Ally Financial Boosts Q1 2026 EPS Forecast to $1.01

Equities research analysts at Zacks Research have increased their earnings per share (EPS) forecast for Ally Financial Inc. (NYSE: ALLY) for the first quarter of 2026. In a report released on December 11, 2023, analysts now predict that the financial services provider will achieve an EPS of $1.01, up from an earlier estimate of $1.00. This adjustment reflects growing confidence in the company’s financial performance, which continues to bolster its market position.

The consensus estimate for Ally Financial’s full-year earnings currently stands at $3.57 per share. Looking ahead, Zacks Research has also projected earnings for subsequent quarters, forecasting $1.28 EPS for Q2 2026, $1.38 for Q3 2026, and $1.43 for Q4 2026. For the full year of 2026, the estimate rises to $5.10, with Q3 2027 earnings expected at $1.53 and full-year 2027 earnings at $6.03.

Ally Financial recently reported its quarterly earnings on July 28, 2023, revealing an EPS of $0.99 for the period. The company achieved a return on equity of 9.96% and a net margin of 8.10%, with revenues totaling $2.06 billion for the quarter.

Several other analysts have provided updates on Ally Financial’s stock performance. TD Cowen upgraded the stock from a “hold” to a “buy” rating, raising the target price from $43.00 to $50.00 on October 20, 2023. Conversely, Keefe, Bruyette & Woods reduced their price target from $56.00 to $51.00, maintaining an “outperform” rating. Weiss Ratings reaffirmed a “buy (b-)” rating on December 8, 2023, while Wall Street Zen downgraded the stock from “buy” to “hold” on November 9, 2023.

Market sentiment remains cautiously optimistic, with twelve analysts rating the stock as a Buy and five giving it a Hold rating. According to MarketBeat.com, Ally Financial has an average rating of “Moderate Buy” and a consensus price target of $45.67.

Stock Performance and Financial Health

As of the most recent trading session on Monday, Ally Financial’s stock opened at $45.22. The company has experienced a 52-week range, with a low of $29.52 and a high of $46.24. The stock’s fifty-day simple moving average stands at $40.27, while the 200-day average is at $39.60. Ally Financial maintains a current ratio of 0.92, a quick ratio of 0.92, and a debt-to-equity ratio of 1.31. The current market capitalization is approximately $13.93 billion, with a price-to-earnings ratio of 27.24.

Recently, the company announced a quarterly dividend of $0.30 per share, which was paid on November 14, 2023. Shareholders on record as of October 31, 2023 received this dividend, translating to an annual yield of 2.7% and a payout ratio of 72.29%. Additionally, on December 10, 2023, Ally Financial’s Board of Directors approved a share buyback program authorizing the repurchase of up to $2.00 billion in shares, representing approximately 15.3% of total shares outstanding.

Insider Activity and Institutional Investment

In related developments, insider Kathleen L. Patterson sold 29,000 shares of Ally Financial on October 22, 2023, at an average price of $40.86, totaling around $1,184,940. Following this sale, Patterson retains ownership of 100,203 shares, valued at approximately $4,094,294.58. This transaction reflects a 22.45% decrease in Patterson’s ownership and was reported to the Securities and Exchange Commission.

Institutional investors have shown considerable interest in Ally Financial. Recent transactions include WPG Advisers LLC acquiring a new position worth approximately $25,000, while SVB Wealth LLC invested around $27,000. Allworth Financial LP increased its stake by 385.2%, now holding 752 shares valued at $29,000 after purchasing an additional 597 shares. Hantz Financial Services Inc. also significantly increased its stake by 662.0%, now owning 823 shares valued at $32,000. Overall, institutional investors own about 88.76% of Ally Financial’s stock.

Ally Financial Inc., a digital financial services company, operates across various segments including Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations, serving clients in the United States, Canada, and Bermuda.