Ally Financial Inc. (NYSE:ALLY) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Ally Financial’s high debt levels may restrain its ability to procure additional funds for working capital, acquisitions or other purposes. This may also negatively impact the company’s access to liquidity and increase borrowing costs in the unsecured market. Also, stringent regulations and concentration risks (its performance is highly dependent on the overall health of the Auto industry) will likely continue to weigh on the company’s near-term profitability. However, the company is actively strengthening its balance sheet, which helped it in initiating dividend payment and share buybacks. Also, the company is diversifying its revenue base to boost profitability in the long run.”
Several other research firms also recently commented on ALLY. Jefferies Group reaffirmed a “buy” rating and issued a $28.00 price objective on shares of Ally Financial in a report on Tuesday, September 13th. Deutsche Bank AG reiterated a “buy” rating and issued a $23.00 target price on shares of Ally Financial in a research note on Thursday, August 18th. JPMorgan Chase & Co. reiterated a “buy” rating and issued a $27.00 target price on shares of Ally Financial in a research note on Thursday, June 9th. BTIG Research reiterated a “buy” rating on shares of Ally Financial in a research note on Thursday, June 30th. Finally, Credit Suisse Group AG reiterated an “outperform” rating on shares of Ally Financial in a research note on Tuesday, July 5th. One analyst has rated the stock with a sell rating, three have given a hold rating and fourteen have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $25.13.
Shares of Ally Financial (NYSE:ALLY) opened at 19.38 on Tuesday. The company’s market cap is $9.30 billion. The company has a 50 day moving average of $19.44 and a 200 day moving average of $17.94. Ally Financial has a 52 week low of $14.55 and a 52 week high of $21.21.
Ally Financial (NYSE:ALLY) last released its quarterly earnings data on Tuesday, July 26th. The company reported $0.54 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.51 by $0.03. Ally Financial had a net margin of 17.61% and a return on equity of 17.19%. During the same period in the prior year, the firm posted $0.46 earnings per share. On average, analysts expect that Ally Financial will post $2.25 EPS for the current year.
Large investors have recently made changes to their positions in the company. Mizuho Asset Management Co. Ltd. raised its stake in shares of Ally Financial by 176.4% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 6,999 shares of the company’s stock worth $119,000 after buying an additional 4,467 shares during the period. Quantitative Systematic Strategies LLC purchased a new stake in shares of Ally Financial during the second quarter worth about $168,000. Barnett & Company Inc. purchased a new stake in shares of Ally Financial during the first quarter worth about $178,000. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Ally Financial during the second quarter worth about $179,000. Finally, Seven Eight Capital LLC raised its stake in shares of Ally Financial by 180.5% in the first quarter. Seven Eight Capital LLC now owns 10,412 shares of the company’s stock worth $195,000 after buying an additional 6,700 shares during the period. 99.83% of the stock is currently owned by institutional investors and hedge funds.
About Ally Financial
Ally Financial Inc is a financial holding company and a bank holding company. The Company’s banking subsidiary, Ally Bank, is a franchise in the Internet, telephone, mobile and mail banking market. The Company operates through three segments: Automotive Finance operations, Insurance operations and Mortgage operations.
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