These 5 Stocks are Getting Crushed on Monday

3. Ally Financial Inc. (NYSE:ALLY)

Number of Hedge Fund Holders: 42

Shares of Ally Financial Inc. (NYSE:ALLY) moved down in pre-market trading Monday after Piper Sandler analyst Kevin Barker decreased his price target for the bank holding company from $34 per share to $31 per share.

Barker referred to a sharp surge in Fed funds and immense loan growth. He said these factors have significantly raised the funding costs for banks. Barker maintained an “Underweight” rating for Ally Financial Inc. (NYSE:ALLY).

Meanwhile, investment management firm Oakmark Funds also discussed Ally Financial Inc. (NYSE:ALLY) in its second-quarter 2022 investor letter, stating:

“As for Ally Financial, fears of a recession drove the stock price down more than 20% for the period, but business fundamentals have remained strong and the shares now trade for just a mid-single-digit multiple of current earnings. We believe today’s price ignores the funding cost improvements and well-capitalized nature of Ally’s balance sheet. We continue to own both investments given their significant discounts to our estimates of business value.”