12 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 following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 6 | 3 | 2 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 3 | 2 | 1 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 1 | 1 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $40.83, a high estimate of $49.00, and a low estimate of $32.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 8.41%.
Decoding Analyst Ratings: A Detailed Look
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 |
|---|---|---|---|---|---|
| Richard Shane | JP Morgan | Lowers | Overweight | $40.00 | $46.00 |
| Donald Fandetti | Wells Fargo | Lowers | Underweight | $32.00 | $37.00 |
| Moshe Orenbuch | TD Cowen | Lowers | Hold | $37.00 | $45.00 |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Lowers | Outperform | $44.00 | $50.00 |
| Jason Goldberg | Barclays | Lowers | Equal-Weight | $36.00 | $44.00 |
| Jon Arfstrom | RBC Capital | Lowers | Outperform | $40.00 | $49.00 |
| Betsy Graseck | Morgan Stanley | Lowers | Overweight | $45.00 | $49.00 |
| Brandon Berman | B of A Securities | Lowers | Buy | $37.00 | $46.00 |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $49.00 | $47.00 |
| Donald Fandetti | Wells Fargo | Raises | Underweight | $37.00 | $33.00 |
| Jason Goldberg | Barclays | Raises | Equal-Weight | $44.00 | $43.00 |
| Jon Arfstrom | RBC Capital | Raises | Outperform | $49.00 | $46.00 |
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: 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.
- 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.
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.
All You Need to Know 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's Economic Impact: An Analysis
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 Challenges: Ally Financial's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -4.37%. This indicates a decrease in 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.29%, the company showcases 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 2.33%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Ally Financial's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.14%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Ally Financial's debt-to-equity ratio is below the industry average at 1.53, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: What Are They?
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.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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