Analysis of Ally Financial Inc. (NYSE:ALLY): Selected Notes

The closing price of Ally Financial Inc. (NYSE: ALLY) was $31.43 for the day, up 20.01% from the previous closing price of $26.19. In other words, the price has increased by $+5.24 from its previous closing price. On the day, 33576043 shares were traded. ALLY stock price reached its highest trading level at $31.61 during the session, while it also had its lowest trading level at $28.80.

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Our analysis of ALLY’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 1.02 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 4.08. In the meantime, Its Debt-to-Equity ratio is 2.36 whereas as Long-Term Debt/Eq ratio is at 1.32.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Jefferies on January 10, 2023, Downgraded its rating to Hold and sets its target price to $25 from $40 previously.

On January 09, 2023, Piper Sandler Upgraded its rating to Neutral which previously was Underweight and also upped its target price recommendation from $25 to $28.

BofA Securities Downgraded its Buy to Underperform on January 05, 2023, whereas the target price for the stock was revised from $35 to $26.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Oct 25 when MAGNER MARJORIE bought 2,000 shares for $27.43 per share. The transaction valued at 54,868 led to the insider holds 55,603 shares of the business.

Schugel Jason E. sold 2,500 shares of ALLY for $112,500 on Apr 19. The Chief Risk Officer now owns 82,476 shares after completing the transaction at $45.00 per share. On Mar 01, another insider, Schugel Jason E., who serves as the Chief Risk Officer of the company, sold 2,500 shares for $49.21 each. As a result, the insider received 123,025 and left with 84,976 shares of the company.

Valuation Measures:

As of this moment, Ally’s Price-to-Earnings (P/E) ratio for their current fiscal year is 5.31, and their Forward P/E ratio for the next fiscal year is 6.19. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.80 while its Price-to-Book (P/B) ratio in mrq is 0.96.

Stock Price History:

Over the past 52 weeks, ALLY has reached a high of $51.05, while it has fallen to a 52-week low of $22.34. The 50-Day Moving Average of the stock is 25.87, while the 200-Day Moving Average is calculated to be 32.68.

Shares Statistics:

ALLY traded an average of 5.28M shares per day over the past three months and 9.37M shares per day over the past ten days. A total of 308.22M shares are outstanding, with a floating share count of 296.76M. Insiders hold about 0.10% of the company’s shares, while institutions hold 94.90% stake in the company. Shares short for ALLY as of Oct 13, 2022 were 13.88M with a Short Ratio of 16.28M, compared to 11.49M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 4.62% and a Short% of Float of 5.27%.

Dividends & Splits

With its trailing 12-month dividend rate of 0.76, ALLY has a forward annual dividend rate of 1.20. Against a Trailing Annual Dividend Yield of 2.90%, it implies a Forward Annual Dividend Yield of 4.41%. The stock’s 5-year Average Dividend Yield is 2.32. The current Payout Ratio is 19.40% for ALLY, which recently paid a dividend on Feb 14, 2023 with an ex-dividend date of Oct 30, 2022. Stock splits for the company last occurred on Apr 09, 2014 when the company split stock in a 310:1 ratio.

Earnings Estimates

The firm’s stock currently is rated by 18 analysts. On average, analysts expect EPS of $1 for the current quarter, with a high estimate of $1.14 and a low estimate of $0.81, while EPS last year was $2.02. The consensus estimate for the next quarter is $1.06, with high estimates of $1.36 and low estimates of $0.49.

Analysts are recommending an EPS of between $6.36 and $5.8 for the fiscal current year, implying an average EPS of $6.01. EPS for the following year is $4.51, with 17 analysts recommending between $6.28 and $1.94.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 12 analysts. It ranges from a high estimate of $2.21B to a low estimate of $1.91B. As of the current estimate, Ally Financial Inc.’s year-ago sales were $2.2B, an estimated decrease of -7.10% from the year-ago figure. For the next quarter, 8 analysts are estimating revenue of $2.06B, a decrease of -3.70% over than the figure of -$7.10% in the same quarter last year. There is a high estimate of $2.15B for the next quarter, whereas the lowest estimate is $1.97B.

A total of 12 analysts have provided revenue estimates for ALLY’s current fiscal year. The highest revenue estimate was $8.8B, while the lowest revenue estimate was $8.14B, resulting in an average revenue estimate of $8.31B. In the same quarter a year ago, actual revenue was $8.21B, up 1.30% from the average estimate. Based on 12 analysts’ estimates, the company’s revenue will be $8.42B in the next fiscal year. The high estimate is $8.93B and the low estimate is $8.06B. The average revenue growth estimate for next year is up 1.30% from the average revenue estimate for this year.