Ally Financial (NYSE:ALLY) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised Ally Financial’s price target from $43 to $44 and maintained an “overweight” rating, implying roughly 14.8% upside from the reported $38.33 share price. Analysts overall hold a “Moderate Buy” consensus with a $48.36 target.
• Ally’s latest quarterly results slightly exceeded expectations, with earnings of $1.34 per share and revenue of $2.35 billion, up 6.1% year over year.
• Credit quality remains the key risk: auto delinquencies and loan-loss provisions increased as originations grew, although retail auto charge-offs remained within management’s guidance.

Ally Financial (NYSE:ALLY - Get Free Report) had its price target raised by JPMorgan Chase & Co. from $43.00 to $44.00 in a research note issued on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price target points to a potential upside of 14.79% from the company's current price.

Several other research firms have also recently commented on ALLY. Bank of America boosted their price objective on shares of Ally Financial from $52.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Morgan Stanley reiterated an "equal weight" rating and set a $43.00 target price (down from $55.00) on shares of Ally Financial in a report on Monday, October 12th. UBS Group lowered their target price on Ally Financial from $54.00 to $50.00 and set a "buy" rating for the company in a report on Monday, October 5th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $58.00 price target on shares of Ally Financial in a research note on Wednesday, July 22nd. Finally, Zacks Research lowered Ally Financial from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 13th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $48.36.

Ally Financial Stock Up 0.9%

ALLY stock traded up $0.36 during mid-day trading on Wednesday, hitting $38.33. 660,229 shares of the company were exchanged, compared to its average volume of 3,539,764. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.92 and a current ratio of 0.92. The firm has a market cap of $11.66 billion, a P/E ratio of 9.07, a P/E/G ratio of 0.28 and a beta of 1.11. The firm's 50 day simple moving average is $40.57 and its 200 day simple moving average is $42.68. Ally Financial has a 1-year low of $35.92 and a 1-year high of $47.29.

Ally Financial (NYSE:ALLY - Get Free Report) last released its quarterly earnings results on Tuesday, October 20th. The financial services provider reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.01. The company had revenue of $2.35 billion during the quarter, compared to analysts' expectations of $2.31 billion. Ally Financial had a net margin of 16.75% and a return on equity of 11.75%. The business's quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.15 earnings per share. On average, sell-side analysts predict that Ally Financial will post 5.00 EPS for the current fiscal year.

Insider Activity at Ally Financial

In other news, insider Stephanie Richard sold 5,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total value of $221,150.00. Following the sale, the insider owned 88,927 shares of the company's stock, valued at $3,933,241.21. The trade was a 5.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.46% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Pension & Wealth Management Advisors Inc. acquired a new position in Ally Financial during the third quarter valued at approximately $27,000. Trust Co. of Vermont bought a new position in Ally Financial in the second quarter valued at approximately $36,000. Elevation Wealth Partners LLC grew its stake in Ally Financial by 92.2% in the third quarter. Elevation Wealth Partners LLC now owns 1,005 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 482 shares in the last quarter. SJS Investment Consulting Inc. increased its position in shares of Ally Financial by 30.8% during the 1st quarter. SJS Investment Consulting Inc. now owns 1,019 shares of the financial services provider's stock worth $40,000 after purchasing an additional 240 shares during the last quarter. Finally, Mather Group LLC. increased its position in shares of Ally Financial by 54.4% during the 3rd quarter. Mather Group LLC. now owns 1,192 shares of the financial services provider's stock worth $45,000 after purchasing an additional 420 shares during the last quarter. Institutional investors own 88.76% of the company's stock.

Ally Financial News Summary

Here are the key news stories impacting Ally Financial this week:

• Positive Sentiment: Q3 results exceeded expectations. Ally reported adjusted earnings of $1.34 per share, above the roughly $1.32-$1.33 consensus, while revenue of $2.35 billion surpassed estimates of $2.31 billion and increased 6.1% year over year. Ally Financial reports third quarter 2026 financial results
• Positive Sentiment: Profitability and growth outlook improved. Core return on tangible common equity rose to 13.1%, management raised its average earning-asset growth outlook to 5%-6%, and projected full-year net interest margin of 3.6%-3.65%. These trends support earnings growth if funding and credit conditions remain stable. Ally expects full-year NIM and earning-asset growth outlook
• Positive Sentiment: Capital returns were increased. Ally raised its quarterly common-stock dividend 16.7% to $0.35 per share, or $1.40 annualized, implying a yield of approximately 3.7%. Management also accelerated share repurchases below tangible book value, potentially supporting per-share value. Ally Financial declares dividend
• Neutral Sentiment: Barclays lowered its price target from $56 to $48 and maintained an “equal weight” rating. The revised target still indicates substantial potential upside from the referenced $38.04 price, but the cut signals more limited analyst conviction. Benzinga analyst update
• Negative Sentiment: Credit costs remain the main concern. Auto delinquencies and provisions for loan losses increased as originations grew, raising concerns about future charge-offs even though retail auto charge-offs of 1.89% remained within management’s guidance. Ally auto delinquencies rise

About Ally Financial

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan, and traded on the New York Stock Exchange under the symbol ALLY. The company primarily serves consumers, automotive dealers and businesses in the United States through online and branchless banking and financing platforms.

Ally's automotive finance business provides retail installment loans and leases to consumers and floorplan financing and other services to automotive dealers. Its consumer banking operations, conducted through Ally Bank, offer deposit products such as savings accounts, money market accounts and certificates of deposit, along with consumer lending products.

The company also provides credit cards and commercial financing, and offers investment and brokerage services through Ally Invest.

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