Why the price went up today

  • Ally Financial Inc (NYSE:ALLY) stock price rose more than 2% in intraday trading today. That’s why it happened.

Ally Financial Inc (NYSE:ALLY) stock price rose more than 2% in intraday trading today. Investors are reacting positively to Ally Financial announcing that its board of directors has authorized the company to repurchase up to $2 billion of its common stock, effective through December 31, 2022.

Ally had recently completed a $2 billion share repurchase program in 2021 and expects to begin repurchasing shares in the first quarter of 2022. In addition, the board declared a quarterly cash dividend of 0, $30 per common share of the company – representing a 20% increase over the company’s previous quarterly cash dividend. This dividend will be payable on February 15, 2022 to shareholders of record on February 1, 2022.

Ally’s board of directors also declared quarterly cash dividend payments for the company’s Series B and Series C preferred shares, payable February 15, 2022, to shareholders of record as of January 31, 2022. And a payment quarterly cash dividend was declared on Ally’s 4,700 shares. Fixed Rate Reset Non-Cumulative Perpetual Preferred Shares, Series B, of approximately $15.9 million, or $11.75 per share. In addition, a dividend payment has been declared on Ally’s 4.700% Fixed Rate Reset Non-Cumulative Perpetual Preferred Shares, Series C, of ​​approximately $11.8 million, or $11.75 per share.

KEY QUOTE:

“Ally’s strong balance sheet and capital position allows us to significantly increase our ordinary dividend for the seventh time in as many years and maintain a strong share buyback program. These two actions represent important elements of our capital allocation framework and our broader objective of generating long-term value for all of our stakeholders. »

— Jeffrey J. Brown, President and CEO of Ally

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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