Ally Financial (NYSE:ALLY) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Ally Financial’s shares have outperformed the industry over the past six months. The performance was supported by the company’s impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The gradual improvement in net interest margin (NIM) with the rise in interest rates will likely continue to support the company’s top-line growth. Also, the company’s initiatives to diversify revenue base will support profitability in the quarters ahead. Further, its steady capital deployment plan reflects a strong balance sheet position. However, persistently increasing expenses are expected to hurt bottom-line growth to some extent. Also, the company's use of high debt levels might hamper its flexibility and restrict it from procuring additional finance for working capital and other purposes.”
Several other equities research analysts also recently weighed in on ALLY. Morgan Stanley reiterated an “equal weight” rating and issued a $28.00 price target (up from $26.00) on shares of Ally Financial in a report on Thursday, November 30th. Wells Fargo began coverage on Ally Financial in a report on Friday, December 1st. They issued an “outperform” rating and a $30.00 price target on the stock. Goldman Sachs began coverage on Ally Financial in a report on Monday, December 4th. They set a “buy” rating and a $32.00 price objective on the stock. Piper Jaffray Companies restated a “buy” rating and set a $32.00 price objective on shares of Ally Financial in a report on Thursday, December 7th. Finally, Keefe, Bruyette & Woods restated a “buy” rating and set a $35.00 price objective on shares of Ally Financial in a report on Friday, December 22nd. One analyst has rated the stock with a sell rating, five have issued a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $32.41.
Ally Financial (NYSE:ALLY) last issued its quarterly earnings results on Tuesday, January 30th. The financial services provider reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.11. Ally Financial had a return on equity of 8.10% and a net margin of 13.73%. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same period in the prior year, the business posted $0.54 earnings per share. The company’s revenue for the quarter was up 7.7% on a year-over-year basis. research analysts expect that Ally Financial will post 2.97 EPS for the current year.
A number of institutional investors and hedge funds have recently modified their holdings of ALLY. Tiedemann Wealth Management LLC lifted its position in Ally Financial by 70.4% during the 3rd quarter. Tiedemann Wealth Management LLC now owns 20,169 shares of the financial services provider’s stock worth $110,000 after acquiring an additional 8,332 shares during the period. Harvest Fund Management Co. Ltd purchased a new position in shares of Ally Financial during the 4th quarter valued at about $132,000. Meeder Asset Management Inc. purchased a new position in shares of Ally Financial during the 4th quarter valued at about $140,000. Global Trust Asset Management LLC purchased a new position in shares of Ally Financial during the 4th quarter valued at about $163,000. Finally, Acadian Asset Management LLC purchased a new position in shares of Ally Financial during the 4th quarter valued at about $178,000.
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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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