Ally Financial Sees Unusually High Options Volume (NYSE:ALLY)

Ally Financial Inc. (NYSE:ALLY) saw unusually large options trading activity on Monday. Investors purchased 33,357 call options on the stock. This is an increase of approximately 640% compared to the typical daily volume of 4,507 call options.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. Deutsche Bank Aktiengesellschaft upped their price target on Ally Financial from $55.00 to $57.00 and gave the stock a “buy” rating in a research note on Thursday, January 22nd. Morgan Stanley set a $53.00 target price on Ally Financial and gave the company an “overweight” rating in a report on Tuesday, December 16th. Truist Financial cut their price target on shares of Ally Financial from $51.00 to $50.00 and set a “buy” rating on the stock in a research note on Monday, January 26th. JPMorgan Chase & Co. increased their price target on shares of Ally Financial from $43.00 to $48.00 and gave the stock an “overweight” rating in a research report on Monday, January 12th. Finally, Wells Fargo & Company raised shares of Ally Financial from a “hold” rating to an “overweight” rating in a research note on Wednesday, December 17th. Thirteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $50.31.

Ally Financial Stock Up 1.1%

Ally Financial stock traded up $0.44 during midday trading on Monday, reaching $38.51. The company’s stock had a trading volume of 2,779,828 shares, compared to its average volume of 3,842,783. The company has a market cap of $11.90 billion, a P/E ratio of 16.38, a P/E/G ratio of 0.19 and a beta of 1.19. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.30. The business has a 50-day simple moving average of $42.64 and a 200-day simple moving average of $41.72. Ally Financial has a fifty-two week low of $29.52 and a fifty-two week high of $47.27.

Ally Financial (NYSE:ALLY) last issued its earnings results on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.08. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The business had revenue of $2.17 billion for the quarter, compared to analyst estimates of $2.15 billion. During the same quarter last year, the company earned $0.78 EPS. The business’s quarterly revenue was up 4.8% on a year-over-year basis. On average, research analysts expect that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial declared that its Board of Directors has initiated a stock repurchase program on Wednesday, December 10th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 15.3% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

Ally Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend was Monday, February 2nd. Ally Financial’s dividend payout ratio (DPR) is 51.06%.

Insiders Place Their Bets

In other news, CFO Russell E. Hutchinson acquired 11,566 shares of the business’s stock in a transaction that occurred on Tuesday, January 27th. The stock was purchased at an average cost of $43.17 per share, for a total transaction of $499,304.22. Following the completion of the transaction, the chief financial officer owned 225,336 shares in the company, valued at approximately $9,727,755.12. This trade represents a 5.41% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael George Rhodes bought 23,800 shares of the firm’s stock in a transaction on Friday, January 23rd. The stock was purchased at an average price of $41.68 per share, for a total transaction of $991,984.00. Following the completion of the acquisition, the chief executive officer directly owned 49,434 shares in the company, valued at $2,060,409.12. The trade was a 92.85% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.56% of the stock is owned by corporate insiders.

Institutional Trading of Ally Financial

A number of large investors have recently made changes to their positions in ALLY. Norges Bank purchased a new stake in Ally Financial in the fourth quarter valued at approximately $157,610,000. Wellington Management Group LLP increased its holdings in shares of Ally Financial by 19.5% in the 4th quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider’s stock valued at $646,347,000 after acquiring an additional 2,332,610 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Ally Financial by 39.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,400,560 shares of the financial services provider’s stock valued at $210,352,000 after purchasing an additional 1,523,425 shares during the last quarter. Marshall Wace LLP acquired a new stake in Ally Financial during the 2nd quarter worth $51,661,000. Finally, Qube Research & Technologies Ltd boosted its stake in Ally Financial by 8,255.7% during the 3rd quarter. Qube Research & Technologies Ltd now owns 1,230,384 shares of the financial services provider’s stock worth $48,231,000 after purchasing an additional 1,215,659 shares during the period. 88.76% of the stock is owned by institutional investors and hedge funds.

About Ally Financial

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.