Ally Financial (NYSE:ALLY) Cut to “Hold” at Jefferies Financial Group

Ally Financial (NYSE:ALLY – Get Rating) was downgraded by research analysts at Jefferies Financial Group from a “buy” rating to a “hold” rating in a research note issued on Tuesday, MarketBeat reports. They presently have a $25.00 price objective on the financial services provider’s stock, down from their prior price objective of $40.00. Jefferies Financial Group’s target price suggests a potential downside of 8.19% from the stock’s current price. Jefferies Financial Group also issued estimates for Ally Financial’s Q1 2023 earnings at $1.14 EPS and Q2 2023 earnings at $1.07 EPS.

A number of other equities analysts have also recently issued reports on the company. Compass Point cut Ally Financial from a “buy” rating to a “neutral” rating in a report on Wednesday, October 26th. Credit Suisse Group lowered their target price on Ally Financial from $44.00 to $38.00 and set an “outperform” rating for the company in a report on Thursday, October 20th. Royal Bank of Canada lowered their target price on Ally Financial from $37.00 to $32.00 and set an “outperform” rating for the company in a report on Thursday, October 20th. JPMorgan Chase & Co. lowered their target price on Ally Financial from $39.00 to $34.00 and set a “neutral” rating for the company in a report on Tuesday, October 18th. Finally, Keefe, Bruyette & Woods lowered their target price on Ally Financial from $47.00 to $38.00 in a report on Wednesday, October 19th. Four equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, Ally Financial currently has a consensus rating of “Hold” and an average price target of $33.97.

Ally Financial Price Performance

ALLY opened at $27.23 on Tuesday. The business has a fifty day moving average of $25.59 and a 200 day moving average of $29.79. Ally Financial has a 52-week low of $22.34 and a 52-week high of $53.83. The company has a quick ratio of 0.87, a current ratio of 0.88 and a debt-to-equity ratio of 1.64. The stock has a market cap of $8.13 billion, a P/E ratio of 4.59 and a beta of 1.27.

Ally Financial (NYSE:ALLY – Get Rating) last posted its quarterly earnings data on Wednesday, October 19th. The financial services provider reported $1.12 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.73 by ($0.61). Ally Financial had a net margin of 24.78% and a return on equity of 19.51%. The business had revenue of $2.02 billion for the quarter, compared to analysts’ expectations of $2.17 billion. During the same quarter in the previous year, the firm earned $2.16 EPS. Ally Financial’s revenue was up 1.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Ally Financial will post 6 EPS for the current year.

Insider Buying and Selling

In other Ally Financial news, Director Marjorie Magner bought 2,000 shares of Ally Financial stock in a transaction that occurred on Tuesday, October 25th. The shares were bought at an average cost of $27.43 per share, with a total value of $54,860.00. Following the transaction, the director now directly owns 55,603 shares of the company’s stock, valued at approximately $1,525,190.29. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.57% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. State Street Corp increased its position in Ally Financial by 3.3% during the 1st quarter. State Street Corp now owns 8,749,404 shares of the financial services provider’s stock valued at $380,424,000 after buying an additional 281,795 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Ally Financial by 0.4% in the third quarter. Dimensional Fund Advisors LP now owns 6,526,831 shares of the financial services provider’s stock valued at $181,671,000 after purchasing an additional 23,879 shares during the period. Royal Bank of Canada increased its holdings in shares of Ally Financial by 5.6% in the first quarter. Royal Bank of Canada now owns 6,035,703 shares of the financial services provider’s stock valued at $262,433,000 after purchasing an additional 320,049 shares during the period. Thrivent Financial for Lutherans increased its holdings in shares of Ally Financial by 25.2% in the second quarter. Thrivent Financial for Lutherans now owns 3,924,412 shares of the financial services provider’s stock valued at $131,507,000 after purchasing an additional 789,658 shares during the period. Finally, Magnolia Group LLC increased its holdings in shares of Ally Financial by 9.6% in the third quarter. Magnolia Group LLC now owns 3,115,000 shares of the financial services provider’s stock valued at $86,690,000 after purchasing an additional 271,776 shares during the period. 90.35% of the stock is owned by institutional investors and hedge funds.

About Ally Financial

(Get Rating)

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. It operates through four segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations.