Royal Bank of Canada Reiterates “Outperform” Rating for Ally Financial (NYSE:ALLY)

Ally Financial (NYSE:ALLY)‘s stock had its “outperform” rating reaffirmed by equities researchers at Royal Bank of Canada in a research report issued on Monday, Benzinga reports. They presently have a $40.00 price objective on the financial services provider’s stock. Royal Bank of Canada’s target price indicates a potential upside of 15.71% from the stock’s previous close.

A number of other research firms have also recently issued reports on ALLY. BTIG Research cut Ally Financial from a “buy” rating to a “neutral” rating in a report on Monday, September 16th. Citigroup started coverage on Ally Financial in a research report on Monday, June 24th. They set a “buy” rating and a $50.00 target price on the stock. Deutsche Bank Aktiengesellschaft lowered their target price on Ally Financial from $51.00 to $50.00 and set a “buy” rating on the stock in a research report on Monday, July 1st. Evercore ISI lowered their target price on Ally Financial from $47.00 to $38.00 and set an “in-line” rating on the stock in a research report on Monday, October 7th. Finally, StockNews.com raised Ally Financial from a “sell” rating to a “hold” rating in a research report on Saturday. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $40.38.

Ally Financial Price Performance

ALLY stock traded down $0.44 during midday trading on Monday, reaching $34.57. The company had a trading volume of 210,812 shares, compared to its average volume of 3,512,440. The company has a market capitalization of $10.51 billion, a price-to-earnings ratio of 14.11, a price-to-earnings-growth ratio of 0.42 and a beta of 1.39. The stock has a 50 day moving average price of $37.62 and a 200-day moving average price of $39.13. Ally Financial has a 1-year low of $22.54 and a 1-year high of $45.46. The company has a debt-to-equity ratio of 1.39, a current ratio of 0.92 and a quick ratio of 0.91.

Ally Financial (NYSE:ALLY) last announced its earnings results on Friday, October 18th. The financial services provider reported $0.95 EPS for the quarter, beating the consensus estimate of $0.57 by $0.38. Ally Financial had a return on equity of 8.37% and a net margin of 10.26%. The business had revenue of $2.10 billion for the quarter, compared to analysts’ expectations of $2.03 billion. During the same period in the prior year, the business posted $0.83 earnings per share. The firm’s revenue was up 6.9% on a year-over-year basis. Equities research analysts expect that Ally Financial will post 2.87 earnings per share for the current year.

Institutional Investors Weigh In On Ally Financial

Several hedge funds have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD raised its stake in shares of Ally Financial by 245.9% in the first quarter. Price T Rowe Associates Inc. MD now owns 608,179 shares of the financial services provider’s stock worth $24,687,000 after purchasing an additional 432,350 shares during the last quarter. OLD National Bancorp IN increased its position in Ally Financial by 3.8% in the second quarter. OLD National Bancorp IN now owns 880,601 shares of the financial services provider’s stock worth $34,933,000 after buying an additional 32,478 shares in the last quarter. CANADA LIFE ASSURANCE Co boosted its stake in shares of Ally Financial by 15.5% in the first quarter. CANADA LIFE ASSURANCE Co now owns 369,491 shares of the financial services provider’s stock worth $14,988,000 after acquiring an additional 49,539 shares during the period. Fulton Bank N.A. bought a new position in Ally Financial during the second quarter valued at approximately $689,000. Finally, Duality Advisers LP purchased a new position in Ally Financial during the 1st quarter worth $1,000,000. 88.76% of the stock is owned by institutional investors.

About Ally Financial

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.