Ally Financial (NYSE:ALLY) Shares Gap Up Following Strong Earnings

Ally Financial Inc. (NYSE:ALLY)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $36.27, but opened at $37.49. Ally Financial shares last traded at $38.97, with a volume of 1,024,861 shares traded.

The financial services provider reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.12. The business had revenue of $1.99 billion for the quarter, compared to analysts’ expectations of $1.96 billion. Ally Financial had a return on equity of 9.41% and a net margin of 12.42%. The business’s revenue was down 5.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.82 EPS.

Ally Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Wednesday, May 1st will be given a $0.30 dividend. The ex-dividend date of this dividend is Tuesday, April 30th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.07%. Ally Financial’s dividend payout ratio is currently 40.13%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ALLY. Royal Bank of Canada reissued an “outperform” rating and issued a $40.00 price target on shares of Ally Financial in a research report on Monday, January 22nd. Wells Fargo & Company boosted their price target on Ally Financial from $29.00 to $33.00 and gave the stock an “underweight” rating in a research report on Wednesday, April 10th. Evercore ISI boosted their price target on Ally Financial from $41.00 to $43.00 and gave the stock an “in-line” rating in a research report on Thursday, March 28th. TheStreet raised Ally Financial from a “c+” rating to a “b-” rating in a research report on Thursday, January 11th. Finally, Deutsche Bank Aktiengesellschaft started coverage on Ally Financial in a research report on Wednesday, January 10th. They issued a “buy” rating and a $47.00 price objective on the stock. Four investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $38.47.

Institutional Investors Weigh In On Ally Financial

Hedge funds have recently added to or reduced their stakes in the stock. Salem Investment Counselors Inc. raised its stake in Ally Financial by 115.0% during the 1st quarter. Salem Investment Counselors Inc. now owns 645 shares of the financial services provider’s stock valued at $28,000 after buying an additional 345 shares during the last quarter. Rise Advisors LLC purchased a new stake in shares of Ally Financial in the 1st quarter worth $32,000. Northwest Financial Advisors purchased a new stake in shares of Ally Financial in the 4th quarter worth $31,000. Quarry LP boosted its holdings in Ally Financial by 165.7% in the 4th quarter. Quarry LP now owns 959 shares of the financial services provider’s stock worth $33,000 after buying an additional 598 shares during the period. Finally, NBC Securities Inc. bought a new position in Ally Financial in the 3rd quarter worth $26,000. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

Ally Financial Price Performance

The company has a market cap of $11.88 billion, a P/E ratio of 13.07, a P/E/G ratio of 0.53 and a beta of 1.40. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.90 and a current ratio of 0.90. The firm’s fifty day moving average is $37.71 and its two-hundred day moving average is $32.92.

Ally Financial Company Profile

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.