Ally Financial Declares Quarterly Dividends and Insights

Ally Financial Announces Quarterly Dividends

Ally Financial Inc. (NYSE: ALY), recognized as a leader in digital financial services, has made an exciting announcement regarding its quarterly dividends for both common and preferred stock shareholders. The board has declared a common stock dividend set at $0.30 per share, which is scheduled for payment on February 14, 2025, to those on record as of January 31, 2025. Ally's current dividend yield stands at an impressive 3.21%, showcasing its commitment to delivering consistent returns over 9 consecutive years.

Details of Dividends

Alongside the common stock dividend, Ally Financial is also set to issue dividends to its preferred stock shareholders. For the 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, the company will distribute a total of approximately $15.9 million, translating to $11.75 per share. Similarly, Series C preferred shareholders will also receive $11.75 per share, amounting to a total of about $11.8 million. Both dividend payments are due on February 15, 2025, for shareholders recorded by January 31, 2025.

Ally's Strong Market Position

As the largest all-digital bank in the nation, Ally Financial operates at the forefront of the auto financing industry. With a customer base of approximately 11 million, it provides a comprehensive suite of online banking services that includes deposits, mortgages, credit card products, as well as investment advisory services and securities brokerage. The enterprise also offers corporate finance solutions, delivering essential capital to equity sponsors and middle-market companies while continuing its extensive auto financing and insurance services.

Stock Value Analysis

Currently trading at a P/E ratio of 14.76, Ally Financial appears to be operating below its book value, shown by a Price/Book ratio of 0.92. Recent analysis suggests that the stock is undervalued, presenting a potential opportunity for investors. Market analysts have provided insights into this notable financial institution valued at $11.39 billion, indicating strong long-term viability.

Analyst Opinions on Ally Financial

In the wake of these dividend announcements, various analysts have initiated reports regarding Ally's stock. Truist Securities has given the stock a Buy rating, establishing a price target of $42.00 based on anticipated rebounds in stock value amidst recent challenges. Additionally, Citi has upgraded its financial projections with a new price target of $55.00, an increase from the previous $50.00, while also maintaining a Buy rating.

Recent Changes and Performance

The company has undergone some notable executive transitions, particularly with Jason E. Schugel stepping down as Chief Risk Officer to become a Senior Operating Adviser. Stephanie N. Richard has stepped into the Chief Risk Officer role, ensuring a smooth transition in leadership. Moreover, Ally Financial recently reported impressive third-quarter earnings, significantly driven by tax credits derived from electric vehicle leases, showcasing an adjusted earnings per share (EPS) of $0.95, surpassing estimates from several financial firms, including Citi and TD Cowen.

Along with the quarterly dividend announcement of $0.30 for Q4 2024, the company’s insurance segment also reached a milestone with $384 million in premiums. However, the firm did observe a dip in retail deposits totaling $600 million during this quarter, an important factor for investors to keep in mind when evaluating Ally's performance.

Frequently Asked Questions

What is the dividend declared by Ally Financial?

Ally Financial has declared a quarterly dividend of $0.30 per share for its common stock.

When will the dividends be paid?

The dividends are scheduled for payment on February 14, 2025, for common stock and February 15, 2025, for preferred stock.

How does Ally Financial's current stock value trend?

The stock is currently viewed as undervalued, trading at a P/E ratio of 14.76 and a Price/Book ratio of 0.92.

What are analysts saying about Ally's stock?

Analysts from Truist Securities and Citi have given Ally a Buy rating and set price targets of $42.00 and $55.00 respectively.

What recent changes occurred in Ally Financial's executive team?

Jason E. Schugel stepped down as Chief Risk Officer, with Stephanie N. Richard stepping into this role.

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