What Analysts Are Saying About Ally Financial Stock

Providing a diverse range of perspectives from bullish to bearish, 9 analysts have published ratings on Ally Financial ALLY in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 0 4 2 0
Last 30D 1 0 0 0 0
1M Ago 1 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 1 0 4 2 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $42.11, a high estimate of $51.00, and a low estimate of $33.00. Observing a 15.59% increase, the current average has risen from the previous average price target of $36.43.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Ally Financial. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Keith Horowitz Citigroup Announces Buy $50.00 -
Vincent Caintic BTIG Announces Buy $51.00 -
Moshe Orenbuch TD Cowen Raises Hold $43.00 $42.00
James Fotheringham BMO Capital Raises Market Perform $37.00 $36.00
Giuliano Bologna Compass Point Raises Neutral $37.00 $28.00
Donald Fandetti Wells Fargo Raises Underweight $33.00 $29.00
Brandon Berman B of A Securities Raises Buy $46.00 $42.00
Richard Shane JP Morgan Raises Underweight $39.00 $37.00
John Pancari Evercore ISI Group Raises In-Line $43.00 $41.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ally Financial. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Ally Financial compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Ally Financial's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Ally Financial analyst ratings.

Unveiling the Story Behind Ally Financial

Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.

Ally Financial: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Ally Financial's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -6.23%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Ally Financial's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 5.87%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Ally Financial's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.13%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Ally Financial's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.07%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Ally Financial's debt-to-equity ratio is below the industry average at 1.51, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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