Breaking Down Ally Financial: 9 Analysts Share Their Views
9 analysts have expressed a variety of opinions on Ally Financial (NYSE:ALLY) over the past quarter, offering a diverse set of opinions from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 4 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 3 | 2 | 0 | 0 | 0 |
| 2M Ago | 1 | 1 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts have set 12-month price targets for Ally Financial, revealing an average target of $52.22, a high estimate of $56.00, and a low estimate of $48.00. This current average reflects an increase of 9.66% from the previous average price target of $47.62.
Diving into Analyst Ratings: An In-Depth Exploration
The perception of Ally Financial by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Pancari | Evercore ISI Group | Lowers | Outperform | $51.00 | $53.00 |
| David Smith | Truist Securities | Lowers | Buy | $50.00 | $51.00 |
| Richard Shane | JP Morgan | Raises | Overweight | $48.00 | $43.00 |
| Moshe Orenbuch | TD Cowen | Raises | Buy | $55.00 | $50.00 |
| Nicholas Holowko | UBS | Announces | Buy | $56.00 | - |
| John Pancari | Evercore ISI Group | Raises | Outperform | $53.00 | $48.00 |
| Jason Goldberg | Barclays | Raises | Equal-Weight | $54.00 | $44.00 |
| David Smith | Truist Securities | Raises | Buy | $51.00 | $47.00 |
| Donald Fandetti | Wells Fargo | Raises | Overweight | $52.00 | $45.00 |
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: Delving into movements, analysts provide estimates for the future value of Ally Financial's stock. This analysis 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.
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.
Key Indicators: Ally Financial's Financial Health
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: Over the 3M period, Ally Financial showcased positive performance, achieving a revenue growth rate of 1.52% as of 31 December, 2025. This reflects a substantial increase in the company's 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 12.47%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Ally Financial's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.31%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.15%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Ally Financial's debt-to-equity ratio is below the industry average at 1.65, reflecting a lower dependency on debt financing and a more conservative financial approach.
What Are Analyst Ratings?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
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.