Ally Financial (ALLY, Financial) has announced its financial results for the second quarter, revealing adjusted revenue of $2.1 billion, surpassing the forecasted $2.04 billion. CEO Michael Rhodes expressed enthusiasm for the organization's progress, emphasizing its effective strategies and execution. The company’s key sectors have shown significant growth, notably in their Dealer Financial Services, which processed a record 3.9 million consumer applications, resulting in $11 billion in originations.
In the Insurance sector, there was a 23% increase in dealer inventory exposure, rising to $48 billion compared to the previous year. The Corporate Finance division also excelled, achieving a 31% return on equity with no net charge-offs or new loans moving to non-accrual, highlighting the team's careful risk management. Ally Bank, a crucial part of the organization, now serves 3.4 million customers, marking continuous growth over 65 quarters and maintaining $143 billion in deposit balances, with 92% insured by the FDIC.
Looking forward, Ally Financial is optimistic about its momentum and plans to leverage its strong brand and disciplined execution to sustain its growth trajectory and enhance shareholder value, despite the broader economic landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Ally Financial Inc (ALLY, Financial) is $44.19 with a high estimate of $59.00 and a low estimate of $30.00. The average target implies an upside of 9.81% from the current price of $40.24. 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 $33.45, suggesting a downside of 16.87% from the current price of $40.24. 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.
