Ally Financial (NYSE:ALLY) Insider Kathleen Patterson Sells 12,831 Shares of Company Stock

Ally Financial Inc. (NYSE:ALLY) insider Kathleen Patterson sold 12,831 shares of the stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $38.65, for a total value of $495,918.15. Following the transaction, the insider owned 67,781 shares of the company’s stock, valued at approximately $2,619,735.65. This represents a 15.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Ally Financial Stock Up 1.5%

Shares of NYSE:ALLY opened at $39.25 on Friday. The company has a market capitalization of $11.94 billion, a price-to-earnings ratio of 8.15, a PEG ratio of 0.29 and a beta of 1.11. Ally Financial Inc. has a 12-month low of $35.92 and a 12-month high of $47.29. The business has a 50-day moving average price of $40.35 and a 200 day moving average price of $42.67. The company has a current ratio of 0.94, a quick ratio of 0.92 and a debt-to-equity ratio of 1.45.

Ally Financial (NYSE:ALLY) last posted its earnings results on Tuesday, October 20th. The financial services provider reported $1.34 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.01. The company had revenue of $2.35 billion for the quarter, compared to analysts’ expectations of $2.31 billion. Ally Financial had a net margin of 16.84% and a return on equity of 12.11%. Ally Financial’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.15 earnings per share. Sell-side analysts expect that Ally Financial Inc. will post 4.98 EPS for the current year.

Ally Financial Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Monday, November 2nd will be paid a $0.35 dividend. This is a positive change from Ally Financial’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.6%. Ally Financial’s payout ratio is presently 28.30%.

Key Stories Impacting Ally Financial

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

• Positive Sentiment: Ally reported third-quarter earnings of $1.34 per share, slightly above the $1.33 consensus estimate, while revenue rose 6.1% year over year to $2.35 billion. Management also raised its dividend by 17%, supporting the income-investment case. Ally Reports Q3 Earnings, Raises Dividend 17%
• Positive Sentiment: Management expects full-year net interest margin of 3.6%-3.65% and raised its average earning-asset growth outlook to 5%-6%, indicating improving loan and balance-sheet momentum. Ally NIM and Growth Outlook
• Positive Sentiment: JPMorgan raised its price target to $44 and maintained an overweight rating, while TD Cowen retained a buy rating despite reducing its target to $52. These targets imply substantial potential upside from recent trading levels. ALLY Q3 Deep Dive
• Neutral Sentiment: An insider sold 12,831 shares, but the filing states the transaction covered tax withholding tied to vested equity awards, making it a limited signal of management sentiment. SEC Insider Transaction Filing
• Negative Sentiment: Evercore ISI downgraded Ally from outperform/strong-buy to in-line/hold, citing net interest margin pressure and credit-cost risk. Auto delinquencies and charge-offs are rising alongside originations, creating concern that growth may come with weaker asset quality. Evercore ISI Ally Downgrade

Analysts Set New Price Targets

Several equities analysts have recently commented on ALLY shares. The Goldman Sachs Group set a $45.00 price objective on shares of Ally Financial in a report on Tuesday, October 6th. UBS Group dropped their target price on shares of Ally Financial from $54.00 to $50.00 and set a “buy” rating for the company in a report on Monday, October 5th. Raymond James Financial dropped their target price on shares of Ally Financial from $55.00 to $52.00 and set a “strong-buy” rating for the company in a report on Tuesday, October 6th. Evercore set a $40.00 target price on Ally Financial in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft set a $56.00 price target on Ally Financial in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $48.21.

Hedge Funds Weigh In On Ally Financial

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Ally Financial during the second quarter worth about $1,315,659,000. Berkshire Hathaway Inc purchased a new position in shares of Ally Financial in the second quarter valued at approximately $1,240,650,000. Dimensional Fund Advisors LP boosted its stake in shares of Ally Financial by 3.6% in the first quarter. Dimensional Fund Advisors LP now owns 9,018,580 shares of the financial services provider’s stock valued at $353,776,000 after purchasing an additional 309,638 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Ally Financial by 11.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 6,783,947 shares of the financial services provider’s stock valued at $266,134,000 after purchasing an additional 712,443 shares in the last quarter. Finally, Donald Smith & CO. Inc. acquired a new position in shares of Ally Financial in the second quarter valued at approximately $172,509,000. 88.76% of the stock is owned by institutional investors and hedge funds.

About Ally Financial

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan, and traded on the New York Stock Exchange under the symbol ALLY. The company primarily serves consumers, automotive dealers and businesses in the United States through online and branchless banking and financing platforms.

Ally’s automotive finance business provides retail installment loans and leases to consumers and floorplan financing and other services to automotive dealers. Its consumer banking operations, conducted through Ally Bank, offer deposit products such as savings accounts, money market accounts and certificates of deposit, along with consumer lending products.

The company also provides credit cards and commercial financing, and offers investment and brokerage services through Ally Invest.