Ally Financial (NYSE:ALLY) Hits New 12-Month High – Should You Buy?

Shares of Ally Financial Inc. (NYSE:ALLY) hit a new 52-week high during trading on Monday . The company traded as high as $46.87 and last traded at $47.04, with a volume of 156713 shares. The stock had previously closed at $45.76.

Analysts Set New Price Targets

ALLY has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Ally Financial in a research report on Monday, December 29th. Cowen upgraded Ally Financial from a “hold” rating to a “buy” rating in a research note on Monday, October 20th. Truist Financial upped their target price on Ally Financial from $47.00 to $51.00 and gave the company a “buy” rating in a research report on Monday, December 22nd. Barclays raised their price target on shares of Ally Financial from $44.00 to $54.00 and gave the stock an “equal weight” rating in a research report on Monday. Finally, Citigroup upped their price target on shares of Ally Financial from $59.00 to $70.00 and gave the company a “buy” rating in a report on Monday, September 15th. Twelve investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $48.07.

Ally Financial Price Performance

The stock has a market capitalization of $14.49 billion, a P/E ratio of 28.34, a PEG ratio of 0.23 and a beta of 1.17. The company has a 50 day moving average of $42.27 and a 200-day moving average of $40.75. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.31.

Ally Financial (NYSE:ALLY) last issued its earnings results on Monday, July 28th. The financial services provider reported $0.99 earnings per share for the quarter. Ally Financial had a net margin of 8.10% and a return on equity of 9.96%. The company had revenue of $2.06 billion for the quarter. Sell-side analysts predict that Ally Financial Inc. will post 3.57 EPS for the current year.

Ally Financial announced that its Board of Directors has authorized a share repurchase program on Wednesday, December 10th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 15.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

Insider Transactions at Ally Financial

In related news, insider Kathleen L. Patterson sold 29,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 22nd. The stock was sold at an average price of $40.86, for a total transaction of $1,184,940.00. Following the completion of the transaction, the insider owned 100,203 shares in the company, valued at $4,094,294.58. The trade was a 22.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.56% of the stock is owned by corporate insiders.

Institutional Trading of Ally Financial

A number of large investors have recently modified their holdings of the company. Baird Financial Group Inc. acquired a new position in shares of Ally Financial during the first quarter worth approximately $717,000. Royal Bank of Canada grew its stake in shares of Ally Financial by 106.5% in the first quarter. Royal Bank of Canada now owns 251,123 shares of the financial services provider’s stock worth $9,158,000 after purchasing an additional 129,497 shares in the last quarter. Alliancebernstein L.P. increased its holdings in shares of Ally Financial by 23.3% during the first quarter. Alliancebernstein L.P. now owns 587,226 shares of the financial services provider’s stock valued at $21,416,000 after purchasing an additional 111,114 shares during the period. Integrated Wealth Concepts LLC raised its stake in shares of Ally Financial by 0.7% during the first quarter. Integrated Wealth Concepts LLC now owns 40,363 shares of the financial services provider’s stock valued at $1,472,000 after purchasing an additional 300 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in Ally Financial by 22.8% in the first quarter. NewEdge Advisors LLC now owns 2,235 shares of the financial services provider’s stock worth $82,000 after purchasing an additional 415 shares during the period. Institutional investors and hedge funds own 88.76% of the company’s stock.

Ally Financial Company Profile

Ally Financial Inc is a leading digital financial services company headquartered in Detroit, Michigan. The company offers a comprehensive suite of banking, lending, and insurance products designed for retail and commercial customers. Through its online-only platform, Ally Bank provides checking and savings accounts, certificates of deposit, money market accounts, and home mortgages, emphasizing competitive rates and user-friendly mobile and web experiences.

In addition to its banking operations, Ally Financial is a major player in automotive financing and leasing.