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Stock Alert: Ally Financial Falls

Shares of online banker Ally Financial Inc. (ALLY) tumbled $3.70 or 11.55% on Wednesday.

Ally announced its acquisition of subprime lender Cardworks for $2.65 billion. Cardworks, is a privately held, non-prime credit card and consumer finance lender with 4.7 billion in assets and $2.9 billion in deposits.

Ally is paying Cardworks $1.35 billion of cash and $1.30 billion in shares as consideration.

Upon completion of the transaction, Ally will provide service to over 11 million customers in all 50 states.

However, the stock did not react positively to the news as it closed Wednesday's session at $28.33, close to its 52-week low of $25.80.

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