Ally Financial (ALLY) Downgraded to Hold at Zacks Investment Research

Share on StockTwits

Zacks Investment Research downgraded shares of Ally Financial (NYSE:ALLY) from a buy rating to a hold rating in a research report released on Monday, Zacks.com reports.

According to Zacks, “Shares of Ally Financial have outperformed the industry over the past six months. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company’s first-quarter 2019 results benefited from growth in revenues, partly offset by higher expenses and provisions. Initiatives to diversify revenue base, rise in consumer loan demand, higher interest rates and growth in net finance revenues will likely further support the company’s profitability. Moreover, its steady capital deployment actions reflect strong balance sheet position. However, mounting expenses (mainly due to expansion strategy) will likely hurt bottom-line growth in the near term. Also, the use of high debt remains a major concern for the company as it might hamper financials and limit flexibility.”

Other equities research analysts have also recently issued reports about the stock. Morgan Stanley increased their price objective on shares of Ally Financial from $30.00 to $32.00 and gave the stock an equal weight rating in a research report on Monday, April 22nd. Sandler O’Neill raised shares of Ally Financial from a hold rating to a buy rating and raised their price objective for the company from $29.00 to $33.00 in a research note on Tuesday, February 26th. They noted that the move was a valuation call. BMO Capital Markets raised their price objective on shares of Ally Financial to $39.00 and gave the stock a market perform rating in a report on Monday, April 22nd. Oppenheimer set a $33.00 price objective on shares of Ally Financial and gave the stock a buy rating in a report on Wednesday, April 17th. Finally, BTIG Research boosted their price objective on shares of Ally Financial to $32.00 and gave the company a buy rating in a research note on Wednesday, January 23rd. Six equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. Ally Financial currently has an average rating of Buy and an average price target of $32.92.

Shares of NYSE:ALLY opened at $29.15 on Monday. The company has a market capitalization of $11.41 billion, a P/E ratio of 8.73, a P/E/G ratio of 0.57 and a beta of 1.38. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 3.03. Ally Financial has a one year low of $20.60 and a one year high of $30.27.

Ally Financial (NYSE:ALLY) last issued its quarterly earnings data on Thursday, April 18th. The financial services provider reported $0.80 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.79 by $0.01. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.53 billion. Ally Financial had a net margin of 23.12% and a return on equity of 10.90%. The firm’s revenue was up 13.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.68 EPS. On average, research analysts forecast that Ally Financial will post 3.62 earnings per share for the current fiscal year.

Ally Financial declared that its Board of Directors has authorized a stock repurchase plan on Monday, April 1st that authorizes the company to repurchase $1.25 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 10.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 15th. Shareholders of record on Wednesday, May 1st were paid a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, April 30th. This represents a $0.68 annualized dividend and a dividend yield of 2.33%. Ally Financial’s dividend payout ratio (DPR) is currently 20.36%.

In other Ally Financial news, CEO Jeffrey Jonathan Brown sold 97,311 shares of Ally Financial stock in a transaction that occurred on Thursday, February 21st. The stock was sold at an average price of $27.01, for a total value of $2,628,370.11. Following the transaction, the chief executive officer now directly owns 632,569 shares in the company, valued at approximately $17,085,688.69. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO David J. Debrunner sold 2,222 shares of Ally Financial stock in a transaction that occurred on Wednesday, May 1st. The shares were sold at an average price of $29.80, for a total value of $66,215.60. Following the completion of the transaction, the chief accounting officer now owns 110,201 shares in the company, valued at $3,283,989.80. The disclosure for this sale can be found here. Insiders sold a total of 101,755 shares of company stock worth $2,756,202 over the last quarter. Company insiders own 0.35% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the company. Harel Insurance Investments & Financial Services Ltd. acquired a new position in Ally Financial during the first quarter worth $31,000. Private Capital Group LLC raised its holdings in Ally Financial by 53.5% during the fourth quarter. Private Capital Group LLC now owns 1,820 shares of the financial services provider’s stock worth $41,000 after purchasing an additional 634 shares during the last quarter. Enlightenment Research LLC acquired a new position in Ally Financial during the fourth quarter worth $54,000. Truvestments Capital LLC acquired a new position in Ally Financial during the first quarter worth $74,000. Finally, Oregon Public Employees Retirement Fund raised its holdings in Ally Financial by 2,129.3% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 2,394,346 shares of the financial services provider’s stock worth $106,000 after purchasing an additional 2,286,941 shares during the last quarter.

About Ally Financial

Ally Financial Inc provides various financial products and services to consumers, businesses, automotive dealers, and corporate customers primarily in the United States and Canada. It operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.

Read More: The Structure of a Futures Contract

Get a free copy of the Zacks research report on Ally Financial (ALLY)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Ally Financial (NYSE:ALLY)

Receive News & Ratings for Ally Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ally Financial and related companies with MarketBeat.com's FREE daily email newsletter.