Warren Buffett is Buying and Holding These 5 Financial Stocks in 2022

2. Ally Financial Inc. (NYSE:ALLY)

Number of Hedge Fund Holders: 48

Ally Financial Inc. (NYSE:ALLY) is a Michigan-based digital financial services company, serving individual, commercial, and corporate customers in the United States and Canada. It operates through four segments – Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations. 

Securities filings for Q1 2022 reveal that Ally Financial Inc. (NYSE:ALLY) is a new arrival in Warren Buffett’s Berkshire Hathaway portfolio, with the hedge fund buying close to 9 million shares worth almost $390 million. 

Ally Financial Inc. (NYSE:ALLY) reported its Q1 results on April 14, posting earnings per share of $2.03, beating analysts’ predictions by $0.10. The $2.14 billion revenue also surpassed estimates by $2.97 million. 

On April 18, Wells Fargo analyst Donald Fandetti reiterated an Overweight rating on Ally Financial Inc. (NYSE:ALLY) and lowered the price target on the shares to $50 from $57. The analyst noted that Ally Financial Inc. (NYSE:ALLY) reported Q1 adjusted EPS of $2.03, ahead of his $1.91 estimate and consensus of $1.93. Overall, the results were good and the company seems positioned to surpass the upper limit of its 16%-18%+ ROTCE guidance for the year, the analyst added.

In the first fiscal quarter of 2022, Harris Associates reported owning a $1.15 billion position in Ally Financial Inc. (NYSE:ALLY). In Q4 2021, 48 hedge funds were long Ally Financial Inc. (NYSE:ALLY), compared to 57 funds in Q3.