Ally Financial and CardWorks agreed to cancel Ally's proposed acquisition
The shares of Ally Financial Inc (NYSE:ALLY) are up 13% at $20.69 at last check, after the banking company called off its proposed acquisition of CardWorks, a consumer finance lender and service, last night. The cancellation was mutual,
as both parties agreed amid the adverse affects of coronavirus. Following the news, Piper Sandler handed out a price-target hike to $27, while Credit Suisse and Susquehanna each hiked to $29.
On the charts, ALLY is now healthily above its 40-day moving average, a trendline the equity overcame in mid-May, and now leads as support alongside the $18 level. Year-to-date, the equity is down 33%, but has eked out a gain of 20% in the last month.
Analysts are bullish on Ally stock, with eight out of 12 sporting a "buy" or better, while the remaining four sit at a lukewarm "hold." Meanwhile, the 12-month consensus price target of $27.47 is a 35.7% premium to current levels.
Though calls still outweigh puts on an absolute basis, the options pits are looking much more hesitant than usual. This is per ALLY's 10-day put/call ratio of 0.73 at the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX
(PHLX), which stands higher than 85% of all other readings from the past year.