Russell Hutchinson, CFO at Ally Financial (ALLY), recently bought 19,100 shares. The buy increased his stake by 10%, and came to a total cost of $753,474.
This marks the only insider buy at the company over the past two years. The company’s controller has been a modest seller of shares in late 2023, but otherwise, there have been no other insider sales over the past two years either.
Overall, Ally Financial insiders own 10.6% of shares.
The credit services provider is up just 4% over the past year. Ally’s core business revolves around auto loans, and car sales have been slow over the past year. Other divisions such as mortgages have also struggled as high rates have kept potential buyers on the sidelines.
While Ally was able to improve its profitably and grew earnings by 20%, overall revenues were flat in 2024.
Action to take: Ally Financial trades at less than 9 times forward earnings. Shares also trade at book value. Both metrics suggest shares are a value play here. Value investors may like shares here. Momentum investors may also like shares, as they’ve been trending higher since selling off in September.
At current prices, Ally pays a 3.1% dividend.
For traders, the March $40 calls, last trading for about $1.20, could see mid-double-digit returns on a continued move higher over the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.