Zacks Investment Research Lowers Ally Financial (ALLY) to Hold

Ally Financial (NYSE:ALLY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Shares of Ally Financial have outperformed the industry over the past six months. The company also possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. Also, earnings estimates have been revised upward ahead of the company's fourth quarter 2018 results. The company’s initiatives to diversify revenue base and growth in net finance revenues will likely support profitability in the quarters ahead. Further, improving net interest margin will likely aid the top line growth. However, mounting expenses mainly due to expansion strategy will hamper growth to some extent. Also, high debt levels could restrict the company from procuring additional finance which may negatively impact its liquidity.”

A number of other brokerages have also recently issued reports on ALLY. Oppenheimer set a $35.00 price objective on Ally Financial and gave the stock a “buy” rating in a report on Thursday, October 4th. ValuEngine cut Ally Financial from a “hold” rating to a “sell” rating in a report on Friday, November 2nd. Piper Jaffray Companies set a $34.00 price objective on Ally Financial and gave the stock a “buy” rating in a report on Monday, October 29th. Nomura dropped their price objective on Ally Financial from $28.00 to $27.00 and set a “neutral” rating on the stock in a report on Friday, October 26th. Finally, Barclays dropped their price objective on Ally Financial from $35.00 to $34.00 and set an “overweight” rating on the stock in a report on Wednesday, January 2nd. Seven research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average price target of $32.07.

Shares of ALLY opened at $25.14 on Monday. The stock has a market cap of $10.21 billion, a P/E ratio of 10.52, a P/E/G ratio of 0.55 and a beta of 1.29. The company has a debt-to-equity ratio of 3.48, a quick ratio of 1.18 and a current ratio of 1.18. Ally Financial has a 52-week low of $20.60 and a 52-week high of $31.29.

Ally Financial (NYSE:ALLY) last issued its quarterly earnings data on Thursday, October 25th. The financial services provider reported $0.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.80 by $0.11. The business had revenue of $1.51 billion for the quarter, compared to analysts’ expectations of $1.48 billion. Ally Financial had a return on equity of 10.25% and a net margin of 16.87%. As a group, research analysts expect that Ally Financial will post 3.24 EPS for the current year.

In other Ally Financial news, CAO David J. Debrunner sold 25,000 shares of the firm’s stock in a transaction dated Thursday, November 29th. The stock was sold at an average price of $26.35, for a total value of $658,750.00. Following the sale, the chief accounting officer now owns 102,155 shares of the company’s stock, valued at approximately $2,691,784.25. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.19% of the company’s stock.

Large investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC purchased a new stake in shares of Ally Financial in the 2nd quarter valued at about $149,000. NEXT Financial Group Inc purchased a new stake in shares of Ally Financial in the 3rd quarter valued at about $153,000. Legacy Financial Advisors Inc. raised its holdings in shares of Ally Financial by 58.1% in the 3rd quarter. Legacy Financial Advisors Inc. now owns 6,152 shares of the financial services provider’s stock valued at $162,000 after acquiring an additional 2,261 shares in the last quarter. First Hawaiian Bank purchased a new stake in shares of Ally Financial in the 3rd quarter valued at about $268,000. Finally, Quantbot Technologies LP purchased a new position in shares of Ally Financial during the 3rd quarter valued at about $273,000. 98.26% of the stock is currently owned by hedge funds and other institutional investors.

About Ally Financial

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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