Some Traders Are Very Bearish on Ally Financial Inc. (ALLY) After Forming Wedge Down

July 14, 2018 - By Darrell Taylor

Ally Financial Inc. (NYSE:ALLY) Logo

The stock of Ally Financial Inc. (ALLY) formed a down wedge with $25.41 target or 7.00 % below today’s $27.32 share price. The 9 months wedge indicates high risk for the $11.75B company. If the $25.41 price target is reached, the company will be worth $822.36 million less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock decreased 0.07% or $0.02 during the last trading session, reaching $27.32. About 1.62M shares traded. Ally Financial Inc. (NYSE:ALLY) has risen 40.71% since July 14, 2017 and is uptrending. It has outperformed by 28.14% the S&P500.

Analysts await Ally Financial Inc. (NYSE:ALLY) to report earnings on July, 26 before the open. They expect $0.72 EPS, up 24.14 % or $0.14 from last year’s $0.58 per share. ALLY’s profit will be $309.61 million for 9.49 P/E if the $0.72 EPS becomes a reality. After $0.68 actual EPS reported by Ally Financial Inc. for the previous quarter, Wall Street now forecasts 5.88 % EPS growth.

Ally Financial Inc. (NYSE:ALLY) Ratings Coverage

Among 14 analysts covering Ally Financial (NYSE:ALLY), 9 have Buy rating, 0 Sell and 5 Hold. Therefore 64% are positive. Ally Financial had 23 analyst reports since January 16, 2018 according to SRatingsIntel. Piper Jaffray maintained the shares of ALLY in report on Tuesday, January 30 with “Buy” rating. Oppenheimer maintained the stock with “Buy” rating in Thursday, April 12 report. The rating was maintained by BMO Capital Markets on Friday, March 16 with “Hold”. The stock of Ally Financial Inc. (NYSE:ALLY) earned “Buy” rating by Oppenheimer on Monday, April 2. Nomura initiated Ally Financial Inc. (NYSE:ALLY) on Tuesday, June 19 with “Hold” rating. The firm has “Buy” rating by Janney Capital given on Friday, June 29. On Monday, January 22 the stock rating was maintained by Sandler O’Neill with “Hold”. As per Tuesday, January 30, the company rating was maintained by Stephens. The company was maintained on Thursday, March 15 by BTIG Research. BMO Capital Markets maintained Ally Financial Inc. (NYSE:ALLY) on Monday, March 19 with “Market Perform” rating.

More important recent Ally Financial Inc. (NYSE:ALLY) news were published by: Seekingalpha.com which released: “Next round of bank stress tests” on June 28, 2018, also Seekingalpha.com published article titled: “Morgan Stanley, Bank of America, Ally, US Bank release capital return plans”, Prnewswire.com published: “Ally Home® Celebrates Baseball’s Home Run Slugfest in Washington, DC, with Special Event for All-Star Fans and …” on July 13, 2018. More interesting news about Ally Financial Inc. (NYSE:ALLY) was released by: 247Wallst.com and their article: “Oppenheimer Positive on Banks Into Earnings: 4 to Buy Now” with publication date: July 13, 2018.

Ally Financial Inc., a diversified financial services company, provides a range of financial services and products for consumers, businesses, automotive dealers, and corporate clients in the United States. The company has market cap of $11.75 billion. It offers dealer financial services, including automotive finance and insurance products, mortgage finance, and corporate finance. It has a 12.76 P/E ratio. The firm also provides automotive finance services for clients and automotive dealers, such as inventory financing and leasing for new and used vehicles; term loans, including real estate, automotive fleet financing, and transportation and equipment financing; and vehicle remarketing services, as well as vehicle service contracts and guaranteed asset protection (GAP) waiver products.

Ally Financial Inc. (NYSE:ALLY) Ratings Chart

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