Zacks Research Predicts Weaker Earnings for Ally Financial

Ally Financial Inc. (NYSE:ALLY) – Analysts at Zacks Research reduced their FY2025 earnings per share estimates for Ally Financial in a report released on Monday, February 17th. Zacks Research analyst R. Department now anticipates that the financial services provider will post earnings of $3.29 per share for the year, down from their prior estimate of $3.95. The consensus estimate for Ally Financial’s current full-year earnings is $3.64 per share. Zacks Research also issued estimates for Ally Financial’s Q4 2025 earnings at $1.00 EPS and Q1 2026 earnings at $1.10 EPS.

Other analysts have also issued research reports about the stock. Royal Bank of Canada lifted their price target on shares of Ally Financial from $41.00 to $45.00 and gave the company an “outperform” rating in a research report on Thursday, January 23rd. StockNews.com downgraded Ally Financial from a “buy” rating to a “hold” rating in a research report on Thursday, January 23rd. Truist Financial upped their price objective on shares of Ally Financial from $42.00 to $47.00 and gave the stock a “buy” rating in a report on Tuesday, January 28th. Citigroup lifted their target price on Ally Financial from $50.00 to $55.00 and gave the company a “buy” rating in a research report on Friday, November 15th. Finally, Morgan Stanley increased their price objective on Ally Financial from $41.00 to $45.00 and gave the company an “overweight” rating in a research note on Thursday, January 23rd. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat.com, Ally Financial has an average rating of “Hold” and a consensus target price of $43.76.

Ally Financial Price Performance

Shares of ALLY stock opened at $39.16 on Thursday. The company has a debt-to-equity ratio of 1.51, a current ratio of 0.93 and a quick ratio of 0.93. The company has a market capitalization of $11.93 billion, a PE ratio of 15.06, a price-to-earnings-growth ratio of 0.33 and a beta of 1.45. The firm’s 50-day moving average is $37.12 and its two-hundred day moving average is $37.34. Ally Financial has a 12 month low of $31.95 and a 12 month high of $45.46.

Ally Financial (NYSE:ALLY) last posted its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $0.78 EPS for the quarter, topping the consensus estimate of $0.57 by $0.21. Ally Financial had a return on equity of 9.31% and a net margin of 11.29%. The business had revenue of $2.09 billion for the quarter, compared to analyst estimates of $2.02 billion. During the same quarter in the previous year, the firm earned $0.45 EPS. The company’s quarterly revenue was up 3.6% compared to the same quarter last year.

Hedge Funds Weigh In On Ally Financial

A number of institutional investors have recently made changes to their positions in the business. Tidal Investments LLC raised its stake in shares of Ally Financial by 1.1% in the fourth quarter. Tidal Investments LLC now owns 26,279 shares of the financial services provider’s stock valued at $946,000 after purchasing an additional 280 shares in the last quarter. CIBC Asset Management Inc lifted its position in Ally Financial by 1.9% during the 3rd quarter. CIBC Asset Management Inc now owns 15,638 shares of the financial services provider’s stock worth $557,000 after buying an additional 293 shares in the last quarter. EP Wealth Advisors LLC increased its holdings in shares of Ally Financial by 4.9% in the fourth quarter. EP Wealth Advisors LLC now owns 6,367 shares of the financial services provider’s stock valued at $229,000 after purchasing an additional 297 shares in the last quarter. Maverick Capital Ltd. raised its position in shares of Ally Financial by 1.2% during the third quarter. Maverick Capital Ltd. now owns 26,120 shares of the financial services provider’s stock worth $930,000 after acquiring an additional 299 shares during the last quarter. Finally, Meiji Yasuda Asset Management Co Ltd. lifted its position in Ally Financial by 2.1% during the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 15,332 shares of the financial services provider’s stock valued at $552,000 after purchasing an additional 320 shares during the period. 88.76% of the stock is currently owned by institutional investors.

Insider Transactions at Ally Financial

In other Ally Financial news, CEO Michael George Rhodes bought 25,634 shares of Ally Financial stock in a transaction dated Monday, January 27th. The stock was bought at an average price of $39.09 per share, for a total transaction of $1,002,033.06. Following the completion of the acquisition, the chief executive officer now directly owns 25,634 shares of the company’s stock, valued at approximately $1,002,033.06. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Russell E. Hutchinson acquired 19,100 shares of the stock in a transaction that occurred on Friday, January 24th. The shares were bought at an average cost of $39.45 per share, for a total transaction of $753,495.00. Following the completion of the transaction, the chief financial officer now directly owns 202,845 shares of the company’s stock, valued at $8,002,235.25. This represents a 10.39 % increase in their position. The disclosure for this purchase can be found here. Company insiders own 0.67% of the company’s stock.

Ally Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 14th. Investors of record on Friday, January 31st were paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.06%. The ex-dividend date of this dividend was Friday, January 31st. Ally Financial’s dividend payout ratio is currently 46.15%.

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.