Ally Financial (NYSE:ALLY) Shares Gap Down – What’s Next?

Ally Financial Inc. (NYSE:ALLY)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $42.42, but opened at $40.49. Ally Financial shares last traded at $42.14, with a volume of 1,431,753 shares changing hands.

Analysts Set New Price Targets

Several equities analysts recently issued reports on ALLY shares. Cowen reiterated a “buy” rating on shares of Ally Financial in a research report on Thursday, January 8th. JPMorgan Chase & Co. boosted their target price on shares of Ally Financial from $43.00 to $48.00 and gave the company an “overweight” rating in a report on Monday, January 12th. Wall Street Zen lowered shares of Ally Financial from a “buy” rating to a “hold” rating in a research note on Sunday, November 9th. Wells Fargo & Company upgraded shares of Ally Financial from a “hold” rating to an “overweight” rating in a report on Wednesday, December 17th. Finally, The Goldman Sachs Group reiterated a “neutral” rating and set a $55.00 target price on shares of Ally Financial in a report on Tuesday, January 6th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Ally Financial currently has an average rating of “Moderate Buy” and an average price target of $49.44.

Ally Financial Stock Up 0.7%

The company has a market cap of $13.15 billion, a PE ratio of 25.67, a PEG ratio of 0.21 and a beta of 1.17. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.31. The company’s fifty day moving average is $43.27 and its 200-day moving average is $41.10.

Ally Financial (NYSE:ALLY) last posted its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $1.02 by $0.07. The company had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.15 billion. Ally Financial had a return on equity of 9.96% and a net margin of 8.10%.Ally Financial’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.78 earnings per share. On average, analysts predict that Ally Financial Inc. will post 3.57 EPS for the current year.

Ally Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Shareholders of record on Monday, February 2nd will be given a $0.30 dividend. The ex-dividend date is Monday, February 2nd. This represents a $1.20 annualized dividend and a yield of 2.8%. Ally Financial’s dividend payout ratio (DPR) is presently 72.29%.

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

Institutional Investors Weigh In On Ally Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALLY. Allworth Financial LP increased its stake in shares of Ally Financial by 385.2% in the second quarter. Allworth Financial LP now owns 752 shares of the financial services provider’s stock worth $29,000 after purchasing an additional 597 shares in the last quarter. Mather Group LLC. purchased a new stake in Ally Financial in the 3rd quarter worth $31,000. Hantz Financial Services Inc. lifted 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 valued at $32,000 after acquiring an additional 715 shares in the last quarter. Westside Investment Management Inc. boosted its stake in shares of Ally Financial by 116.8% in the second quarter. Westside Investment Management Inc. now owns 837 shares of the financial services provider’s stock worth $34,000 after acquiring an additional 451 shares during the period. Finally, MAI Capital Management grew its position in shares of Ally Financial by 45.1% during the second quarter. MAI Capital Management now owns 975 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 303 shares in the last quarter. 88.76% of the stock is owned by hedge funds and other institutional investors.

About Ally Financial

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.