Ally Financial (ALLY) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Ally Financial (NYSE:ALLY) from a buy rating to a hold rating in a report published on Wednesday.

According to Zacks, “Shares of Ally Financial have significantly 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. Also, improving net interest margin (driven by higher rates and loan growth) will likely aid top-line growth. However, persistently increasing expenses remains a major concern. Further, high debt levels may adversely impact its access to liquidity.”

ALLY has been the topic of several other reports. 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 started 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 started 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 boosted their price target for the stock 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. Eight analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. Ally Financial currently has a consensus rating of Buy and an average price target of $32.75.

Ally Financial stock opened at $26.60 on Wednesday. Ally Financial has a fifty-two week low of $23.64 and a fifty-two week high of $31.29. The stock has a market cap of $11.50 billion, a P/E ratio of 11.13, a PEG ratio of 0.70 and a beta of 1.34. The company has a debt-to-equity ratio of 3.60, a quick ratio of 1.21 and a current ratio of 1.21.

Ally Financial (NYSE:ALLY) last released its quarterly earnings results on Thursday, July 26th. The financial services provider reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.71 by $0.12. Ally Financial had a net margin of 15.62% and a return on equity of 9.45%. The business had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.47 billion. During the same period in the previous year, the company earned $0.55 earnings per share. research analysts anticipate that Ally Financial will post 3.09 earnings per share for the current year.

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. raised its position in shares of Ally Financial by 8.8% in the second quarter. BlackRock Inc. now owns 26,537,339 shares of the financial services provider’s stock valued at $697,136,000 after purchasing an additional 2,148,484 shares during the period. Unigestion Holding SA bought a new stake in shares of Ally Financial in the second quarter valued at approximately $32,286,000. LSV Asset Management raised its position in shares of Ally Financial by 32.6% in the second quarter. LSV Asset Management now owns 4,152,079 shares of the financial services provider’s stock valued at $109,075,000 after purchasing an additional 1,021,238 shares during the period. Janus Henderson Group PLC raised its position in shares of Ally Financial by 86.2% in the second quarter. Janus Henderson Group PLC now owns 2,163,208 shares of the financial services provider’s stock valued at $56,827,000 after purchasing an additional 1,001,501 shares during the period. Finally, Platinum Investment Management Ltd. raised its position in shares of Ally Financial by 26.5% in the first quarter. Platinum Investment Management Ltd. now owns 3,977,100 shares of the financial services provider’s stock valued at $107,978,000 after purchasing an additional 834,200 shares during the period. 98.96% of the stock is currently owned by institutional investors and hedge funds.

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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