Ally Financial (NYSE:ALLY) Posts Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Ally Financial (NYSE:ALLY) issued its earnings results on Thursday. The financial services provider reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.15, Zacks reports. The business had revenue of $1.54 billion during the quarter, compared to the consensus estimate of $2.04 billion. Ally Financial had a return on equity of 9.31% and a net margin of 11.29%. During the same period in the previous year, the company posted $0.45 earnings per share.

Ally Financial Stock Performance

Ally Financial stock traded down $0.57 during mid-day trading on Thursday, reaching $31.61. The company’s stock had a trading volume of 8,041,324 shares, compared to its average volume of 3,544,774. The firm’s fifty day moving average price is $35.39 and its two-hundred day moving average price is $36.22. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.93 and a current ratio of 0.93. Ally Financial has a 12-month low of $29.52 and a 12-month high of $45.46. The company has a market capitalization of $9.71 billion, a P/E ratio of 12.16, a PEG ratio of 0.32 and a beta of 1.12.

Ally Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 15th. Investors of record on Thursday, May 1st will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 3.80%. The ex-dividend date is Thursday, May 1st. Ally Financial’s dividend payout ratio (DPR) is presently 46.15%.

Insider Activity

In other news, CEO Michael George Rhodes purchased 25,634 shares of the business’s stock in a transaction on Monday, January 27th. The stock was purchased at an average cost of $39.09 per share, with a total value of $1,002,033.06. Following the acquisition, the chief executive officer now directly owns 25,634 shares in the company, valued at approximately $1,002,033.06. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Russell E. Hutchinson purchased 19,100 shares of the firm’s stock in a transaction dated Friday, January 24th. The stock was purchased at an average cost of $39.45 per share, for a total transaction of $753,495.00. Following the acquisition, the chief financial officer now owns 202,845 shares of the company’s stock, valued at approximately $8,002,235.25. This trade represents a 10.39 % increase in their position. The disclosure for this purchase can be found here. 0.67% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on ALLY shares. Truist Financial reduced their price target on shares of Ally Financial from $47.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 4th. Royal Bank of Canada reduced their price objective on Ally Financial from $45.00 to $40.00 and set an “outperform” rating for the company in a research note on Monday. The firm anticipates consistent though seasonally-driven fundamental trends, with lower loans and volumes in the quarter, the analyst tells investors in a research note. RBC also expects stable credit trends, with improvement in year over year delinquencies for most names, warning however that Q1 loan loss provisions and reserve levels may reflect the recent more uncertain environment. JPMorgan Chase & Co. cut their target price on Ally Financial from $43.00 to $36.00 and set an “overweight” rating on the stock in a report on Tuesday, April 8th. The Goldman Sachs Group upped their price objective on shares of Ally Financial from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Tuesday, April 1st. Finally, Barclays raised their price objective on shares of Ally Financial from $36.00 to $44.00 and gave the company an “equal weight” rating in a research note on Monday, January 6th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and ten have assigned a buy rating to the company’s stock. According to MarketBeat.com, Ally Financial currently has an average rating of “Hold” and a consensus target price of $41.76.

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.