Navigating 9 Analyst Ratings For Ally Financial

9 analysts have expressed a variety of opinions on Ally Financial ALLY over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $33.67, with a high estimate of $43.00 and a low estimate of $23.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 0.47%.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Ally Financial among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ally Financial. This information offers a snapshot of how analysts perceive 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 predict movements in price targets, offering estimates for Ally Financial's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Ally Financial's market position. Stay informed and make well-judged decisions with the assistance of 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, personal loans, 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 Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Ally Financial's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -1.41%. This indicates a decrease in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ally Financial's net margin is impressive, surpassing industry averages. With a net margin of 12.38%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Ally Financial's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.48%, 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 0.14%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Ally Financial's debt-to-equity ratio is below the industry average at 2.08, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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