During the last three months, 10 analysts shared their evaluations of Ally Financial ALLY, revealing diverse outlooks 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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 2 | 4 | 3 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 2 | 2 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 1 | 1 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Ally Financial, presenting an average target of $38.8, a high estimate of $47.00, and a low estimate of $29.00. Surpassing the previous average price target of $34.67, the current average has increased by 11.91%.
Understanding Analyst Ratings: A Comprehensive Breakdown
A clear picture of Ally Financial's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| James Fotheringham | BMO Capital | Raises | Market Perform | $37.00 | $36.00 |
| Giuliano Bologna | Compass Point | Raises | Neutral | $37.00 | $28.00 |
| Donald Fandetti | Wells Fargo | Raises | Underweight | $33.00 | $29.00 |
| Brandon Berman | B of A Securities | Raises | Buy | $46.00 | $42.00 |
| Richard Shane | JP Morgan | Raises | Underweight | $39.00 | $37.00 |
| John Pancari | Evercore ISI Group | Raises | In-Line | $43.00 | $41.00 |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $47.00 | $37.00 |
| James Fotheringham | BMO Capital | Raises | Market Perform | $37.00 | $36.00 |
| Jon Arfstrom | RBC Capital | Maintains | Outperform | $40.00 | - |
| Donald Fandetti | Wells Fargo | Raises | Underweight | $29.00 | $26.00 |
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 navigate through adjustments in price targets, providing estimates for Ally Financial's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Capture valuable insights into Ally Financial's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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.
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.
Negative Revenue Trend: Examining Ally Financial's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -5.95% in revenue growth, reflecting 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 2.14%, 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 0.45%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Ally Financial's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.03%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.77, Ally Financial adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Significance of Analyst Ratings Explained
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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