Analysts Set Ally Financial Inc. (NYSE:ALLY) Target Price at $49.44

Shares of Ally Financial Inc. (NYSE:ALLY) have been assigned a consensus recommendation of “Moderate Buy” from the seventeen research firms that are currently covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation and fourteen have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $50.50.

A number of analysts recently issued reports on the stock. Evercore ISI upgraded shares of Ally Financial from an “in-line” rating to an “outperform” rating and lifted their price target for the stock from $48.00 to $53.00 in a research note on Tuesday, January 6th. UBS Group set a $48.00 target price on shares of Ally Financial in a research report on Monday, January 12th. JPMorgan Chase & Co. upped their target price on shares of Ally Financial from $43.00 to $48.00 and gave the company an “overweight” rating in a research note on Monday, January 12th. Keefe, Bruyette & Woods decreased their price target on Ally Financial from $56.00 to $51.00 and set an “outperform” rating for the company in a research note on Wednesday, October 1st. Finally, Morgan Stanley set a $53.00 price objective on Ally Financial and gave the company an “overweight” rating in a report on Tuesday, December 16th.

Ally Financial Trading Down 2.0%

NYSE:ALLY opened at $41.15 on Monday. Ally Financial has a one year low of $29.52 and a one year high of $47.27. The business’s 50-day simple moving average is $43.40 and its 200 day simple moving average is $41.13. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.92 and a current ratio of 0.92. The stock has a market cap of $12.67 billion, a price-to-earnings ratio of 17.51, a price-to-earnings-growth ratio of 0.21 and a beta of 1.17.

Ally Financial (NYSE:ALLY) last posted its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.08. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The company had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.15 billion. During the same period in the previous year, the business earned $0.78 EPS. Ally Financial’s revenue for the quarter was up 4.8% compared to the same quarter last year. As a group, sell-side analysts predict that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Monday, February 2nd. Ally Financial’s payout ratio is 51.06%.

Ally Financial announced that its board has initiated a stock buyback plan on Wednesday, December 10th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 15.3% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.

Key Ally Financial News

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

• Positive Sentiment: CEO Michael George Rhodes bought 23,800 shares (~$992k), increasing his stake ~93%, signaling insider confidence in the stock. SEC Filing
• Positive Sentiment: Q4 results: Ally beat EPS expectations, reported y/y revenue growth and said provisions and expenses declined; management authorized a $2 billion share buyback — supportive for EPS and capital return. Ally Financial Pops on Q4 Earnings Beat and $2 Billion Buyback
• Positive Sentiment: Deutsche Bank raised its price target to $57 and kept a “buy” rating, implying ~38% upside from recent levels — a likely support for investor sentiment. Deutsche Bank Raises Price Target on Ally Financial
• Neutral Sentiment: Options-market activity suggests traders are positioning for near-term movement in ALLY, which could amplify volatility around catalysts. Is the Options Market Predicting a Spike in Ally Financial Stock?
• Neutral Sentiment: Full Q4 earnings call/transcript available for details on guidance, credit outlook and capital plans — useful for investors assessing forward drivers. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Coverage flagged softness in auto-lending margins and that margins fell short of prior guidance — a key concern given Ally’s large auto-finance exposure. Ally Shares Drop as Margin Falls Short of Earlier Guidance
• Negative Sentiment: Some outlets report Q4 sales came in below analyst estimates and investors are focusing on auto-finance weakness; shares initially dropped ~3% on that flow. Ally Financial Shares Fall 3% as Investors Focus on Auto Finance Weakness
• Negative Sentiment: Analyst note/downgrade: after the rally and a bigger buyback, one analyst cut to “Hold” citing elevated capital-allocation risk and a pro forma CET1 near ~8.3%, which could constrain future flexibility. Ally Financial Takes A More Aggressive Capital Allocation Approach (Downgrade)

Insider Transactions at Ally Financial

In other Ally Financial news, CEO Michael George Rhodes acquired 23,800 shares of the firm’s stock in a transaction on Friday, January 23rd. The stock was purchased at an average price of $41.68 per share, with a total value of $991,984.00. Following the completion of the acquisition, the chief executive officer directly owned 49,434 shares in the company, valued at $2,060,409.12. This trade represents a 92.85% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Allworth Financial LP grew its position in shares of Ally Financial by 385.2% during the 2nd quarter. Allworth Financial LP now owns 752 shares of the financial services provider’s stock valued at $29,000 after buying an additional 597 shares during the last quarter. Mather Group LLC. acquired a new position in Ally Financial in the third quarter valued at approximately $31,000. Hantz Financial Services Inc. grew its holdings in shares of Ally Financial by 662.0% during the second quarter. Hantz Financial Services Inc. now owns 823 shares of the financial services provider’s stock valued at $32,000 after purchasing an additional 715 shares during the last quarter. Westside Investment Management Inc. grew its holdings in shares of Ally Financial by 116.8% during the second quarter. Westside Investment Management Inc. now owns 837 shares of the financial services provider’s stock valued at $34,000 after purchasing an additional 451 shares during the last quarter. Finally, MAI Capital Management raised its position in shares of Ally Financial by 45.1% during the 2nd quarter. MAI Capital Management now owns 975 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 303 shares during the period. 88.76% of the stock is currently owned by institutional investors.

About Ally Financial

Ally Financial Inc is a leading digital financial services company headquartered in Detroit, Michigan. The company offers a comprehensive suite of banking, lending, and insurance products designed for retail and commercial customers. Through its online-only platform, Ally Bank provides checking and savings accounts, certificates of deposit, money market accounts, and home mortgages, emphasizing competitive rates and user-friendly mobile and web experiences.

In addition to its banking operations, Ally Financial is a major player in automotive financing and leasing.