109,145 shares during the last quarter. Capstone Asset Management Co. purchased a new stake in Ally Financial in the second quarter valued at $208,000. Finally, Mitsubishi UFJ Trust & Banking Corp lifted its position in Ally Financial by 6.4% in the second quarter. Mitsubishi UFJ Trust & Banking Corp now owns 940,837 shares of the financial services provider’s stock valued at $19,663,000 after acquiring an additional 56,337 shares during the last quarter.
About Ally Financial
Ally Financial Inc is a digital financial services company. The Company is a bank and financial holding company. Its segments include Automotive Finance operations, Insurance operations, Mortgage Finance operations, Corporate Finance operations, and Corporate and Other. The Automotive Finance operations segment provides the United States-based automotive financing services to consumers and automotive dealers, and automotive and equipment financing services to companies and municipalities.
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