Across the recent three months, 11 analysts have shared their insights on Ally Financial ALLY, expressing a variety of opinions spanning from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 4 | 3 | 1 | 0 |
| Last 30D | 1 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 2 | 1 | 1 | 0 |
| 3M Ago | 2 | 1 | 2 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Ally Financial, presenting an average target of $45.36, a high estimate of $50.00, and a low estimate of $37.00. This current average reflects an increase of 2.62% from the previous average price target of $44.20.
Analyzing Analyst Ratings: A Detailed Breakdown
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 |
|---|---|---|---|---|---|
| Betsy Graseck | Morgan Stanley | Lowers | Overweight | $45.00 | $49.00 |
| Brandon Berman | B of A Securities | Lowers | Buy | $37.00 | $46.00 |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $49.00 | $47.00 |
| Donald Fandetti | Wells Fargo | Raises | Underweight | $37.00 | $33.00 |
| Jason Goldberg | Barclays | Raises | Equal-Weight | $44.00 | $43.00 |
| Jon Arfstrom | RBC Capital | Raises | Outperform | $49.00 | $46.00 |
| Richard Shane | JP Morgan | Raises | Neutral | $45.00 | $39.00 |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Raises | Outperform | $48.00 | $45.00 |
| Meng Jiao | Deutsche Bank | Lowers | Buy | $50.00 | $51.00 |
| John Pancari | Evercore ISI Group | Raises | In-Line | $45.00 | $43.00 |
| Keith Horowitz | Citigroup | Announces | Buy | $50.00 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ally Financial. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.
To gain a panoramic view of Ally Financial's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious 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: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Ally Financial's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -4.37%. This indicates a decrease in the company's 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 is impressive, surpassing industry averages. With a net margin of 12.29%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Ally Financial's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.33%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Ally Financial's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.14%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Ally Financial's debt-to-equity ratio is below the industry average. With a ratio of 1.53, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Basics 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.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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