5 Cheap Value Stocks Hedge Funds are Buying in 2022

4. Ally Financial Inc. (NYSE:ALLY)

Number of Hedge Fund Holders: 49

P/E Ratio as of May 27: 5.26

Share Price as of May 27: $43.16

Ally Financial Inc. (NYSE:ALLY) is a Michigan-based digital financial-services company, serving consumer, commercial, and corporate customers primarily in the United States and Canada. Ally Financial Inc. (NYSE:ALLY), with a P/E ratio of 5.26 and priced at $43.16, is a notable cheap value stock that hedge funds are buying in 2022. 

On May 24, Wells Fargo analyst Donald Fandetti reiterated an Overweight rating on Ally Financial Inc. (NYSE:ALLY) but lowered the price target on the stock to $50 from $57. The analyst noted that Ally Financial Inc. (NYSE:ALLY) posted a Q1 adjusted EPS of $2.03, above his $1.91 estimate and consensus of $1.93. Overall, the results were attractive and Ally Financial Inc. (NYSE:ALLY) seems positioned to surpass the high end of its 16%-18%+ ROTCE guidance for 2022, the analyst added.

According to Insider Monkey’s Q1 2022 database, 49 hedge funds were bullish on Ally Financial Inc. (NYSE:ALLY), with collective stakes worth $2.4 billion, compared to 48 funds in the preceding quarter, holding stakes in the company valued at $2.3 billion. Harris Associates is the leading shareholder of the company, with 26.6 million shares worth $1.15 billion.