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


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

Ally Financial Inc. (NYSE:ALLY - Get Free Report)'s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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 trading hands.

The financial services provider reported $0.78 EPS for the quarter, beating the consensus estimate of $0.57 by $0.21. Ally Financial had a net margin of 10.84% and a return on equity of 8.39%. The business had revenue of $2.09 billion during the quarter, compared to the consensus estimate of $2,021,808.41 billion. During the same quarter in the prior year, the firm earned $0.45 EPS. The business's revenue was up 3.6% on a year-over-year basis.

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 14th. Investors of record on Friday, January 31st will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.98%. The ex-dividend date is Friday, January 31st. Ally Financial's dividend payout ratio (DPR) is presently 48.00%.

A number of equities analysts have recently commented on ALLY shares. JPMorgan Chase & Co. dropped their target price on Ally Financial from $42.00 to $40.00 and set an "overweight" rating for the company in a report on Tuesday, January 14th. Morgan Stanley increased their target price on shares of Ally Financial from $41.00 to $42.00 and gave the company an "overweight" rating in a research note on Thursday, December 19th. Wolfe Research cut shares of Ally Financial from an "outperform" rating to a "peer perform" rating in a research note on Thursday, December 5th. Barclays increased their price objective on shares of Ally Financial from $36.00 to $44.00 and gave the stock an "equal weight" rating in a research report on Monday, January 6th. Finally, Royal Bank of Canada reaffirmed an "outperform" rating and set a $40.00 target price on shares of Ally Financial in a research note on Monday, October 21st. One research analyst has 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, the stock has an average rating of "Hold" and a consensus target price of $42.53.

Check Out Our Latest Research Report on ALLY

Institutional investors and hedge funds have recently made changes to their positions in the stock. Janney Montgomery Scott LLC boosted its position in Ally Financial by 68.8% in the third quarter. Janney Montgomery Scott LLC now owns 68,986 shares of the financial services provider's stock valued at $2,455,000 after buying an additional 28,114 shares during the last quarter. Oak Thistle LLC acquired a new stake in Ally Financial in the 4th quarter valued at $1,112,000. CWA Asset Management Group LLC purchased a new stake in shares of Ally Financial during the third quarter worth about $1,338,000. Wealth Enhancement Advisory Services LLC increased its stake in Ally Financial by 58.7% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 50,466 shares of the financial services provider's stock worth $1,796,000 after buying an additional 18,671 shares in the last quarter. Finally, Point72 Asset Management L.P. acquired a new stake in shares of Ally Financial in the third quarter valued at about $21,571,000. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.36. The stock's fifty day simple moving average is $36.86 and its 200 day simple moving average is $37.92. The company has a market cap of $12.25 billion, a price-to-earnings ratio of 16.08, a P/E/G ratio of 0.39 and a beta of 1.44.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.

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