What’s Next for Ally Financial Inc After Today’s Bearish Options Activity?

 What's Next for Ally Financial Inc After Today's Bearish Options Activity?

In today’s session Ally Financial Inc (ALLY) recorded an unusually high (100) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2016 put, expecting serious ALLY decrease. With 100 contracts traded and 41864 open interest for the Dec, 16 contract, it seems this is a quite bearish bet. The option with symbol: ALLY161216P00019000 closed last at: $0.2 or 20% down. About 1.17M shares traded hands. Ally Financial Inc (NYSE:ALLY) has risen 5.52% since April 26, 2016 and is uptrending. It has outperformed by 0.26% the S&P500.

Analysts await Ally Financial Inc (NYSE:ALLY) to report earnings on February, 7. They expect $0.56 earnings per share, up 7.69% or $0.04 from last year’s $0.52 per share. ALLY’s profit will be $260.08M for 8.66 P/E if the $0.56 EPS becomes a reality. After $0.56 actual earnings per share reported by Ally Financial Inc for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

Ally Financial Inc (NYSE:ALLY) Ratings Coverage

Out of 12 analysts covering Ally Financial (NYSE:ALLY), 8 rate it a “Buy”, 0 “Sell”, while 4 “Hold”. This means 67% are positive. Ally Financial has been the topic of 16 analyst reports since July 29, 2015 according to StockzIntelligence Inc. The company was downgraded on Wednesday, April 27 by Wells Fargo. The company was downgraded on Friday, April 8 by Bank of America. The rating was upgraded by BMO Capital Markets on Wednesday, September 16 to “Outperform”. The rating was maintained by Barclays Capital with “Overweight” on Monday, November 2. The firm has “Buy” rating given on Wednesday, May 4 by Deutsche Bank. The stock has “Buy” rating given by Zacks on Wednesday, September 2. The firm earned “Outperform” rating on Wednesday, July 29 by Credit Suisse. Macquarie Research initiated the stock with “Neutral” rating in Wednesday, May 11 report. Compass Point maintained the stock with “Buy” rating in Wednesday, February 3 report.

According to Zacks Investment Research, “Ally Financial Inc. is an automotive financial services company. Its automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. The company, through its subsidiary, Ally Bank, offers savings and money market accounts, certificates of deposit, interest-bearing checking accounts, and individual retirement accounts; and online and mobile banking, electronic bill pay, remote deposits, electronic funds transfer, and ATM fee reimbursement services. Ally Financial Inc. is based in Detroit, Michigan.”

Ally Financial Inc. is a financial holding firm and a bank holding company. The company has a market cap of $9.02 billion. The Company’s banking subsidiary, Ally Bank, is a franchise in the Internet, telephone, mobile and mail banking market. It currently has negative earnings. The Firm operates through three divisions: Automotive Finance operations, Insurance activities and Mortgage operations.

ALLY Company Profile

Ally Financial Inc., incorporated on February 21, 1997, is a financial holding firm and a bank holding company. The Company’s banking subsidiary, Ally Bank, is a franchise in the Internet, telephone, mobile and mail banking market. The Firm operates through three divisions: Automotive Finance operations, Insurance activities and Mortgage operations. The Company’s Automotive Finance activities segment provides automotive financing services to clients and automotive dealers. The Company’s Insurance activities segment offers both consumer financial and insurance products sold through the automotive dealer channel, and commercial insurance products sold to dealers. The Company’s Mortgage activities segment includes the management of its held-for-investment mortgage loan portfolio. The Company’s Corporate and Other segment consists of Corporate Finance, centralized corporate treasury activities, such as management of the cash and corporate investment securities portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, the amortization of the discount associated with debt issuances and bond exchanges, and the residual impacts of its corporate funds-transfer pricing (FTP) and treasury asset liability management (ALM) activities.

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