Ally Financial (ALLY, Financial) experienced notable bullish activity in the options market, with 3,106 call contracts changing hands, surpassing expectations by 1.1 times. The implied volatility for ALLY options has risen by over one percentage point, reaching 37.66%. Among the active options, the September 25th 40 calls and the May 2nd weekly 31 puts are drawing significant interest, with their combined volume approaching 3,300 contracts. The current Put/Call Ratio stands at 0.52, indicating a tilt towards bullish sentiment. Investors are also eyeing the company's upcoming earnings report slated for July 16th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Ally Financial Inc (ALLY, Financial) is $42.13 with a high estimate of $56.00 and a low estimate of $30.00. The average target implies an upside of 30.62% from the current price of $32.25. More detailed estimate data can be found on the Ally Financial Inc (ALLY) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Ally Financial Inc's (ALLY, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ally Financial Inc (ALLY, Financial) in one year is $32.65, suggesting a upside of 1.24% from the current price of $32.25. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ally Financial Inc (ALLY) Summary page.
ALLY Key Business Developments
Release Date: April 17, 2025
- Adjusted Earnings Per Share: $0.58
- Core Pretax Income: $247 million
- Adjusted Net Revenue: $2.1 billion
- Net Interest Margin: 3.35%
- Consumer Auto Originations: $10.2 billion
- Originated Yield: 9.8%
- Insurance Written Premiums: $385 million
- Corporate Finance Pretax Income: $76 million
- Deposits: $146 billion
- Net Financing Revenue (excluding OID): Approximately $1.5 billion
- Adjusted Other Revenue: $571 million
- Adjusted Provision Expense: $497 million
- Retail Auto Net Charge-Offs: 212 basis points
- Consolidated Net Charge-Off Rate: 150 basis points
- Common Equity Tier 1 (CET1) Ratio: 9.5%
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ally Financial Inc (ALLY, Financial) reported adjusted earnings per share of $0.58, core pretax income of $247 million, and adjusted net revenue of $2.1 billion, reflecting solid execution across core businesses.
- The company achieved a Net Promoter Score well ahead of industry averages, with positive brand social sentiment nearly 90%, indicating strong customer trust and loyalty.
- Ally Financial Inc (ALLY) successfully closed the sale of its credit card business, strengthening its balance sheet and reducing interest rate risk.
- The Auto Finance business saw consumer originations of $10.2 billion, driven by a record 3.8 million applications, highlighting strong dealer relationships and franchise scale.
- The Corporate Finance segment delivered a strong quarter with pretax income of $76 million and a 25% ROE, demonstrating resilience across economic cycles.
Negative Points
- GAAP noninterest expense was impacted by a write-down of goodwill associated with the transfer of card assets to held for sale, contributing to a GAAP loss per share of $0.82 for the quarter.
- The insurance segment faced elevated weather-related losses totaling $58 million, marking the highest first quarter of weather-related losses in the company's history.
- Retail auto net charge-offs, while improved, remain elevated, with ongoing macroeconomic uncertainty posing potential risks to credit performance.
- The sale of the credit card business is expected to have a 20 basis point negative impact on net interest margin on a run rate basis.
- The company faces uncertainty due to evolving trade policies and tariffs, which could impact used car prices and overall business performance.
