Ally Financial (ALLY) Stock Price, News & Analysis

-0.26 (-0.64%)
(As of 05/17/2024 ET)
Today's Range
50-Day Range
52-Week Range
1.39 million shs
Average Volume
3.04 million shs
Market Capitalization
$12.20 billion
P/E Ratio
Dividend Yield
Price Target

Ally Financial MarketRank™ Stock Analysis

Analyst Rating
2.17 Rating Score
4.1% Downside
$38.47 Price Target
Short Interest
2.37% of Float Sold Short
Dividend Strength
Based on Four Factors
Upright™ Environmental Score
News Sentiment
0.26mentions of Ally Financial in the last 14 days
Based on 20 Articles This Week
Insider Trading
Proj. Earnings Growth
From $3.00 to $5.25 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

4.91 out of 5 stars

Finance Sector

24th out of 853 stocks

State Commercial Banks Industry

8th out of 175 stocks

ALLY stock logo

About Ally Financial Stock (NYSE:ALLY)

Ally Financial Inc. is a digital financial services company headquartered in Detroit, Michigan. It was founded in 1919 as the financial arm of General Motors, known as GMAC. Over time, Ally Financial became a diversified financial services provider offering banking, auto finance, and home loans. The company has a presence in the United States and Canada and is considered one of the leading players in the auto finance industry.

Ally Financial's management team is led by Chief Executive Officer Jeffrey J. Brown, who has been with the company since 2009. Brown has over 30 years of experience in the financial services industry and has been instrumental in the company's growth and transformation. Under Brown's leadership, Ally Financial underwent a significant shift, including a successful initial public offering in 2014 and the acquisition of CardWorks in 2020. 

Ally Financial has experienced solid financial performance, consistent revenue, and profit margin growth in recent years. The company reports growing revenue and net profit for the past several years. The company's return on equity (ROE) has consistently exceeded the industry average, reaching around 16%. Furthermore, Ally Financial's earnings per share (EPS) is higher than the industry average.

The company's debt-to-equity ratio is higher than the industry average but still within a manageable range. Ally Financial has maintained its debt levels and has a solid financial position. The company's cash and cash equivalents have recently increased, indicating strong liquidity and financial flexibility.

Regarding valuation, Ally Financial is considered favorable compared to industry peers. The company's price-to-earnings ratio is lower than the industry average, indicating that the stock is undervalued. The company's price-to-book ratio is also lower than the industry average. 

Despite the favorable valuation metrics, the company's stock performance has been mixed in recent years, with significant price movements and changes in trading volume. In 2022, the stock price decreased significantly due to investors' fears surrounding the COVID-19 pandemic. It is important to note that this drop was industry-wide, with most of Ally Financial's peers experiencing the same or similar drops in share price. Investors should know the stock's volatility and potential risks associated with investing in the financial services industry.

Ally Financial operates in a highly competitive industry, with competitors such as Capital One, JPMorgan Chase, and Wells Fargo. The auto finance industry, in particular, is highly cyclical and sensitive to changes in economic conditions. Despite the challenges, Ally Financial has a strong market position and has been able to capitalize on the trend toward digital banking and lending. The company's online banking platform has been a key growth driver, with over four million customers and $200 billion in deposits.

One of the significant growth opportunities for Ally Financial is centered around expanding its presence in the auto finance and digital banking markets. The company is well-positioned to benefit from the trend toward electric vehicles. The company recently partnered with General Motors to finance GM's Ultium Cells LLC joint venture. Additionally, the company's acquisition of CardWorks in 2020 has expanded Ally Financial's presence in the credit card and merchant services markets, providing new growth opportunities. The company's strategic focus on digital banking and lending has provided customers with convenient and innovative financial products and services.

Ally Financial faces several risks and challenges that could impact its growth and profitability. One of the most significant risks is the potential for regulatory changes in the financial services industry. The regulatory environment for financial services companies is complex and can impact the company's ability to operate effectively. The company's exposure to compliance and regulatory requirements risks could have a material impact on its financial results.

Another significant risk for Ally Financial is the potential for changes in consumer preferences. Customers are increasingly turning to digital banking and lending solutions, and the company must continue to innovate and adapt to changing customer preferences to maintain its competitive position. Additionally, the company faces increased competition from traditional banks and fintech companies, which could impact its market share and profitability.

Finally, economic conditions can significantly impact Ally Financial's financial performance. The company operates in a cyclical industry sensitive to changes in interest rates and credit quality. An economic downturn could affect the company's revenue and profitability.

ALLY Stock Price History

ALLY Stock News Headlines

3 Digital Bank Stocks to Buy Now
Best Joint Bank Accounts of May 2024
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Company Calendar

Last Earnings
Ex-Dividend for 5/15 Dividend
Dividend Payable
Next Earnings (Estimated)
Fiscal Year End

Industry, Sector and Symbol

State commercial banks
Year Founded

Price Target and Rating

Average Stock Price Target
High Stock Price Target
Low Stock Price Target
Potential Upside/Downside
Consensus Rating
Rating Score (0-4)
Research Coverage
18 Analysts


Net Income
$1.02 billion
Pretax Margin


Sales & Book Value

Annual Sales
$8.21 billion
Cash Flow
$7.53 per share
Book Value
$37.28 per share


Free Float
Market Cap
$12.20 billion

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ALLY Stock Analysis - Frequently Asked Questions

Should I buy or sell Ally Financial stock right now?

18 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Ally Financial in the last twelve months. There are currently 4 sell ratings, 7 hold ratings and 7 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "hold" ALLY shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in ALLY, but not buy additional shares or sell existing shares.
View ALLY analyst ratings
or view top-rated stocks.

What is Ally Financial's stock price target for 2024?

18 Wall Street analysts have issued 1-year price targets for Ally Financial's stock. Their ALLY share price targets range from $25.00 to $47.00. On average, they anticipate the company's stock price to reach $38.47 in the next twelve months. This suggests that the stock has a possible downside of 4.1%.
View analysts price targets for ALLY
or view top-rated stocks among Wall Street analysts.

How have ALLY shares performed in 2024?

Ally Financial's stock was trading at $34.92 at the start of the year. Since then, ALLY shares have increased by 14.9% and is now trading at $40.12.
View the best growth stocks for 2024 here

Are investors shorting Ally Financial?

Ally Financial saw a decline in short interest in the month of April. As of April 30th, there was short interest totaling 7,140,000 shares, a decline of 10.6% from the April 15th total of 7,990,000 shares. Based on an average daily volume of 3,580,000 shares, the days-to-cover ratio is presently 2.0 days. Approximately 2.4% of the company's stock are short sold.
View Ally Financial's Short Interest

When is Ally Financial's next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Wednesday, July 17th 2024.
View our ALLY earnings forecast

How were Ally Financial's earnings last quarter?

Ally Financial Inc. (NYSE:ALLY) released its earnings results on Thursday, April, 18th. The financial services provider reported $0.45 EPS for the quarter, beating the consensus estimate of $0.33 by $0.12. The financial services provider had revenue of $1.99 billion for the quarter, compared to the consensus estimate of $1.96 billion. Ally Financial had a net margin of 10.59% and a trailing twelve-month return on equity of 8.35%. The company's quarterly revenue was down 5.4% compared to the same quarter last year. During the same period last year, the company earned $0.82 earnings per share.

How often does Ally Financial pay dividends? What is the dividend yield for Ally Financial?

Ally Financial announced a quarterly dividend on Tuesday, April 16th. Stockholders of record on Wednesday, May 1st will be paid a dividend of $0.30 per share on Wednesday, May 15th. This represents a $1.20 dividend on an annualized basis and a yield of 2.99%. The ex-dividend date of this dividend is Tuesday, April 30th.
Read our dividend analysis for ALLY

Is Ally Financial a good dividend stock?

Ally Financial (NYSE:ALLY) pays an annual dividend of $1.20 per share and currently has a dividend yield of 2.97%. The dividend payout ratio is 48.98%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, ALLY will have a dividend payout ratio of 22.86% next year. This indicates that the company will be able to sustain or increase its dividend.
Read our dividend analysis for ALLY.

What is Jeffrey Brown's approval rating as Ally Financial's CEO?

306 employees have rated Ally Financial Chief Executive Officer Jeffrey Brown on Glassdoor.com. Jeffrey Brown has an approval rating of 89% among the company's employees.

What other stocks do shareholders of Ally Financial own?

Based on aggregate information from My MarketBeat watchlists, some companies that other Ally Financial investors own include AT&T (T), Bank of America (BAC), Alibaba Group (BABA), Delta Air Lines (DAL), CVS Health (CVS), Ford Motor (F), JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), Walt Disney (DIS) and Exxon Mobil (XOM).

Who are Ally Financial's major shareholders?

Ally Financial's stock is owned by a number of institutional and retail investors. Top institutional investors include Vanguard Group Inc. (9.25%), Bank of New York Mellon Corp (1.21%), Donald Smith & CO. Inc. (0.91%), LSV Asset Management (0.88%), Magnolia Group LLC (0.60%) and ANTIPODES PARTNERS Ltd (0.50%). Insiders that own company stock include Diane E Morais, Douglas R Timmerman, Jason E Schugel, Jason E Schugel, Jeffrey Jonathan Brown, Jennifer A Laclair, Marjorie Magner and Scott A Stengel.
View institutional ownership trends

How do I buy shares of Ally Financial?

Shares of ALLY stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

This page (NYSE:ALLY) was last updated on 5/19/2024 by MarketBeat.com Staff

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