Ally Financial (NYSE:ALLY) Shares Gap Up After Better-Than-Expected Earnings

Shares of Ally Financial Inc. (NYSE:ALLY - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $38.18, but opened at $41.38. Ally Financial shares last traded at $40.10, with a volume of 1,788,158 shares.

The financial services provider reported $0.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.57 by $0.21. Ally Financial had a return on equity of 8.39% and a net margin of 10.84%. The firm had revenue of $2.09 billion for the quarter, compared to analysts' expectations of $2,021,808.41 billion. During the same quarter last year, the business earned $0.45 earnings per share. The company's revenue was up 3.6% compared to the same quarter last year.

Ally Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 14th. Shareholders of record on Friday, January 31st will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 3.03%. The ex-dividend date of this dividend is Friday, January 31st. Ally Financial's dividend payout ratio (DPR) is currently 48.00%.

Analyst Upgrades and Downgrades

ALLY has been the topic of a number of research analyst reports. StockNews.com raised Ally Financial from a "hold" rating to a "buy" rating in a research report on Wednesday, January 15th. Wells Fargo & Company dropped their price target on Ally Financial from $37.00 to $32.00 and set an "underweight" rating on the stock in a research report on Thursday, September 26th. Keefe, Bruyette & Woods raised their price target on Ally Financial from $44.00 to $56.00 and gave the stock an "outperform" rating in a research report on Monday, December 9th. JPMorgan Chase & Co. dropped their price target on Ally Financial from $42.00 to $40.00 and set an "overweight" rating on the stock in a research report on Tuesday, January 14th. Finally, Evercore ISI dropped their target price on Ally Financial from $47.00 to $38.00 and set an "in-line" rating on the stock in a research report on Monday, October 7th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and ten have issued a buy rating to the company's stock. According to data from MarketBeat, Ally Financial currently has an average rating of "Hold" and an average target price of $42.53.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ALLY. Venturi Wealth Management LLC boosted its stake in Ally Financial by 153.9% in the 3rd quarter. Venturi Wealth Management LLC now owns 952 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 577 shares during the period. Allworth Financial LP raised its holdings in Ally Financial by 41.9% in the 3rd quarter. Allworth Financial LP now owns 1,426 shares of the financial services provider's stock valued at $51,000 after acquiring an additional 421 shares in the last quarter. UMB Bank n.a. raised its holdings in shares of Ally Financial by 218.8% during the 4th quarter. UMB Bank n.a. now owns 1,546 shares of the financial services provider's stock worth $56,000 after buying an additional 1,061 shares in the last quarter. Quarry LP raised its holdings in shares of Ally Financial by 311.4% during the 2nd quarter. Quarry LP now owns 1,510 shares of the financial services provider's stock worth $60,000 after buying an additional 1,143 shares in the last quarter. Finally, Brooklyn Investment Group acquired a new position in shares of Ally Financial during the 3rd quarter worth $63,000. 88.76% of the stock is currently owned by institutional investors.

Ally Financial Price Performance

The company has a debt-to-equity ratio of 1.36, a quick ratio of 0.92 and a current ratio of 0.92. The company has a market cap of $12.08 billion, a price-to-earnings ratio of 15.85, a PEG ratio of 0.39 and a beta of 1.44. The business has a fifty day moving average price of $36.86 and a 200 day moving average price of $37.92.

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.