In the latest quarter, 8 analysts provided ratings for Ally Financial ALLY, showcasing a mix of bullish and bearish perspectives.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 4 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 1 | 1 | 0 | 0 |
| 2M Ago | 0 | 3 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $45.12, a high estimate of $56.00, and a low estimate of $40.00. Surpassing the previous average price target of $41.14, the current average has increased by 9.67%.
Analyzing Analyst Ratings: A Detailed Breakdown
A comprehensive examination of how financial experts perceive Ally Financial is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Hecht | Jefferies | Raises | Hold | $40.00 | $35.00 |
| Richard Shane | JP Morgan | Lowers | Overweight | $40.00 | $42.00 |
| David Smith | Truist Securities | Announces | Buy | $42.00 | - |
| Jason Goldberg | Barclays | Raises | Equal-Weight | $44.00 | $36.00 |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $42.00 | $41.00 |
| Richard Shane | JP Morgan | Raises | Overweight | $42.00 | $40.00 |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Raises | Outperform | $56.00 | $44.00 |
| Keith Horowitz | Citigroup | Raises | Buy | $55.00 | $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: 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 explore the dynamics of price targets, providing estimates for the future value of Ally Financial's stock. This examination reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ally Financial's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Ally Financial analyst ratings.
Delving into Ally Financial's Background
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.
Understanding the Numbers: Ally Financial's Finances
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's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 5.62%. This signifies a substantial 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: Ally Financial's net margin is impressive, surpassing industry averages. With a net margin of 14.39%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.76%, the company may need to address challenges in generating satisfactory 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.
What Are Analyst Ratings?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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