Checking in on Ally Financial Stock After Last Week's Earnings

The dividend will be paid to shareholders of record on May 2

Apr 21, 2022 at 11:10 AM
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Ally Financial Inc (NYSE:ALLY) declared on April 13 a quarterly cash dividend of $0.30 per share of the financial company's common stock, payable on May 16 to stockholders of record as of May 2. ALLY offers a dividend yield of 2.68% with a forward dividend of $1.20.

The company also shared a first-quarter earnings and revenue beat just one day later, though analysts aren't responding kindly, as ALLY also shared a drop in profits. Since this report late last week, five analysts have chimed in with price-target cuts. The most recent came from BofA Global Research, with lowered its price objective to $52 from $62. The 12-month consensus price target of $59.26 is still a hefty 33.7% premium to current levels. 

ALY has been chopping lower for most of the year, shedding 8.5% in this time period. However, the security did recently break back above the 30-day moving average, which pressured it lower for monst of the month. Moreover, Ally stock trades at a low forward price-earnings ratio of 5.54 but a relatively high price-sales ratio of 1.83.

From a fundamental point of view, Ally stock offers very little consistency and stability. Ally Financial holds $5.06 billion in cash and $17.27 billion in total debt on its balance sheet. ALLY is also estimated to generate limited growth for fiscal 2023, with 0.9% expected earnings growth and 4.7% expected revenues growth, making the stock unideal for long-term investors, despite boasting a decent dividend yield.


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