Zacks Research Lowers Earnings Estimates for Ally Financial

Ally Financial Inc. (NYSE:ALLY) – Stock analysts at Zacks Research decreased their Q1 2025 earnings estimates for shares of Ally Financial in a research report issued to clients and investors on Monday, February 17th. Zacks Research analyst R. Department now anticipates that the financial services provider will earn $0.51 per share for the quarter, down from their previous estimate of $0.55. 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 Q2 2025 earnings at $0.75 EPS, Q3 2025 earnings at $1.03 EPS, Q3 2026 earnings at $1.51 EPS, Q4 2026 earnings at $1.43 EPS, FY2026 earnings at $5.24 EPS and FY2027 earnings at $6.87 EPS.

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

Several other equities research analysts have also recently weighed in on the company. The Goldman Sachs Group increased their price objective on Ally Financial from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Thursday, January 23rd. Barclays increased their price target on shares of Ally Financial from $36.00 to $44.00 and gave the company an “equal weight” rating in a report on Monday, January 6th. StockNews.com downgraded shares of Ally Financial from a “buy” rating to a “hold” rating in a report on Thursday, January 23rd. Citigroup increased their target price on shares of Ally Financial from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Friday, November 15th. Finally, Truist Financial boosted their price target on Ally Financial from $42.00 to $47.00 and gave the company a “buy” rating in a research note on Tuesday, January 28th. One research analyst has rated the stock with a sell rating, ten have given a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $43.76.

Ally Financial Price Performance

Shares of NYSE:ALLY opened at $39.16 on Wednesday. The company has a market cap of $11.93 billion, a price-to-earnings ratio of 15.06, a PEG ratio of 0.33 and a beta of 1.45. The business has a 50 day moving average price of $37.12 and a 200 day moving average price of $37.34. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.51. Ally Financial has a twelve month low of $31.95 and a twelve month high of $45.46.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Venturi Wealth Management LLC raised its stake in shares of Ally Financial by 153.9% in the third quarter. Venturi Wealth Management LLC now owns 952 shares of the financial services provider’s stock worth $34,000 after acquiring an additional 577 shares during the last quarter. Principal Securities Inc. raised its position in Ally Financial by 89.4% in the 4th quarter. Principal Securities Inc. now owns 1,051 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 496 shares during the last quarter. Kestra Investment Management LLC bought a new position in Ally Financial in the 4th quarter worth approximately $43,000. Allworth Financial LP boosted its position in Ally Financial by 41.9% in the 3rd quarter. Allworth Financial LP now owns 1,426 shares of the financial services provider’s stock valued at $51,000 after buying an additional 421 shares during the last quarter. Finally, UMB Bank n.a. boosted its position in Ally Financial by 218.8% in the 4th quarter. UMB Bank n.a. now owns 1,546 shares of the financial services provider’s stock valued at $56,000 after buying an additional 1,061 shares during the last quarter. Institutional investors and hedge funds own 88.76% of the company’s stock.

Insider Transactions at Ally Financial

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

Ally Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, February 14th. Stockholders of record on Friday, January 31st were paid a $0.30 dividend. The ex-dividend date was Friday, January 31st. This represents a $1.20 annualized dividend and a dividend yield of 3.06%. Ally Financial’s dividend payout ratio is presently 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.