Ally Financial (NYSE:ALLY) Issues Earnings Results, Misses Expectations By $0.01 EPS

Ally Financial (NYSE:ALLY) posted its quarterly earnings results on Tuesday. The financial services provider reported $1.21 earnings per share for the quarter, missing analysts’ consensus estimates of $1.22 by ($0.01), FiscalAI reports. Ally Financial had a net margin of 16.47% and a return on equity of 11.41%. The business had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.22 billion. During the same quarter last year, the company posted $0.99 EPS. The firm’s revenue was up 9.8% on a year-over-year basis.

Here are the key takeaways from Ally Financial’s conference call:

• Second-quarter results were strong, with adjusted EPS up 22% year over year to $1.21, adjusted revenue up 10%, and core ROTCE reaching 11.8%. Management said the quarter showed its strategy is driving higher earnings power and better operating performance.
• Auto finance growth remained robust, as retail auto applications hit a record 4.6 million and originations rose 21% to $13.3 billion. The company said dealer relationships and a larger top of funnel are supporting continued growth, though it expects growth rates to moderate later in the year.
• Credit performance improved, but management stayed cautious. Retail auto net charge-offs fell to 157 bps and improved for a sixth straight quarter year over year, yet delinquencies remain elevated and the company is watching macro pressures like inflation and energy costs.
• Net interest margin expanded and guidance remains constructive, with NIM rising to 3.63% in the quarter, helped by lower deposit costs. Management still expects NIM to trend toward the upper 3% range over time and said the full-year guide remains intact.
• Capital and shareholder returns continued to improve, with CET1 at 10.1%, additional benefits from a completed credit risk transfer, and continued share repurchases. Ally also maintained its quarterly dividend and said its capital build is largely complete, leaving it positioned to keep returning capital while funding growth.

Ally Financial Stock Down 2.4%

ALLY opened at $44.42 on Wednesday. The stock has a fifty day moving average of $44.19 and a 200-day moving average of $42.63. The company has a market capitalization of $13.62 billion, a P/E ratio of 10.83, a P/E/G ratio of 0.26 and a beta of 1.09. Ally Financial has a fifty-two week low of $35.92 and a fifty-two week high of $47.29. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.93 and a current ratio of 0.93.

Ally Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.30 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.7%. Ally Financial’s dividend payout ratio (DPR) is currently 29.27%.

Key Ally Financial News

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

• Positive Sentiment: Ally reported second-quarter revenue of $2.28 billion, topping estimates, while revenue rose 9.8% year over year, suggesting solid underlying business momentum. Ally Financial reports second quarter 2026 financial results
• Positive Sentiment: Car loans jumped 21% and deposit growth benefited from Ally’s digital-first banking model, both signs that core lending and funding trends remain healthy. Ally Financial’s Car Loans Jump 21%, Beating Analysts’ Estimates Ally Financial’s ongoing shift toward digital-first banking benefits Q2 deposits
• Positive Sentiment: The board declared a quarterly cash dividend of $0.30 per share, reinforcing capital return to shareholders. Ally Financial declares dividend on common stock and Series C and Series D preferred stock

Analyst Ratings Changes

A number of equities analysts have commented on ALLY shares. Wells Fargo & Company lifted their price objective on shares of Ally Financial from $52.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, June 26th. Evercore reissued an “outperform” rating and issued a $54.00 price objective on shares of Ally Financial in a research report on Tuesday, April 21st. Bank of America raised their target price on shares of Ally Financial from $52.00 to $53.00 and gave the stock a “buy” rating in a research note on Wednesday, July 8th. The Goldman Sachs Group lifted their target price on shares of Ally Financial from $50.00 to $56.00 and gave the stock a “buy” rating in a report on Monday, April 20th. Finally, Citigroup decreased their price target on shares of Ally Financial from $70.00 to $58.00 and set a “buy” rating on the stock in a research note on Tuesday, June 23rd. Fourteen investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $53.79.

Insider Activity at Ally Financial

In related news, insider Stephanie N. Richard sold 5,000 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $42.14, for a total value of $210,700.00. Following the transaction, the insider directly owned 93,927 shares in the company, valued at approximately $3,958,083.78. This represents a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.46% of the company’s stock.

Institutional Trading of Ally Financial

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Compound Planning Inc. increased its holdings in shares of Ally Financial by 13.6% during the fourth quarter. Compound Planning Inc. now owns 7,572 shares of the financial services provider’s stock worth $343,000 after purchasing an additional 907 shares during the period. Invesco Ltd. raised its position in shares of Ally Financial by 18.7% in the fourth quarter. Invesco Ltd. now owns 943,547 shares of the financial services provider’s stock valued at $42,733,000 after buying an additional 148,409 shares in the last quarter. Corient Private Wealth LLC boosted its stake in shares of Ally Financial by 171.6% in the fourth quarter. Corient Private Wealth LLC now owns 98,606 shares of the financial services provider’s stock valued at $4,466,000 after buying an additional 62,306 shares during the period. Mercer Global Advisors Inc. ADV boosted its stake in shares of Ally Financial by 11.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 85,176 shares of the financial services provider’s stock valued at $3,858,000 after buying an additional 8,866 shares during the period. Finally, Vident Advisory LLC acquired a new stake in Ally Financial during the fourth quarter worth approximately $202,000. Institutional investors and hedge funds own 88.76% of the company’s stock.

Ally Financial Company Profile

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.