Ally - ALY

Ally Financial (NYSE:ALLY) Stock

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.

Carvana-Hindenburg

Equities

ALLY

CVNA

How we made a 193% gain fading the famous short sellers. 

Betting Against Hindenburg On Carvana


Ally Financial Inc. (NYSE:ALLY) is a digital financial services company specializing in automobile loans. They were originally the financial arm of General Motors Inc. (NYSE:GM). The finance sector company has since

Ally Financial: The Tugboat of Auto Finance Keeps Gaining Steam

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<figure class="wp-block-image aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="582" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-1024x582.jpg" alt="" class="wp-image-6165" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-1024x582.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-300x171.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-768x436.jpg 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Hindenburg Bows Out</h2>
Last month, Nate Anderson, the founder of the famous short sellers Hindenburg Research,&nbsp;<a href="https://hindenburgresearch.com/gratitude/">announced</a>&nbsp;his decision to close shop. A couple of weeks earlier, his firm had announced what appears to have been its last short position, a bet against&nbsp;Carvana, Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>).&nbsp;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24CVNA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$CVNA</a> is a $44 billion online car dealer founded in 2012. Its main business is an online platform that allows retail customers to buy and sell used cars. (2/x) <a href="https://t.co/oTREKhX85u">pic.twitter.com/oTREKhX85u</a>
&mdash; Hindenburg Research (@HindenburgRes) <a href="https://twitter.com/HindenburgRes/status/1874833532641788012?ref_src=twsrc%5Etfw">January 2, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
In the first two posts of their fifty-one post X thread, Hindenburg described Carvana as &#8220;a father-son grift for the ages&#8221; and a &#8220;$44 billion online car dealer founded in 2012.&#8221;
Today it&#8217;s a $60 billion online car dealer, and we exited a bullish bet on it for a 193% gain. Here&#8217;s how.&nbsp;
<h2 class="wp-block-heading">The Gist Of Hindenburg&#8217;s Bearish Thesis</h2>
The gist of Hindenburg&#8217;s bearish thesis was that some past accounting irregularities at the company might&nbsp;jeopardize the company&#8217;s ability to get financing in the future. The day after Hindenburg&#8217;s short call, on January 3rd, the stock dropped 11.22%, to close at $177.16.&nbsp;
<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="800" height="335" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart.jpg" alt="" class="wp-image-6166" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart.jpg 800w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart-300x126.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart-768x322.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /></figure>
<h2 class="wp-block-heading">Why We Were Bullish On Carvana On January 7th</h2>
Two reasons.
The first was Carvana was a Portfolio Armor top ten name. Since December of 2022, our top ten names have returned 19.55%, on average, over the next six months, versus an average of 12.45% for the SPDR S&amp;P 500 Trust (SPY). 
And the second reason was that the day before, Hindenburg&#8217;s bearish thesis had been effectively invalidated, when Ally Financial, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) renewed its financing deal with the company. 
We mentioned both of those factors in&nbsp;<a href="https://portfolioarmor.substack.com/p/trade-alert-top-names-buying-the">our trade alert</a>&nbsp;on January 7th:&nbsp;
<figure class="wp-block-image aligncenter size-full"><a href="https://portfolioarmor.substack.com/p/trade-alert-top-names-buying-the"><img loading="lazy" decoding="async" width="922" height="813" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert.jpg" alt="" class="wp-image-6167" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert.jpg 922w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert-300x265.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert-768x677.jpg 768w" sizes="(max-width: 922px) 100vw, 922px" /></a></figure>
<h2 class="wp-block-heading">Structuring The Trade</h2>
Since the next catalyst on the calendar was Carvana&#8217;s earnings release on February 19th, we looked at the closest options expiration date after that, which was February 21st. To avoid implied volatility crush, we decided to use a vertical call spread. We looked at both Portfolio Armor&#8217;s expected return for CVNA, as well as the at-the-money straddle before selecting strike prices.&nbsp;
The trade we settled on was a vertical spread expiring on February 21st, buying the $220 strike calls, and selling the $230 strike calls. We entered that trade for a net debit of $3.32 on January 7th.&nbsp;
<h2 class="wp-block-heading">Exiting The Trade&nbsp;</h2>
The maximum possible gain on a vertical spread like this is the difference between the strikes. In this case: $230 &#8211; $220 = $10. That occurs when the stock is trading above your higher strike, close to expiration. That&#8217;s when your short call leg (the one you have to buy back) has the least time value.&nbsp;
We held the trade through Carvana&#8217;s earnings report after the close on Wednesday. The stock dropped about 12% after its earnings miss, but it was still well above our higher strike on Thursday morning. We ended up exiting at a net credit of $9.74, for a 193% gain.&nbsp;
<ul>
<li>Call spread on Carvana (<a href="https://substack.com/discover/stocks/CVNA" target="_blank" rel="noreferrer noopener">CVNA 3.52%↑</a>). Entered at a net debit of $3.32 on 1/7/2025; exited at a net credit of $9.74 on <a href="https://portfolioarmor.substack.com/p/trade-alert-top-names-buying-the/comment/94868655" target="_blank" rel="noreferrer noopener">2/20/2025</a>. Profit: 193%.</li>
</ul>
<h2 class="wp-block-heading">The Takeaway</h2>
Trading doesn&#8217;t have to be complicated. Our bullish thesis on Carvana was a lot shorter than Hindenburg&#8217;s bearish thesis:&nbsp;
<ul>
<li>A reliable indicator (our system&#8217;s top ten names) was bullish on Carvana.</li>
<li>Ally Financial renewing Carvana&#8217;s financing deal invalidated Hindenburg&#8217;s short thesis.&nbsp;</li>
</ul>
If you would like a heads up when we enter our next trade, you can sign up to our trading Substack/occasional email list below.&nbsp;And if you want to add some downside protection here, you can download the Portfolio Armor optimal hedging app by aiming your iPhone camera at the QR code below (or by&nbsp;<a href="https://apps.apple.com/us/app/portfolio-armor/id394951144">tapping here</a>, if you&#8217;re reading this on your phone).&nbsp;
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If you&#8217;d like to stay in touch
You can scan for optimal hedges for individual securities, find our current top ten names, and&nbsp;create hedged portfolios&nbsp;on&nbsp;<a href="https://portfolioarmor.com/">our website</a>.&nbsp;You can also follow Portfolio Armor on X&nbsp;<a href="https://twitter.com/portfolioarmor">here</a>, or become a free subscriber to <a href="https://portfolioarmor.substack.com/">our trading Substack</a> using the link below (we&#8217;re using that for our occasional emails now).
<figure class="wp-block-image aligncenter size-full"><a href="https://portfolioarmor.substack.com/"><img loading="lazy" decoding="async" width="602" height="418" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012948/Widget-1-1.jpg" alt="How we made a 193% gain fading the famous short sellers. " class="wp-image-6169" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012948/Widget-1-1.jpg 602w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012948/Widget-1-1-300x208.jpg 300w" sizes="(max-width: 602px) 100vw, 602px" /></a></figure>

Truist Securities analyst David Smith maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Buy and raises the price target from $42 to $47.

News

Price Target

Analyst Ratings

Truist Securities Maintains Buy on Ally Financial, Raises Price Target to $47

Morgan Stanley analyst Betsy Graseck maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Overweight and raises the price target from $41 to $45.

Morgan Stanley Maintains Overweight on Ally Financial, Raises Price Target to $45

JP Morgan analyst Richard Shane maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Overweight and raises the price target from $40 to $43.

JP Morgan Maintains Overweight on Ally Financial, Raises Price Target to $43

RBC Capital analyst Karl Shepard maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Outperform and raises the price target from $41 to $45.

RBC Capital Maintains Outperform on Ally Financial, Raises Price Target to $45

Goldman Sachs analyst Ryan Nash maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Buy and raises the price target from $42 to $48.

Goldman Sachs Maintains Buy on Ally Financial, Raises Price Target to $48

Wells Fargo analyst Donald Fandetti maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Underweight and raises the price target from $32 to $34.

Wells Fargo Maintains Underweight on Ally Financial, Raises Price Target to $34

In the latest quarter, 8 analysts provided ratings for Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), 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.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">4</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
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%.
<img src="https://www.benzinga.com/files/images/story/2025/1737637279_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
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.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>John Hecht</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$40.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$40.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>David Smith</td>
<td>Truist Securities</td>
<td>Announces</td>
<td>Buy</td>
<td>$42.00</td>
<td>-</td>
</tr>
<tr>
<td>Jason Goldberg</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$44.00</td>
<td>$36.00</td>
</tr>
<tr>
<td>Betsy Graseck</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$42.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$42.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Sanjay Sakhrani</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Outperform</td>
<td>$56.00</td>
<td>$44.00</td>
</tr>
<tr>
<td>Keith Horowitz</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$55.00</td>
<td>$50.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ul>
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.
<a href="https://www.benzinga.com/quote/ALLY/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Ally Financial analyst ratings.</a>
<h2>Delving into Ally Financial's Background</h2>
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.
<h3>Understanding the Numbers: Ally Financial's Finances</h3>
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.
<h2>What Are Analyst Ratings?</h2>
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.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Forecasting The Future: 8 Analyst Projections For Ally Financial

Jefferies analyst John Hecht maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Hold and raises the price target from $35 to $40.

Jefferies Maintains Hold on Ally Financial, Raises Price Target to $40

Tech stocks enjoyed a surge Wednesday, driven by a sharp rise in semiconductor shares after President Donald Trump, OpenAI's Sam Altman, Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) co-founder Larry Ellison, and SoftBank CEO Masayoshi Son unveiled the <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43135764/trumps-500-billion-stargate-ai-plan-puts-3-etfs-in-focus">Stargate Project on Tuesday</a>.
The $500 billion initiative is set to develop AI infrastructure in the U.S. over the next four years.
According to OpenAI, &#8220;this infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.&#8221;
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was up 2.3% by midday trading in New York, eyeing their fourth straight positive session, the longest streak since late September. 
Yet, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&#8217;s CEO Elon Musk questioned the financial viability, saying that founders &#8220;<a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">don't actually have the money</a>.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">They don't actually have the money
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1881923570458304780?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The earnings season continues to be off to a strong start, with companies surpassing fourth-quarter expectations, showcasing the resilience of corporate America. Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) delivered a stronger-than-expected quarterly performance across the board, driving its shares up 12%.
Elsewhere, small caps paused for a breather following Tuesday&#8217;s outperformance vis-à-vis large-cap counterparts. 
Chinese stocks slipped, with the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) down 0.8%, after Trump floated the idea of imposing a 10% tariff on China starting from Feb. 1.
In commodities, gold prices surged to an 11-week-high, marking their tenth gain in the past eleven sessions, as investors flocked to safe-haven assets amid rising geopolitical risks.
On Wednesday, Trump warned Russian President Vladimir Putin of potential new sanctions if a peace deal for Ukraine is not reached. Meanwhile, oil prices remained flat after three consecutive sessions of losses.
In the crypto market, selling pressure is mounting as traders react to the absence of crypto-related commentary from the new administration, which had previously positioned itself as crypto-friendly. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) retreated nearly 2% to $104,000.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,933.62</td>
<td>1.7%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>6,103.81</td>
<td>0.9%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>44,173.70</td>
<td>0.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,307.01</td>
<td>-0.5%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012225&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.8% to $602.64.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.3% higher to $441.25.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.6% to $533.22.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.5% to $228.56.</li>
<li>The&nbsp;Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) rallied, up 2.4%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.6%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Oracle Corp. rallied 7% as reaction to the Stargate project. Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) was the chipmaker&#8217;s top performer on Wednesday, up 14%. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose over 4%. </li>
<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) rose 2.8% in reaction to quarterly results beating Street&#8217;s estimates. </li>
<li>Other stocks reacting to company earnings include Interactive Brokers Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), up 8.8%, Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), up 2.6%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), down 2%, Seagate Technology Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>), up 9%, Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), down 1.3%, Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) down 3.4%, Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), up 2.2%, GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), up 2.2%, Amphenol Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>), up 6%, The Travelers Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) up 3.8%, Halliburton Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>), down 1.3%, Ally Financials Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), up 4.5%. </li>
<li>Major large-cap companies slated to report earnings after the close include Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) and Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>), </li>
</ul>
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/news/global/25/01/43135622/coffee-prices-soar-to-record-highs-could-starbucks-face-margin-squeeze">Coffee Prices Soar To Record Highs: Could Starbucks Face Margin Squeeze?</a></li>
</ul>
Image: Shutterstock

Chipmakers Rally On AI Stargate Bet, Netflix Soars, Bitcoin Falters As Trump Keeps Quiet On Crypto: What's Driving Markets Wednesday?

Ally Financial shares are trading higher after the company reported better-than-expected Q4 financial results and announced it will divest its credit card unit to CardWorks.

Sale enables Ally to be more focused on its core businesses;&nbsp;acquisition enhances CardWorks' position as a leading credit card issuer and servicer

Ally Financial Divests Credit Card Unit To CardWorks In $2.3B Portfolio Deal

Earnings Beats

Ally Financial Q4 2024 Adj. EPS $0.78 Beats $0.58 Estimate, Sales $2.088B Beat $2.020B Estimate

<h3>Companies Reporting Before The Bell</h3>
• HDFC Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDB#NYSE">HDB</a>) is projected to report quarterly earnings at $0.49 per share on revenue of $422.93 billion. 
• Travelers Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) is likely to report quarterly earnings at $6.61 per share on revenue of $10.80 billion. 
• Procter &amp; Gamble (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) is projected to report quarterly earnings at $1.86 per share on revenue of $21.59 billion. 
• Comerica (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>) is projected to report quarterly earnings at $1.26 per share on revenue of $837.57 million. 
• GE Vernova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) is expected to report quarterly earnings at $2.37 per share on revenue of $10.70 billion. 
• Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) is likely to report quarterly earnings at $2.02 per share on revenue of $22.45 billion. 
• Textron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TXT#NYSE">TXT</a>) is likely to report quarterly earnings at $1.28 per share on revenue of $3.27 billion. 
• Teledyne Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDY#NYSE">TDY</a>) is projected to report quarterly earnings at $5.23 per share on revenue of $1.45 billion. 
• TE Connectivity (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEL#NYSE">TEL</a>) is projected to report quarterly earnings at $1.89 per share on revenue of $3.91 billion. 
• OFG Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OFG#NYSE">OFG</a>) is projected to report quarterly earnings at $0.96 per share on revenue of $176.15 million. 
• F N B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNB#NYSE">FNB</a>) is likely to report quarterly earnings at $0.33 per share on revenue of $408.00 million. 
• LG Display Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPL#NYSE">LPL</a>) is projected to report quarterly earnings at $0.01 per share on revenue of $5.87 billion. 
• HBT Finl (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBT#NASDAQ">HBT</a>) is likely to report quarterly earnings at $0.58 per share on revenue of $57.48 million. 
• Halliburton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) is estimated to report quarterly earnings at $0.70 per share on revenue of $5.63 billion. 
• BankUnited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKU#NYSE">BKU</a>) is projected to report quarterly earnings at $0.72 per share on revenue of $261.25 million. 
• United Community Banks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCB#NYSE">UCB</a>) is likely to report earnings for its fourth quarter. 
• Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>) is projected to report quarterly earnings at $1.34 per share on revenue of $11.04 billion. 
• Commerce Bancshares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CBSH#NASDAQ">CBSH</a>) is projected to report quarterly earnings at $0.89 per share on revenue of $417.18 million. 
• Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) is expected to report quarterly earnings at $0.64 per share on revenue of $2.01 billion. 
• Amphenol (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>) is expected to report quarterly earnings at $0.50 per share on revenue of $4.06 billion. 
<h3>Companies Reporting After The Bell</h3>
• Triumph Financial (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TFIN#NASDAQ">TFIN</a>) is likely to report quarterly earnings at $0.25 per share on revenue of $108.44 million. 
• Steel Dynamics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>) is projected to report quarterly earnings at $1.63 per share on revenue of $3.98 billion. 
• Origin Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OBK#NYSE">OBK</a>) is likely to report quarterly earnings at $0.52 per share on revenue of $87.75 million. 
• Old Second Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OSBC#NASDAQ">OSBC</a>) is likely to report quarterly earnings at $0.48 per share on revenue of $59.62 million. 
• Wesbanco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WSBC#NASDAQ">WSBC</a>) is estimated to report quarterly earnings at $0.55 per share on revenue of $156.42 million. 
• First Internet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INBK#NASDAQ">INBK</a>) is expected to report quarterly earnings at $0.91 per share on revenue of $24.88 million. 
• NVE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVEC#NASDAQ">NVEC</a>) is estimated to report earnings for its third quarter. 
• Univest Financial (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UVSP#NASDAQ">UVSP</a>) is expected to report quarterly earnings at $0.57 per share on revenue of $73.45 million. 
• SL Green Realty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>) is likely to report quarterly earnings at $1.53 per share on revenue of $156.30 million. 
• Cohen &amp; Steers (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNS#NYSE">CNS</a>) is projected to report quarterly earnings at $0.81 per share on revenue of $140.72 million. 
• Kinder Morgan (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>) is expected to report quarterly earnings at $0.33 per share on revenue of $4.13 billion. 
• Knight-Swift (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>) is projected to report quarterly earnings at $0.33 per share on revenue of $1.88 billion. 
• Equity Bancshares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQBK#NYSE">EQBK</a>) is estimated to report quarterly earnings at $0.91 per share on revenue of $55.96 million. 
• RLI (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RLI#NYSE">RLI</a>) is expected to report quarterly earnings at $1.04 per share on revenue of $435.02 million. 
• CACI International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CACI#NYSE">CACI</a>) is expected to report quarterly earnings at $5.23 per share on revenue of $2.02 billion. 
• Eagle Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EGBN#NASDAQ">EGBN</a>) is estimated to report quarterly earnings at $0.49 per share on revenue of $74.67 million. 
• Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) is estimated to report quarterly earnings at $0.53 per share on revenue of $480.50 million. 
• National Bank Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NBHC#NYSE">NBHC</a>) is likely to report quarterly earnings at $0.79 per share on revenue of $107.38 million. 
• QCR Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCRH#NASDAQ">QCRH</a>) is projected to report quarterly earnings at $1.73 per share on revenue of $96.56 million. 
• Cathay General (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CATY#NASDAQ">CATY</a>) is projected to report quarterly earnings at $1.09 per share on revenue of $185.11 million. 
• Bankwell Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BWFG#NASDAQ">BWFG</a>) is projected to report quarterly earnings at $0.65 per share on revenue of $22.12 million. 
• Third Coast Bancshares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCBX#NASDAQ">TCBX</a>) is estimated to report quarterly earnings at $0.53 per share on revenue of $41.96 million. 
• Plexus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLXS#NASDAQ">PLXS</a>) is projected to report quarterly earnings at $1.55 per share on revenue of $980.53 million. 
• Live Oak Bancshares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOB#NYSE">LOB</a>) is expected to report quarterly earnings at $0.54 per share on revenue of $131.10 million. 
• Amerant Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMTB#NYSE">AMTB</a>) is expected to report quarterly earnings at $0.36 per share on revenue of $100.68 million. 
• Horizon Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBNC#NASDAQ">HBNC</a>) is likely to report quarterly earnings at $0.37 per share on revenue of $62.78 million. 
• Cadence Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CADE#NYSE">CADE</a>) is expected to report quarterly earnings at $0.68 per share on revenue of $457.77 million. 
• Colony Bankcorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CBAN#NYSE">CBAN</a>) is projected to report quarterly earnings at $0.34 per share on revenue of $28.90 million. 
• Banner (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BANR#NASDAQ">BANR</a>) is estimated to report quarterly earnings at $1.21 per share on revenue of $156.09 million. 
• Alcoa (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) is projected to report quarterly earnings at $0.91 per share on revenue of $3.29 billion. 
• Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) is estimated to report quarterly earnings at $3.26 per share on revenue of $4.39 billion. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

AMTB

BANR

BWFG

CACI

CADE

CATY

CBAN

CBSH

EGBN

EQBK

HBNC

INBK

NBHC

NVEC

OSBC

PLXS

QCRH

TCBX

TFIN

UVSP

WSBC

Earnings Scheduled For January 22, 2025

JP Morgan analyst Richard Shane maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Overweight and lowers the price target from $42 to $40.

JP Morgan Maintains Overweight on Ally Financial, Lowers Price Target to $40

Ally Financial's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) short percent of float has fallen 8.82% since its last report. The company recently reported that it has 7.53 million shares sold short, which is 2.48% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.31 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Ally Financial Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1736448316_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ally Financial has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Ally Financial's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Ally Financial's peer group average for short interest as a percentage of float is 6.81%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Trading Ideas

Looking Into Ally Financial's Recent Short Interest

Regional banks still have room to run and thrive even as it is &#8220;easy to overstate the advantage&#8221; for big banks, says Truist Securities in its latest note, highlighting three key paths for regional banks to succeed.
What Happened: Big banks have clear economies of scale, and they have been re-rated relative to small banks with the top five U.S. banks holding about 47% market share for a decade. According to the Truist Securities note, dated Jan. 6, the big banks are in a better position, but at the same time, individual regionals can position themselves to thrive.
Truist initiated coverage on 14 regional financial companies outlining three key strategies relating to pace, magnitude, and quality for the regional banks to remain competitive.
<ul>
<li>Differentiated Growth: Focus on unique and sustainable growth opportunities via differentiated customer base, a different form of fee Income and a niche business with competitive moat. </li>
</ul>
<ul>
<li>Disciplined Capital Allocation: Efficiently deploy capital to support growth and enhance shareholder value.</li>
</ul>
<ul>
<li>Navigating the Evolving Landscape: Adapt to changing market conditions, including interest rates, yield curve shifts, loan and deposit growth, and commercial real estate market dynamics.&#8221;</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Regional Banks</td>
<td>Rating</td>
<td>Price Target</td>
</tr>
<tr>
<td>Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>)</td>
<td>Buy</td>
<td>$51</td>
</tr>
<tr>
<td>Huntington Bancshares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>)</td>
<td>Buy</td>
<td>$19</td>
</tr>
<tr>
<td>M&amp;T Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>)</td>
<td>Buy</td>
<td>$233</td>
</tr>
<tr>
<td>Wintrust Financial (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WTFC#NASDAQ">WTFC</a>)</td>
<td>Buy</td>
<td>$151</td>
</tr>
<tr>
<td>Citizens Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>)</td>
<td>Hold</td>
<td>$49</td>
</tr>
<tr>
<td>Comerica Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>)</td>
<td>Hold</td>
<td>$65</td>
</tr>
<tr>
<td>First Citizens BancShares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCNCA#NASDAQ">FCNCA</a>)</td>
<td>Hold</td>
<td>$2,303</td>
</tr>
<tr>
<td>KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>)</td>
<td>Hold</td>
<td>$19</td>
</tr>
<tr>
<td>Regions Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>)</td>
<td>Hold</td>
<td>$25</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Cards</td>
<td>Rating</td>
<td>Price Target</td>
</tr>
<tr>
<td>Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>)</td>
<td>Buy</td>
<td>$42</td>
</tr>
<tr>
<td>American Express (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>)</td>
<td>Buy</td>
<td>$350</td>
</tr>
<tr>
<td>Capital One Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>)</td>
<td>Buy</td>
<td>$229</td>
</tr>
<tr>
<td>Discover Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>)</td>
<td>Buy</td>
<td>$233</td>
</tr>
<tr>
<td>Synchrony Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYF#NYSE">SYF</a>)</td>
<td>Hold</td>
<td>$72</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/general/market-summary/25/01/42867184/yield-curve-normalization-cheap-valuation-eps-growth-to-boost-banks-in-2025-truist-initiates-coverage-on-these-14-regional-names">Yield Curve Normalization, Cheap Valuation, EPS Growth To Boost Banks In 2025: Truist Initiates Coverage On These 14 Regional Names</a>
Why It Matters: The three listed key paths for regional banks and card companies to thrive can be differentiated and linked to the stocks as mentioned by Truist in their research note.
Differentiated Growth Stories
<ul>
<li>Differentiated Customer Base: American Express Co has an exclusive high-end customer base, which would require an investment of over $100 billion to replicate, according to Truist. On the other hand, Fifth Third Bancorp has a unique ability to organically build a strong deposit market share.</li>
</ul>
<ul>
<li>Differentiated Form of Fee Income: Capital One Financial Corp has seen an expansion of network revenues following the acquisition of Discover. While, KeyCorp&#8217;s leading regional investment banking franchise will be favored by given the potential for increased deal activity driven by the Federal Reserve&#8217;s interest rate cuts and anticipated political changes.</li>
</ul>
<ul>
<li>Niche Business with Competitive Moat: Wintrust Financial Corp secures a dominant position in the highly profitable insurance premium finance market. Whereas, Huntington Bancshares Inc&#8216;s differentiated approach, including its expansion into new lending areas, will support its continued strong performance in loan, deposit, and fee growth across high-quality markets.</li>
</ul>
Disciplined Capital Deployment
<ul>
<li>Another way in which the regional banks could thrive includes a disciplined capital deployment which typically follows organic growth first, followed by dividends and buybacks, and potentially mergers and acquisitions. However, the key lies not in the order itself, but in the flexibility and agility with which banks can adjust their capital allocation strategy in response to evolving company, industry, and macroeconomic conditions.</li>
</ul>
<ul>
<li>Truist believes some banks are attractively valued for share repurchases. M&amp;T Bank Corp&#8216;s CFO in a recent conference hinted at higher buybacks in 2025.</li>
</ul>
Navigating The Evolving Landscape
<ul>
<li>According to Truist, it&#8217;s not unusual for multiple challenges to arise simultaneously. The current environment has witnessed sluggish loan and deposit growth amidst rapid interest rate hikes. However, it is anticipated that at least some of these headwinds will begin to abate in the coming year, leading to a more favorable environment for the banking sector</li>
</ul>
<ul>
<li>CRE Valuation: Banks with significant commercial real estate exposure in high-growth, high-income markets, such as Fifth Third and Huntington, are well-positioned for future CRE origination opportunities. M&amp;T and Citizens Financial Group Inc. will also benefit from an eventual improvement in market conditions.</li>
</ul>
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Analyst Color

Markets

FCNCA

FITB

HBAN

WTFC

Regional Banks Can Thrive Despite Big Bank Dominance: Truist Securities Highlights Three Key Paths For Thriving Regional Banks

Analysts at <a href="https://www.benzinga.com/topic/truist-securities">Truist Securities</a> initiated coverage on 24 large-cap, regional, and trust banks, as well as credit card companies. They anticipate strong earnings growth over the next two years, projecting an annual increase of 12-15% fueled by factors like improving loan growth, a steeper yield curve, and ample capital for expansion.
What Happened: Forecasting a favorable environment for banks in 2025 and 2026, the analysts at Truist foresee a less stringent regulatory environment, with more clarity and flexibility for banks regarding mergers and acquisitions, and the deployment of excess capital.
The note highlighted that the banking stocks were de-rated during the first two years of Trump 1.0 because the yield curve was flattened and late-cycle macro concerns surfaced, even as the administration enacted bank-friendly tax reform and regulatory tailoring. However, according to the brokerage, a little Fed easing and a steeper curve are necessary for the stocks to be re-rated and two rate cuts are expected in 2025, as hinted by Fed during their December meeting. 
According to Truist, while bank valuations have increased, they remain relatively attractive compared to historical levels. They currently trade at a price-to-book value (P/TBV) below their post-financial crisis average, and at a significant discount to the broader market. The note adds that given the current market valuations, bank stocks appear undervalued relative to the S&amp;P 500.
However, despite Truist beliefs that the sector offers attractive opportunities, careful stock selection is crucial according to them. &#8220;While we're not at &#8216;close your eyes and buy ‘em levels,&#8217; we still see attractive opportunities across the sector and view stock selection as increasingly important,&#8221; the note said.
See Also: <a href="https://www.benzinga.com/markets/equities/25/01/42836744/baby-its-cold-outside-these-5-winter-ready-stocks-have-what-it-takes-to-make-you-feel-warm-and-cozy">Baby, It&#8217;s Cold Outside: These 5 Winter-Ready Stocks Have What It Takes To Make You Feel Warm And Cozy</a>
Why It Matters: Truist&#8217;s coverage on 24 financial stocks is spread across three subgroups namely, large-cap, regional, and trust banks, which is initiated with a positive outlook.
<h3 class="wp-block-heading">Large-Cap Banks</h3>
The research note examines long-term investment potential of large U.S. banks as these institutions possess significant advantages, including, &#8220;embedded offense&#8221; with the presence of strong existing businesses and customer relationships.
It also anticipates cyclical tailwinds and capital leverage for such banks given a favorable economic environment and the ability to effectively utilize capital for growth.
These factors position large U.S. banks to achieve organic growth by the expansion of core businesses, double-digit earnings growth and an attractive returns on equity.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Large Cap Banks</td>
<td>Rating</td>
<td>Price Target</td>
</tr>
<tr>
<td>Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>)</td>
<td>Buy</td>
<td>$52</td>
</tr>
<tr>
<td>Citigroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>)</td>
<td>Buy</td>
<td>$85</td>
</tr>
<tr>
<td>Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>)</td>
<td>Buy</td>
<td>$82</td>
</tr>
<tr>
<td>JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>)</td>
<td>Hold</td>
<td>$260</td>
</tr>
<tr>
<td>PNC Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>)</td>
<td>Hold</td>
<td>$215</td>
</tr>
<tr>
<td>US Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>)</td>
<td>Hold</td>
<td>$54</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Regional Banks And Cards</h3>
Truist also initiated coverage on 14 regional financial companies outlining three key strategies for regional banks to remain competitive.
<ul>
<li>Differentiated Growth: Focus on unique and sustainable growth opportunities.</li>
</ul>
<ul>
<li>Disciplined Capital Allocation: Efficiently deploy capital to support growth and enhance shareholder value.</li>
</ul>
<ul>
<li>Navigating the Evolving Landscape: Adapt to changing market conditions, including interest rates, yield curve shifts, loan and deposit growth, and commercial real estate market dynamics.</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Regional Banks</td>
<td>Rating</td>
<td>Price Target</td>
</tr>
<tr>
<td>Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>)</td>
<td>Buy</td>
<td>$51</td>
</tr>
<tr>
<td>Huntington Bancshares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>)</td>
<td>Buy</td>
<td>$19</td>
</tr>
<tr>
<td>M&amp;T Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>)</td>
<td>Buy</td>
<td>$233</td>
</tr>
<tr>
<td>Wintrust Financial (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WTFC#NASDAQ">WTFC</a>)</td>
<td>Buy</td>
<td>$151</td>
</tr>
<tr>
<td>Citizens Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>)</td>
<td>Hold</td>
<td>$49</td>
</tr>
<tr>
<td>Comerica Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>)</td>
<td>Hold</td>
<td>$65</td>
</tr>
<tr>
<td>First Citizens BancShares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCNCA#NASDAQ">FCNCA</a>)</td>
<td>Hold</td>
<td>$2,303</td>
</tr>
<tr>
<td>KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>)</td>
<td>Hold</td>
<td>$19</td>
</tr>
<tr>
<td>Regions Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>)</td>
<td>Hold</td>
<td>$25</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Cards</td>
<td>Rating</td>
<td>Price Target</td>
</tr>
<tr>
<td>Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>)</td>
<td>Buy</td>
<td>$42</td>
</tr>
<tr>
<td>American Express (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>)</td>
<td>Buy</td>
<td>$350</td>
</tr>
<tr>
<td>Capital One Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>)</td>
<td>Buy</td>
<td>$229</td>
</tr>
<tr>
<td>Discover Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>)</td>
<td>Buy</td>
<td>$233</td>
</tr>
<tr>
<td>Synchrony Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYF#NYSE">SYF</a>)</td>
<td>Hold</td>
<td>$72</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Trust Banks And Capital Markets</h3>
Truist anticipates gradual interest rate decreases, the eventual end of quantitative tightening, and a healthy economy and capital markets providing a competitive landscape to trust banks.
According to the analysts, investors should prioritize stocks with the potential for sustained operating leverage. Which is the ability to increase profitability significantly with relatively small increases in revenue. And stocks with strong capital returns, with high levels of income through dividends and share buybacks.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Trust Banks And Capital Markets</td>
<td>Rating</td>
<td>Price Target</td>
</tr>
<tr>
<td>Bank of New York Mellon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>)</td>
<td>Buy</td>
<td>$91</td>
</tr>
<tr>
<td>Charles Schwab (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>)</td>
<td>Buy</td>
<td>$86</td>
</tr>
<tr>
<td>Northern Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTRS#NASDAQ">NTRS</a>)</td>
<td>Hold</td>
<td>$110</td>
</tr>
<tr>
<td>State Street (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>)</td>
<td>Hold</td>
<td>$106</td>
</tr>
</tbody>
</table>
</figure>
Image via Shutterstock
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Long Ideas

Market Summary

Initiation

General

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SCHW

Yield Curve Normalization, Cheap Valuation, EPS Growth To Boost Banks In 2025: Truist Initiates Coverage On These 14 Regional Names

In the last three months, 8 analysts have published ratings on Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), 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.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">5</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
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. 
<img src="https://www.benzinga.com/files/images/story/2025/1736272826_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
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.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>David Smith</td>
<td>Truist Securities</td>
<td>Announces</td>
<td>Buy</td>
<td>$42.00</td>
<td>-</td>
</tr>
<tr>
<td>Jason Goldberg</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$44.00</td>
<td>$36.00</td>
</tr>
<tr>
<td>Betsy Graseck</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$42.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$42.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Sanjay Sakhrani</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Outperform</td>
<td>$56.00</td>
<td>$44.00</td>
</tr>
<tr>
<td>Keith Horowitz</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$55.00</td>
<td>$50.00</td>
</tr>
<tr>
<td>Jon Arfstrom</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$40.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Betsy Graseck</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$41.00</td>
<td>$45.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ul>
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.
<a href="https://www.benzinga.com/quote/ALLY/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Ally Financial analyst ratings.</a>
<h2>About Ally Financial</h2>
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.
<h3>Financial Insights: Ally Financial</h3>
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.
<h2>How Are Analyst Ratings Determined?</h2>
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.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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