During the last three months, 11 analysts shared their evaluations of Ally Financial ALLY, revealing diverse outlooks 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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 4 | 2 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 3 | 4 | 2 | 1 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $43.45, a high estimate of $50.00, and a low estimate of $34.00. Observing a 9.72% increase, the current average has risen from the previous average price target of $39.60.
Interpreting Analyst Ratings: A Closer Look
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 |
|---|---|---|---|---|---|
| Ryan Nash | Goldman Sachs | Raises | Buy | $50.00 | $45.00 |
| David Smith | Truist Securities | Raises | Buy | $47.00 | $42.00 |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $45.00 | $41.00 |
| Richard Shane | JP Morgan | Raises | Overweight | $43.00 | $40.00 |
| Karl Shepard | RBC Capital | Raises | Outperform | $45.00 | $41.00 |
| Ryan Nash | Goldman Sachs | Raises | Buy | $48.00 | $42.00 |
| Donald Fandetti | Wells Fargo | Raises | Underweight | $34.00 | $32.00 |
| 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 |
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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey 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.
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.
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.
Ally Financial's Financial Performance
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Challenges: Ally Financial's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -2.18%. 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -7.46%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.39%, 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 -0.09%, 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 1.66, 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.
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.
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