Ally Financial (NYSE:ALLY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “Ally Financial’s shares have underperformed the industry over the past three months. Yet, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. Its first-quarter 2018 results benefited from an increase in total net revenues and lower provisions, partly offset by higher expenses. The company’s initiatives to diversify revenue base will likely support profitability in the quarters ahead. Also, improving net interest margin (NIM), driven by higher rates is likely to aid top-line growth. However, persistently increasing expenses are expected to hurt bottom-line growth. 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 brokerages have also recently commented on ALLY. Sandler O’Neill set a $29.00 target price on shares of Ally Financial and gave the stock a “hold” rating in a report on Thursday, March 15th. BMO Capital Markets cut shares of Ally Financial from an “outperform” rating to a “market perform” rating and set a $32.00 target price for the company. in a report on Wednesday, January 31st. Morgan Stanley decreased their target price on shares of Ally Financial from $34.00 to $32.00 and set an “overweight” rating for the company in a report on Friday, April 27th. Stephens reiterated an “equal weight” rating on shares of Ally Financial in a report on Thursday, April 12th. Finally, Piper Jaffray reissued a “buy” rating on shares of Ally Financial in a research report on Friday, March 16th. Five research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $32.82.
Ally Financial (NYSE:ALLY) last announced its earnings results on Thursday, April 26th. The financial services provider reported $0.68 EPS for the quarter, topping the consensus estimate of $0.66 by $0.02. Ally Financial had a net margin of 14.20% and a return on equity of 8.71%. The company had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.45 billion. During the same period last year, the company posted $0.48 earnings per share. analysts anticipate that Ally Financial will post 2.96 earnings per share for the current fiscal year.
A number of institutional investors and hedge funds have recently modified their holdings of ALLY. Nisa Investment Advisors LLC raised its position in Ally Financial by 32.1% during the fourth quarter. Nisa Investment Advisors LLC now owns 73,267 shares of the financial services provider’s stock valued at $2,136,000 after acquiring an additional 17,814 shares in the last quarter. National Pension Service raised its position in Ally Financial by 11,742.0% during the fourth quarter. National Pension Service now owns 548,993 shares of the financial services provider’s stock valued at $16,009,000 after acquiring an additional 544,357 shares in the last quarter. Creative Planning bought a new position in Ally Financial during the fourth quarter valued at approximately $247,000. Coastline Trust Co bought a new position in Ally Financial during the fourth quarter valued at approximately $656,000. Finally, Schwab Charles Investment Management Inc. raised its position in Ally Financial by 2.3% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 1,325,887 shares of the financial services provider’s stock valued at $38,663,000 after acquiring an additional 30,101 shares in the last quarter.
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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