Ally Financial (NYSE:ALLY) Shares Gap Up After Earnings Beat

Shares of Ally Financial Inc. (NYSE:ALLY) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $36.27, but opened at $37.49. Ally Financial shares last traded at $38.97, with a volume of 1,024,861 shares traded.

The financial services provider reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.12. Ally Financial had a return on equity of 9.41% and a net margin of 12.42%. The firm had revenue of $1.99 billion for the quarter, compared to the consensus estimate of $1.96 billion. During the same period in the prior year, the firm earned $0.82 EPS. The firm’s revenue was down 5.4% on a year-over-year basis.

Ally Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 15th. Shareholders of record on Wednesday, May 1st will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 3.07%. The ex-dividend date of this dividend is Tuesday, April 30th. Ally Financial’s dividend payout ratio is currently 40.13%.

Analyst Ratings Changes

Several brokerages have weighed in on ALLY. TheStreet raised Ally Financial from a “c+” rating to a “b-” rating in a research report on Thursday, January 11th. Raymond James downgraded Ally Financial from a “market perform” rating to an “underperform” rating in a research report on Friday, January 5th. Wells Fargo & Company increased their price target on Ally Financial from $29.00 to $33.00 and gave the stock an “underweight” rating in a research report on Wednesday, April 10th. Deutsche Bank Aktiengesellschaft began coverage on Ally Financial in a research report on Wednesday, January 10th. They set a “buy” rating and a $47.00 price target on the stock. Finally, BMO Capital Markets increased their price target on Ally Financial from $36.00 to $37.00 and gave the stock a “market perform” rating in a research report on Friday. Four equities research analysts have rated the stock with a sell rating, eight have given a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $38.47.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Salem Investment Counselors Inc. lifted its stake in Ally Financial by 115.0% in the 1st quarter. Salem Investment Counselors Inc. now owns 645 shares of the financial services provider’s stock worth $28,000 after purchasing an additional 345 shares in the last quarter. Rise Advisors LLC purchased a new position in Ally Financial in the 1st quarter worth approximately $32,000. Northwest Financial Advisors purchased a new position in Ally Financial in the 4th quarter worth approximately $31,000. Quarry LP lifted its stake in Ally Financial by 165.7% in the 4th quarter. Quarry LP now owns 959 shares of the financial services provider’s stock worth $33,000 after purchasing an additional 598 shares in the last quarter. Finally, NBC Securities Inc. purchased a new position in Ally Financial in the 3rd quarter worth approximately $26,000. 88.76% of the stock is owned by hedge funds and other institutional investors.

Ally Financial Price Performance

The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.90 and a current ratio of 0.90. The stock’s 50 day simple moving average is $37.71 and its two-hundred day simple moving average is $32.92. The firm has a market capitalization of $11.88 billion, a PE ratio of 13.07, a price-to-earnings-growth ratio of 0.53 and a beta of 1.40.

About Ally Financial

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.