We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ally Financial Acquires TradeKing: What's Next in the Cards?
Read MoreHide Full Article
Ally Financial Inc. (ALLY - Free Report) closed the deal to acquire TradeKing Group Inc., a digital wealth management firm. The transaction cost the company approximately $275 million.
TradeKing offers an online broker/dealer platform, educational content and social collaboration channels, and a digital portfolio management platform. Hence, the deal will not only help Ally Financial to improve its product offering but is also in sync with the recent trend of digitizing financial operations.
Ally Financial CEO Jeffrey Brown said, “The completion of this transaction marks a key step on Ally's journey to create a premier digital financial services company with a broader set of offerings to meet our customers' needs.”
TradeKing will remain based in Fort Lauderdale, FL and operate as a wholly-owned subsidiary of Ally Financial. TradeKing has nearly $4.5 billion in client assets, including nearly $1.1 billion of cash and cash investments, 260,000 funded accounts and 20,000 daily average revenue trades.
In April, at the time of announcement of the transaction, Ally Financial stated that it expects the deal to have a minimal impact on 2016 and 2017 results and be accretive in 2018. Also, the company anticipated future growth potential “as consumer preferences drive a greater shift toward digital wealth management services.”
Brown further said, “Brokerage and wealth management are a natural fit for Ally's customer base, and the timing is right as more consumers gravitate toward digital wealth management services. We believe this transaction will drive meaningful value over time.”
Notably, in Feb 2016, Ally Financial had revealed its plan to expand into wealth management, mortgages and credit card operations.
Ally Financial is gradually diversifying its revenue streams and the acquisition of TradeKing is a step in that direction. Additionally, the company plans to launch a fully integrated consumer platform by early 2017, under which its online brokerage and wealth management services will be offered. Further, it also intends to introduce limited direct mortgage originations in late 2016.
Therefore, these changes are likely to help Ally Financial in diversifying its operations and boost top-line growth.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). Some better-ranked finance stocks include Navient Corporation (NAVI - Free Report) , Cash America International, Inc. and Enova International, Inc. (ENVA - Free Report) . All these stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Ally Financial Acquires TradeKing: What's Next in the Cards?
Ally Financial Inc. (ALLY - Free Report) closed the deal to acquire TradeKing Group Inc., a digital wealth management firm. The transaction cost the company approximately $275 million.
TradeKing offers an online broker/dealer platform, educational content and social collaboration channels, and a digital portfolio management platform. Hence, the deal will not only help Ally Financial to improve its product offering but is also in sync with the recent trend of digitizing financial operations.
Ally Financial CEO Jeffrey Brown said, “The completion of this transaction marks a key step on Ally's journey to create a premier digital financial services company with a broader set of offerings to meet our customers' needs.”
TradeKing will remain based in Fort Lauderdale, FL and operate as a wholly-owned subsidiary of Ally Financial. TradeKing has nearly $4.5 billion in client assets, including nearly $1.1 billion of cash and cash investments, 260,000 funded accounts and 20,000 daily average revenue trades.
In April, at the time of announcement of the transaction, Ally Financial stated that it expects the deal to have a minimal impact on 2016 and 2017 results and be accretive in 2018. Also, the company anticipated future growth potential “as consumer preferences drive a greater shift toward digital wealth management services.”
Brown further said, “Brokerage and wealth management are a natural fit for Ally's customer base, and the timing is right as more consumers gravitate toward digital wealth management services. We believe this transaction will drive meaningful value over time.”
Notably, in Feb 2016, Ally Financial had revealed its plan to expand into wealth management, mortgages and credit card operations.
Ally Financial is gradually diversifying its revenue streams and the acquisition of TradeKing is a step in that direction. Additionally, the company plans to launch a fully integrated consumer platform by early 2017, under which its online brokerage and wealth management services will be offered. Further, it also intends to introduce limited direct mortgage originations in late 2016.
Therefore, these changes are likely to help Ally Financial in diversifying its operations and boost top-line growth.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). Some better-ranked finance stocks include Navient Corporation (NAVI - Free Report) , Cash America International, Inc. and Enova International, Inc. (ENVA - Free Report) . All these stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>