In the last three months, 12 analysts have published ratings on Ally Financial (NYSE:ALLY), offering a diverse range of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 6 | 3 | 1 | 0 |
| Last 30D | 0 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 3 | 1 | 0 | 0 |
| 3M Ago | 1 | 3 | 2 | 1 | 0 |
Analysts have recently evaluated Ally Financial and provided 12-month price targets. The average target is $40.42, accompanied by a high estimate of $55.00 and a low estimate of $32.00. A 11.5% drop is evident in the current average compared to the previous average price target of $45.67.
Analyzing Analyst Ratings: A Detailed Breakdown
The standing of Ally Financial among financial experts is revealed through an in-depth exploration 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 |
|---|---|---|---|---|---|
| Keith Horowitz | Citigroup | Raises | Buy | $55.00 | $50.00 |
| Jon Arfstrom | RBC Capital | Maintains | Outperform | $40.00 | $40.00 |
| Betsy Graseck | Morgan Stanley | Lowers | Overweight | $41.00 | $45.00 |
| John Pancari | Evercore ISI Group | Lowers | In-Line | $38.00 | $47.00 |
| 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 |
Key Insights:
- 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.
- 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.
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.
Delving into Ally Financial's Background
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.
Unraveling the Financial Story of Ally Financial
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'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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.39% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Ally Financial's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.76%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Ally Financial's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.17%, the company may face hurdles in achieving optimal financial returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.48.
Analyst Ratings: What Are They?
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.
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