12 analysts have shared their evaluations of Ally Financial ALLY during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 6 | 3 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 0 | 0 | 0 |
| 2M Ago | 0 | 2 | 2 | 1 | 0 |
| 3M Ago | 1 | 2 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $40.42, with a high estimate of $55.00 and a low estimate of $32.00. A decline of 11.5% from the prior average price target is evident in the current average.
Understanding Analyst Ratings: A Comprehensive 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 |
|---|---|---|---|---|---|
| Keith Horowitz | Citigroup | Raises | Buy | $55.00 | $50.00 |
| Jon Arfstrom | RBC Capital | Maintains | Outperform | $40.00 | $40.00 |
| Betsy Graseck | Morgan Stanley | Lowers | Overweight | $41.00 | $45.00 |
| John Pancari | Evercore ISI Group | Lowers | In-Line | $38.00 | $47.00 |
| Richard Shane | JP Morgan | Lowers | Overweight | $40.00 | $46.00 |
| Donald Fandetti | Wells Fargo | Lowers | Underweight | $32.00 | $37.00 |
| Moshe Orenbuch | TD Cowen | Lowers | Hold | $37.00 | $45.00 |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Lowers | Outperform | $44.00 | $50.00 |
| Jason Goldberg | Barclays | Lowers | Equal-Weight | $36.00 | $44.00 |
| Jon Arfstrom | RBC Capital | Lowers | Outperform | $40.00 | $49.00 |
| Betsy Graseck | Morgan Stanley | Lowers | Overweight | $45.00 | $49.00 |
| Brandon Berman | B of A Securities | Lowers | Buy | $37.00 | $46.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ally Financial. This information provides a snapshot of how analysts perceive 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 provide insights into price targets, offering estimates for the future value of Ally Financial's stock. This comparison reveals trends in analysts' expectations over time.
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.
Discovering Ally Financial: A Closer Look
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: A Financial Overview
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Ally Financial displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 5.62%. This indicates a notable increase 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.39%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Ally Financial's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.76%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.17%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.48, Ally Financial adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Significance of Analyst Ratings Explained
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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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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