6. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 54
Ally Financial Inc. (NYSE:ALLY) is a diversified financial services company offering a range of digital financial products and services to consumers, businesses, automotive dealers, and corporate clients. ALLY operates through several key segments: Automotive Finance, providing vehicle financing and leasing solutions; Insurance, offering vehicle service contracts and insurance products; Mortgage Finance, delivering a variety of mortgage and lending options; and Corporate Finance, supplying capital for equity sponsors and middle-market companies. Additionally, the company has a direct banking subsidiary, which offers online banking services, including savings accounts, checking accounts, and certificates of deposit.
Ally Financial Inc. (NYSE:ALLY) delivered adjusted EPS of $2.35, core pretax income of $1 billion and revenues of $8.2 billion in 2024. The company announced significant strategic changes, including the sale of its Credit Card business and cessation of new mortgage loan originations, aiming to streamline operations and focus on core franchises. In auto finance, the company demonstrated strong performance with $39 billion in consumer originations sourced from a record 14.6 million applications, with 44% of originations in the highest credit quality tier. Corporate Finance achieved record pretax income of more than $400 million and an ROE of 37% with zero net charge-offs.
The deposits franchise added more than 230,000 new customers, reaching 3.3 million depositors with $143 billion in balances, maintaining industry-leading customer satisfaction at 90% and retention above 95%. Ally Financial Inc. (NYSE:ALLY)’s credit performance showed improvement in Q4, with better-than-expected flow-to-loss rates and favorable used vehicle values. Looking ahead, ALLY expects net interest margin of approximately 3.4% to 3.5% for 2025, with retail auto net charge-offs projected at 2% to 2.25%. Management remains confident in achieving mid-teens ROTCE over time through margin expansion, normalization of retail auto NCOs below 2%, and disciplined resource allocation. Given the optimistic outlook, it is of no surprise that at least 2 insiders bought more than $100,000 worth of stock in the last six months.
