Traders Buy Large Volume of Call Options on Ally Financial (NYSE:ALLY)

Ally Financial Inc. (NYSE:ALLY) was the recipient of some unusual options trading on Monday. Stock traders acquired 10,070 call options on the stock. This is an increase of approximately 205% compared to the average volume of 3,304 call options.

Ally Financial Price Performance

Shares of ALLY opened at $41.80 on Wednesday. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.92 and a current ratio of 0.92. The stock has a 50 day simple moving average of $44.38 and a 200 day simple moving average of $42.64. Ally Financial has a 52-week low of $35.92 and a 52-week high of $47.29. The firm has a market capitalization of $12.72 billion, a PE ratio of 9.86, a P/E/G ratio of 0.26 and a beta of 1.10.

Ally Financial (NYSE:ALLY) last posted its earnings results on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.22 by ($0.01). The business had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.22 billion. Ally Financial had a return on equity of 11.75% and a net margin of 16.75%.Ally Financial’s revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.99 earnings per share. Sell-side analysts predict that Ally Financial will post 5.19 EPS for the current fiscal year.

Ally Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, July 31st. This represents a $1.20 annualized dividend and a dividend yield of 2.9%. Ally Financial’s dividend payout ratio is currently 28.30%.

Insider Transactions at Ally Financial

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $44.23, for a total transaction of $221,150.00. Following the transaction, the insider owned 88,927 shares in the company, valued at approximately $3,933,241.21. This trade represents a 5.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On Ally Financial

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in Ally Financial in the 2nd quarter worth $1,315,659,000. Berkshire Hathaway Inc acquired a new stake in shares of Ally Financial in the 2nd quarter valued at about $1,240,650,000. California State Teachers Retirement System lifted its holdings in shares of Ally Financial by 4,362.7% in the second quarter. California State Teachers Retirement System now owns 14,336,308 shares of the financial services provider’s stock valued at $658,753,000 after purchasing an additional 14,015,057 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Ally Financial by 19.5% in the fourth quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider’s stock valued at $646,347,000 after purchasing an additional 2,332,610 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of Ally Financial by 3.6% during the first quarter. Dimensional Fund Advisors LP now owns 9,018,580 shares of the financial services provider’s stock worth $353,776,000 after buying an additional 309,638 shares during the period. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Raymond James Financial set a $55.00 price target on shares of Ally Financial in a research report on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $58.00 target price on shares of Ally Financial in a research note on Wednesday, July 22nd. Royal Bank Of Canada increased their target price on shares of Ally Financial from $52.00 to $55.00 and gave the stock an “outperform” rating in a report on Friday, July 10th. Bank of America lifted their price target on shares of Ally Financial from $52.00 to $53.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Finally, Weiss Ratings raised shares of Ally Financial from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, June 23rd. Fourteen investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $53.73.

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.