Where Ally Financial Stands With Analysts

In the last three months, 8 analysts have published ratings on Ally Financial ALLY, offering a diverse range of perspectives from bullish to bearish.

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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $45.25, along with a high estimate of $56.00 and a low estimate of $40.00. Observing a 7.0% increase, the current average has risen from the previous average price target of $42.29.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Ally Financial by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Ally Financial compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Ally Financial's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

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.

About 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.

Financial Insights: Ally Financial

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in 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 is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.76%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Ally Financial's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.17%, the company may encounter challenges in delivering 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.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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