Stock of the Day

October 24, 2022

Ally Financial (ALLY)

$37.75
+$0.02 (+0.0%)
Market Cap: $11.48B

About Ally Financial

Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing. It also provides financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. This segment provides vehicle service and maintenance contract, and guaranteed asset protection products; and underwrites commercial insurance coverages, which primarily insure dealers' vehicle inventory. The Mortgage Finance Operations segment manages consumer mortgage loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies; leveraged loans; and commercial real estate product to serve companies in the nursing facilities, senior housing, and medical office buildings. It also offers commercial banking products and services. In addition, it provides securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.

Today's Trend

Ally Financial Inc. (NYSE: ALLY) shares have decreased and remain close to their 52-week low as investors weigh several reduced price targets against continued bullish analyst ratings and an upcoming earnings report.

  • UBS upgraded Ally to a “strong buy”/“buy” rating, maintaining a bullish view despite reducing its price target from $54 to $50. The new target still implies substantial potential upside from recent trading levels. UBS Group Upgrades Ally Financial
  • TD Cowen kept a “buy” rating and Raymond James retained a “strong buy” rating, signaling that analysts still view Ally’s valuation as attractive even after lowering their targets to $54 and $52, respectively. Raymond James Lowers Price Target
  • Ally’s third-quarter results, scheduled for October 20, are the next major catalyst. Investors will focus on auto-loan credit performance, funding costs, net interest margins and management’s outlook. Ally Financial Stock Heads Toward October 20 Results
  • CEO commentary emphasizing that “strategy is about choices” highlights management’s efforts to prioritize growth and capital allocation, but the article does not provide a specific new financial target or near-term catalyst. Ally CEO: Strategy is About Choices
  • The repeated target reductions from UBS, Raymond James and TD Cowen point to more cautious assumptions about Ally’s earnings, credit conditions or valuation. Separately, recent commentary notes that weak price momentum is offsetting benefits from a steepening yield curve, contributing to investor hesitation. A Steepening Curve Favors the Bank, But Momentum Disagrees
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