Ally Financial Inc. (NYSE: ALLY) stock jumped 1.11% on Wednesday to $26.53 against a previous-day closing price of $26.24. With 2.42 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.94 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $26.67 whereas the lowest price it dropped to was $25.95. The 52-week range on ALLY shows that it touched its highest point at $53.83 and its lowest point at $24.83 during that stretch. It currently has a 1-year price target of $33.34. With its current market cap of 7.99 billion, ALLY has annualized dividend of $1.20 while the current yield stands at 4.52%. Beta for the stock currently stands at 1.26.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ALLY was down-trending over the past week, with a drop of -1.92%, but this was down by -2.18% over a month. Three-month performance dropped to -26.12% while six-month performance fell -34.17%. The stock lost -46.99% in the past year, while it has lost -44.28% so far this year. A look at the trailing 12-month EPS for ALLY yields 5.92 with Next year EPS estimates of 4.63. For the next quarter, that number is 1.00. This implies an EPS growth rate of 191.40% for this year and -23.04% for next year. EPS is expected to decline by -10.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 30.20%.
Float and Shares Shorts:
At present, 308.22 million ALLY shares are outstanding with a float of 296.76 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.88 million, which was 4.62% higher than short shares on Sep 14, 2022. In addition to Mr. Jeffrey J. Brown as the firm’s CEO & Director, Mr. Scott A. Stengel serves as its Gen. Counsel.
Through their ownership of 97.91% of ALLY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.47% of ALLY, in contrast to 42.46% held by mutual funds. Shares owned by individuals account for 1.03%. As the largest shareholder in ALLY with 10.58% of the stake, The Vanguard Group, Inc. holds 31,607,000 shares worth 31,607,000. A second-largest stockholder of ALLY, Berkshire Hathaway, Inc., holds 30,000,000 shares, controlling over 10.05% of the firm’s shares. Harris Associates LP is the third largest shareholder in ALLY, holding 26,796,400 shares or 8.97% stake. With a 4.47% stake in ALLY, the Oakmark Fund is the largest stakeholder. A total of 13,359,100 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.78% of ALLY stock, is the second-largest Mutual Fund holder. It holds 8,297,972 shares valued at 228.69 million. Oakmark Select Fund holds 2.34% of the stake in ALLY, owning 7,000,100 shares worth 192.92 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ALLY since 21 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ALLY analysts setting a high price target of $46.00 and a low target of $23.00, the average target price over the next 12 months is $33.11. Based on these targets, ALLY could surge 73.39% to reach the target high and fall by -13.31% to reach the target low. Reaching the average price target will result in a growth of 24.8% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ALLY will report FY 2022 earnings on 01/20/2023. Analysts have provided yearly estimates in a range of $6.87 being high and $5.13 being low. For ALLY, this leads to a yearly average estimate of $6.04. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ally Financial Inc. surprised analysts by -$0.57 when it reported $1.12 EPS against a consensus estimate of $1.69. The surprise factor in the prior quarter was -$0.11. Based on analyst estimates, the high estimate for the next quarter is $1.14 and the low estimate is $0.81. The average estimate for the next quarter is thus $1.00.
Summary of Insider Activity:
Insiders traded ALLY stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 4,336 shares were bought while 0 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 55 over the past year. The total number of shares bought during that period was 275,577 while 192,663 shares were sold.