Regional banks have been in the news once again following New York Community Bancorp's disappointing fourth-quarter results. One regional bank stock that has shaken off the news around bank stocks over the last year is Ally Financial (ALLY 0.58%).The volatility surrounding regional banks last year has impacted Ally Financial, but the stock has recovered nicely, gaining 77% since its March 2023 low. The bank stands to benefit from a pivot in the Federal Reserve's interest rate policy, but investors must also ...

Overview - Ally Financial has seen a stock price increase of over 46% since October 2023, with the current dividend yield at 3.3%, down from 4.6% [1] - The company operates primarily in digital financial services, focusing on auto lending, insurance, mortgage lending, and corporate finance [1] - Interest rate changes are expected to be a significant catalyst for Ally's performance in 2024, with a maintained Buy rating and anticipated price appreciation [1] Interest Rate Sensitivity - The Federal Reserve is expected to cut rates mid-year, which may lead to a dramatic price increase for Ally [3] - Ally's stock price has historically reacted inversely to interest rate changes, with price spikes during low rates and dips when rates rise [3] Financial Performance - Ally reported a revenue of $8.2 billion for 2023, a 22% increase from 2020, with an annual growth rate of approximately 7.4% [4] - Higher interest rates have led to increased interest income from loans, benefiting Ally's core business [4] - Retail deposits increased to $14 billion, a 48% year-over-year increase, with 92% of deposits being FDIC insured [5] Customer Retention and Demographics - Ally achieved a customer retention rate of 97% in the last quarter, with younger generations (Gen Z and Millennials) making up a significant portion of new deposits [5] - The Ally app facilitates the use of multiple services, enhancing customer engagement and retention [5] Earnings and Cost Management - Ally reported an EPS of $0.16 and total net revenue of $2.1 billion, while reducing Risk-Weighted Assets by $4 billion [6] - The company has implemented cost-saving measures, achieving $80 million in annual savings through staff reductions [6] Auto Segment Performance - Loan originations in the auto segment totaled $9.6 billion, a 10.81% increase from the previous year [7] - Retail auto originations yield 10.7%, with 40% of this volume coming from high credit quality borrowers [7] Dividend and Valuation - The current quarterly dividend is $0.30 per share, with a payout ratio of 39% and expectations for a potential increase by the end of the year [8] - Ally's dividend has grown over 75% since 2019, outperforming major banks [9] - A DCF calculation suggests a fair price value of $52.17 per share by the end of 2024, indicating a potential upside of about 43% [10] Risk Profile - Ally's loan-to-deposit ratio is currently at 98%, indicating efficient use of customer deposits for lending [12] - The company has improved its financial picture over the last decade, despite a higher loan-to-deposit ratio compared to the average for US banks [14] Conclusion - Ally Financial is still considered a buy, with strong growth prospects across its business segments, particularly in auto lending [15] - The company is well-positioned for future growth, with a conservative payout ratio and potential for dividend increases [15]

Wall Street's Top Investment Bank Loves 5 Big Dividend Stocks in 2024 Chris Hondros / Getty Images Every year, the top Wall Street firms release a list of their top stock picks for the coming 12 months, and typically, they are companies that the stock analysts have incredibly high conviction in. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating depending on the company providing the coverage. At 24/7 Wall St., we like to cover the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023, or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-3754 ALLY FINANCIAL INC. (Exact name of registrant as specified in its charter) Delaware 38-0572512 (State or other jurisdicti ...

As the markets continue their upswing, there are plenty of stocks out there hitting new all-time highs. Given the general negative market sentiment just a year ago, this may have seemed unlikely, but the broad-based indexes continue to perform. The S&P 500 is now trading above 5,000 and is already up 5.4% just in 2024.While the broader market is doing well, not all stocks have rallied to the same degree. Take Ally Financial (ALLY -2.25%), for instance. The online bank has seen some investor hesitancy over t ...

If you've been steering clear of financial stocks lately, that's certainly an understandable decision. Just as last year's rising interest rates made lending a more profitable business, the interest rate cuts expected later this year could re-crimp lending's profitability. Loan delinquencies are on the rise as well. Both work against companies in the money business, as does the occasional lingering hint of economic lethargy. The relatively poor performance of most financial stocks since early last year sugg ...

CHARLOTTE, N.C., Feb. 14, 2024 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY) Chief Financial Officer Russ Hutchinson will present at the RBC Capital Markets Financial Institutions Conference on Wednesday, Mar. 6, 2024 at approximately 10:00 a.m. ET. A live webcast will be available on the day of the conference at http://www.ally.com/about/investor/ under the Events and Presentations section of the Investor Relations website. A replay will also be available. About Ally Financial Ally Financial Inc. (NYSE: ...

5 Warren Buffett Approved Dividend Stocks Chip Somodevilla / Getty Images If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors.Known for his long buy-and-hold strategies and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the enti ...

Rita Case, president, CEO, and dealer principal at Rick Case Honda in Davie, Florida, wins 55th annual award that recognizes business acumen and community givingLAS VEGAS, Feb. 3, 2024 /PRNewswire/ -- Rita Case, president, CEO, and dealer principal at Rick Case Honda in Davie, Florida, today was announced as the 2024 TIME Dealer of the Year at the 107th National Automobile Dealers Association (NADA) Show. Now in its 55th year, the TIME Dealer of the Year award is one of the auto industry's most respected an ...

Ally becomes presenting partner of the U.S. Women's Open; founding partner of the U.S. National Development Program New partnership moves Ally closer to equal spending goal across men's and women's sports paid media Ally Signs World No. 1 Golfer Lilia Vu 2024 U.S. Women's Open purse set for record $12M CHARLOTTE, N.C. and LIBERTY CORNER, N.J., Feb. 1, 2024 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY), a financial services company with the nation's largest all-digital bank and a leading brand in women's ...