Fintel reports that on September 29, 2023, Piper Sandler maintained coverage of Ally Financial (NYSE:ALLY) with a Neutral recommendation.
Analyst Price Forecast Suggests 24.06% Upside
As of August 31, 2023, the average one-year price target for Ally Financial is 33.04. The forecasts range from a low of 24.24 to a high of $47.25. The average price target represents an increase of 24.06% from its latest reported closing price of 26.63.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Ally Financial is 8,576MM, an increase of 14.36%. The projected annual non-GAAP EPS is 4.50.
Ally Financial Declares $0.30 Dividend
On July 17, 2023 the company declared a regular quarterly dividend of $0.30 per share ($1.20 annualized). Shareholders of record as of August 1, 2023 received the payment on August 15, 2023. Previously, the company paid $0.30 per share.
At the current share price of $26.63 / share, the stock's dividend yield is 4.51%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.93%, the lowest has been 1.38%, and the highest has been 6.27%. The standard deviation of yields is 1.06 (n=236).
The current dividend yield is 1.48 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.30. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.58%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 940 funds or institutions reporting positions in Ally Financial. This is a decrease of 39 owner(s) or 3.98% in the last quarter. Average portfolio weight of all funds dedicated to ALLY is 0.23%, a decrease of 5.35%. Total shares owned by institutions decreased in the last three months by 1.20% to 303,336K shares. 
The put/call ratio of ALLY is 1.30, indicating a bearish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 29,000K shares representing 9.61% ownership of the company. No change in the last quarter.
Harris Associates L P holds 26,031K shares representing 8.63% ownership of the company. In it's prior filing, the firm reported owning 25,964K shares, representing an increase of 0.26%. The firm increased its portfolio allocation in ALLY by 4.61% over the last quarter.
OAKMX - Oakmark Fund Investor Class holds 13,359K shares representing 4.43% ownership of the company. No change in the last quarter.
Sessa Capital IM holds 8,923K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 9,493K shares, representing a decrease of 6.39%. The firm decreased its portfolio allocation in ALLY by 62.82% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,393K shares representing 2.78% ownership of the company. In it's prior filing, the firm reported owning 8,341K shares, representing an increase of 0.62%. The firm decreased its portfolio allocation in ALLY by 1.62% over the last quarter.
Ally Financial Background Information
(This description is provided by the company.)
Ally Financial Inc. is a leading digital financial-services company with $182.2 billionin assets as of December 31, 2020. As a customer-centric company with passionate customer service and innovative financial solutions, it's relentlessly focused on 'Doing it Right' and being a trusted financial-services provider to its consumer, commercial, and corporate customers. It's one of the largest full-service automotive-finance operations in the country and offers a wide range of financial services and insurance products to automotive dealerships and consumers. Its award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage lending, personal lending, and a variety of deposit and other banking products, including savings, money-market, and checking accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). Additionally, it offer securities-brokerage and investment-advisory services through Ally Invest. Its robust corporate finance business offers capital for equity sponsors and middle-market companies.
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