Is Ally Financial Inc. (ALLY) Starting to Get Spooky?

Ally Financial Inc. (ALLY) will probably climb 35.48 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $39price as 12-month high target. This represents a whopping 60.69 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $32, which represents a return potential of 31.85 percent when compared to the closing price of the stock of $24.27 on Thursday, January 10. The lowest price target for the stock is $24 — slightly more than -1.11 percent from ALLY’s current share price.

The stock is currently hovering around the first support level of $24.02. Below this, the next support is placed in the zone of $23.76. Till the time, the ALLY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.9 on daily chart, which may remain a cause for concern. If the price breaks below $23.76 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $24.44 mark may result into a pull-back move towards $24.61 level.

On 10th of January, Ally Financial Inc. (NYSE:ALLY) shares ended higher after a volatile session. The shares accumulated 0.04 points or 0.17 percent at $24.27 with a heavy trade volume of 4.044 million shares. After opening the session at $24.1, the shares went as high as $24.355 and as low as $23.93, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $10.2 billion and now has 420.23 million shares outstanding. Ally Financial Inc. (ALLY) stock has lost -0.49 percent of market value in 21 trading days.

ALLY stock has a trailing 3-year beta of 1.25, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.93 a share in the trailing twelve months. The stock’s value has surged 7.11 percent year to date (YTD) against a decline of -20.11 percent in 12 month’s time. The company’s shares still trade -22.44 percent away from its 1-year high of $31.29 and 17.82 percent up from 52-week low of $20.60. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Ally Financial Inc. (ALLY) are trading at a P/E ratio of 11.8 times earnings reported for the past 12 months. The industry ALLY operates in has an average P/E of 44.45. Its P/E ratio went as low as 8.48X and as high as 17.33 over the 5-year span. Further, it is sporting a 1.17 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.91. 0 percent is the gross profit margin for Ally Financial Inc. and operating margin sits at 50.9 percent. Along with this, the net profit margin is 13.2 percent.

Let’s take a look at some insider activity at Ally Financial Inc. (NYSE:ALLY) and see the pattern. The earliest insider trade took place on 11/29/2018. Debrunner David J parted with a total of 25 thousand shares of company at average share price of $26.35. The total for the sales was set at $658.75 thousand. After this transaction, the VP, CAO, Controller account balance stood at 102.16 thousand shares. The stock lost -8.05 percent since that insider sale. On 05/04/2016, Magner Marjorie, Director, purchased 1 thousand shares at a price per share of $16.72. This added 16.72 thousand shares to the insider’s fortune and the stock saw a 44.92 percent rally in value since the news became public. This transaction left 21.22 thousand shares in the Director account.

On 05/04/2016, CFO Halmy Christopher A performed a purchase transaction worth $101.4 thousand. This purchase at $16.9 each has added 6 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 43.37 percent increase since the transaction was reported. The insider now is left with 161.75 thousand shares remaining in the account. Brown Jeffrey Jonathan, who performs the CEO job, bought 12 thousand shares for $201.72 thousand. The acquisition occurred on 05/04/2016 was priced at $16.81 per share. The share price soared 44.14 percent since the reporting date. Brown Jeffrey Jonathan now left with a stake of 368.24 thousand ALLY stock worth $8.94 million after the insider buying.