Ally Financial (ALLY) Rating Increased to Buy at Zacks Investment Research

Ally Financial (NYSE:ALLY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The brokerage presently has a $31.00 price target on the financial services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 13.30% from the stock’s previous close.

According to Zacks, “Shares of Ally Financial have outperformed the industry over the past 12 months. The company also possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. The company’s initiatives to diversify revenue base will likely support profitability in the quarters ahead. While persistently increasing expenses and high debt levels remain major concerns, improving net interest margin (driven by higher rates and loan growth) will likely aid top-line growth. Also, the company's enhanced capital deployment plan reflects strong balance sheet position.”

A number of other research analysts also recently weighed in on ALLY. Stephens restated a “hold” rating and set a $32.00 price target on shares of Ally Financial in a report on Friday, July 27th. Instinet initiated coverage on shares of Ally Financial in a report on Tuesday, June 19th. They set a “neutral” rating and a $28.00 price target on the stock. Nomura initiated coverage on shares of Ally Financial in a report on Tuesday, June 19th. They set a “neutral” rating and a $28.00 price target on the stock. Bank of America upgraded shares of Ally Financial from a “neutral” rating to a “buy” rating and raised their price target for the company from $33.00 to $35.00 in a report on Monday, July 30th. Finally, Janney Montgomery Scott upgraded shares of Ally Financial from a “neutral” rating to a “buy” rating and set a $36.00 price target on the stock in a report on Friday, June 29th. Seven analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. Ally Financial presently has an average rating of “Buy” and an average target price of $32.75.

Shares of NYSE:ALLY traded up $0.06 during trading on Tuesday, reaching $27.36. 116,971 shares of the company traded hands, compared to its average volume of 2,828,157. The firm has a market capitalization of $11.62 billion, a P/E ratio of 11.42, a price-to-earnings-growth ratio of 0.70 and a beta of 1.34. Ally Financial has a 1-year low of $23.15 and a 1-year high of $31.29. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 3.60.

Ally Financial (NYSE:ALLY) last issued its earnings results on Thursday, July 26th. The financial services provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.71 by $0.12. The company had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.47 billion. Ally Financial had a net margin of 15.62% and a return on equity of 9.45%. During the same quarter last year, the business posted $0.55 EPS. equities research analysts expect that Ally Financial will post 3.09 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Freestone Capital Holdings LLC grew its position in Ally Financial by 4.9% in the 1st quarter. Freestone Capital Holdings LLC now owns 40,867 shares of the financial services provider’s stock worth $1,110,000 after purchasing an additional 1,904 shares during the last quarter. Putnam Investments LLC grew its position in Ally Financial by 0.3% in the 2nd quarter. Putnam Investments LLC now owns 839,837 shares of the financial services provider’s stock worth $22,062,000 after purchasing an additional 2,225 shares during the last quarter. First Republic Investment Management Inc. grew its position in Ally Financial by 20.6% in the 2nd quarter. First Republic Investment Management Inc. now owns 13,423 shares of the financial services provider’s stock worth $353,000 after purchasing an additional 2,292 shares during the last quarter. Stifel Financial Corp grew its position in Ally Financial by 13.4% in the 1st quarter. Stifel Financial Corp now owns 20,086 shares of the financial services provider’s stock worth $547,000 after purchasing an additional 2,381 shares during the last quarter. Finally, First Mercantile Trust Co. grew its position in Ally Financial by 27.6% in the 2nd quarter. First Mercantile Trust Co. now owns 11,230 shares of the financial services provider’s stock worth $295,000 after purchasing an additional 2,430 shares during the last quarter. Hedge funds and other institutional investors own 98.96% of the company’s stock.

Ally Financial Company Profile

Ally Financial Inc provides various financial products and services for consumers, businesses, automotive dealers, and corporate clients in the United States and Canada. The company operates Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.

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