Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States and Canada. The company operates through Automotive Finance operations, Insurance operations, and Corporate Finance operations. It offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing; and financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The company also provides consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers; VSCs, VMCs, and GAP products; and underwrite select commercial insurance coverages, which primarily insure dealers' vehicle inventory. In addition, it provides senior secured asset-based and leveraged cash flow loans to middle-market companies; leveraged loans; commercial real estate product to serve companies in the nursing facilities, senior housing, and medical office buildings; and treasury activities, such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and equity investments. Further, the company offers deposits and securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.
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Berkshire Hathaway adds $17 billion to Alphabet stake in Q2 2026
Berkshire Hathaway added roughly $17 billion to its stake in Google parent Alphabet during the second quarter, making the tech company the third-largest position in its equity portfolio. According to CNBC, Berkshire's second-quarter SEC filing shows it owns close to 106 million shares across Alphabet's Class A and Class C categories, with a combined market value of around $36.6 billion, ranking Alphabet above Coca-Cola at $35.1 billion but still well short of American Express at $51.9 billion and the top holding, Apple, at $69.7 billion. Berkshire added 48.1 million Alphabet shares during the quarter, with approximately 60% of the newly acquired shares, representing roughly $10 billion, obtained directly from Alphabet through a private placement deal disclosed in early June, and the balance acquired through open-market purchases. Berkshire also expanded its Delta Air Lines bet considerably, lifting that stake by 44%, an outlay of roughly $1.6 billion, to reach 57.3 million shares now worth about $5.1 billion, while on a smaller scale it lifted its Macy's holdings by 142%, translating to only about $100 million in new exposure, and put roughly $280 million more into homebuilder Lennar. On the sell side, Berkshire trimmed its Bank of America position by 5.9%, reducing the value of that holding by approximately $1.7 billion, the largest dollar cut of the quarter, with the cumulative effect of eight straight quarters of selling being a 53% reduction in Berkshire's overall Bank of America stake, and it also cut its Capital One Financial stake by 58% and trimmed its Ally Financial holdings by 7%. Alphabet's entry into Berkshire's top holdings follows the company's $85 billion equity raise earlier this year to fund its artificial intelligence expansion, which helped push U.S. equity issuance to a record $251 billion in the first half of 2026, according to Bloomberg data, while Berkshire held approximately $365.5 billion in cash as of June 30, down 8% from March 31.
Ally Financial Declares $0.30 Dividend, Payout Ratio at 26%
Ally Financial Inc announced a total dividend of $0.30 per share, with the ex-dividend date set for 2026-07-31 and payment on 2026-08-14. The company's dividend payout ratio stands at 0.26 as of 2026-06-30, indicating a conservative distribution of earnings. Ally Financial has maintained a consistent quarterly dividend since 2016 and is recognized as a dividend achiever for annual increases over the past decade. The trailing and forward dividend yields are both 2.79%, while the five-year dividend growth rate is 9.60% per year. However, recent growth metrics show challenges, with three-year revenue, EPS, and five-year EBITDA growth rates all negative, underperforming a majority of global competitors.
Ally Financial names Sean Leary head of consumer servicing operations for auto finance
Ally Financial has appointed Sean Leary as Head of Consumer Servicing Operations for its Auto Finance business, reporting to Doug Timmerman, President of Dealer Financial Services. Leary previously served as Chief Financial Planning and Investor Relations Officer, and his investor relations duties will now be led by Dan Ignacio, who becomes Executive Director of Investor Relations & Corporate FP&A under CFO Russ Hutchinson. Leary has been with Ally since 2008 and will transition to the new role over the next few weeks.
Ally Financial Reports 22% Jump in Adjusted EPS to $1.21 for Q2 2026
Ally Financial reported second-quarter adjusted earnings per share of $1.21, a 22% increase year over year, driven by margin expansion and asset growth. Core return on tangible common equity reached 11.8%, up 80 basis points, while adjusted total net revenue rose 10% to $2.3 billion. Net interest margin excluding original issue discount improved 11 basis points sequentially to 3.63%, supported by lower funding costs and disciplined deposit pricing. Consumer auto originations surged 21% to $13.3 billion on record application volume of 4.6 million, and retail auto net charge-offs fell 18 basis points to 157 basis points, marking the sixth straight quarter of year-over-year improvement. The company raised its full-year average earning assets growth guidance to 3% to 5% from 2% to 4% and tightened its consolidated net charge-off outlook to 1.2% to 1.3%. Ally also executed $148 million in share repurchases during the quarter and issued $1 billion of preferred stock at 7.1% to support the redemption of its Series B preferred stock.
Ally Financial Shows Potential for Another Earnings Beat
Ally Financial has a history of beating earnings estimates and may do so again in its next quarterly report. The auto finance company and bank posted an average earnings surprise of 13.64% over the last two quarters, including a 19.35% beat in the most recent quarter with earnings of $1.11 per share versus a $0.93 consensus estimate. Analysts have recently raised estimates, giving Ally Financial a positive Earnings ESP of +0.05% and a Zacks Rank #3, a combination that historically produces a positive surprise nearly 70% of the time. The company's next earnings report is expected on July 21, 2026.
StockStory flags Kratos as mid-cap to watch, Church & Dwight and Ally Financial as sells
StockStory highlights Kratos as a mid-cap stock with strong upside, citing 14.6% organic revenue growth and a 29.9% sales growth outlook, while recommending selling Church & Dwight and Ally Financial. Church & Dwight faces flat sales projections and underperforming organic revenue, and Ally Financial struggles with declining earnings per share and a high net-debt-to-EBITDA ratio of 8 times. Kratos trades at 60.4 times forward P/E, Church & Dwight at 24.8 times, and Ally Financial at 8 times.
Carvana's first new-car dealership sold over 700 vehicles in May, dwarfing prior averages
Carvana's first new-car dealership in Casa Grande, Arizona, sold over 700 new vehicles in May, according to Stellantis data shared with CNBC, far exceeding the same store's prior average of 30 to 50 sales per month before Carvana took over. The company acquired seven Stellantis dealerships for $171 million to enter new-car sales while maintaining its online-only sales model, replacing traditional salespeople with a small staff to assist with online browsing and test drives. New-car sales are typically less profitable than parts and service or finance and insurance, which together generated 78% of AutoNation's gross profit in the first quarter of 2026 despite accounting for only 24% of revenue. Carvana offers online financing through loans backed by Ally Financial and will continue operating service bays at its dealerships. The strong early performance suggests Carvana's online strategy could disrupt the legacy new-car retail market and create synergies with its used-car business.
Ally Financial's Margin Poised for Tailwind as $18 Billion in High-Cost CDs Mature
Ally Financial's net interest margin is expected to widen in the second half of the year as $18 billion in high-cost certificates of deposit mature, allowing the digital bank to replace them with lower-rate funding. The company reported a first-quarter net interest margin of 3.5%, up 17 basis points year over year, and guided for 3.6% to 3.7% for the full year. Net income reached $291 million, or $0.93 per share, compared with a net loss of $253 million a year earlier, driven by an 8% increase in net financing revenue and a 24% decline in noninterest expenses. Ally also saw record auto loan applications of 4.4 million and originations of $11.5 billion, with average loan yields rising to 9.27%. The stock trades at 8 times forward earnings.
PayPal, Ameriprise Financial, and Ally Financial shares fall after Trump declares Iran ceasefire over
Shares of PayPal, Ameriprise Financial, and Ally Financial fell in afternoon trading after President Trump declared the Iran ceasefire over and vowed fresh strikes, triggering a broad risk-off move. Diversified financials are sensitive to market levels, transaction activity, and credit conditions, all of which deteriorate when volatility spikes. PayPal dropped 3%, Ameriprise Financial fell 3%, and Ally Financial declined 2.9%. The sell-off reflects investor concerns that heightened geopolitical risk and potential further Fed rate hikes could pressure earnings tied to financial market health.
BGC Group Named Momentum Stock to Buy, Hayward and Ally Financial Flagged as Sells
StockStory identified BGC Group as a momentum stock to target this week, while recommending selling Hayward and Ally Financial. BGC, a global brokerage and financial technology platform, posted exceptional 24.8% annual revenue growth over the last two years and 24.6% annual earnings per share growth, with an 11.7% five-year return on equity. Hayward, a pool equipment maker, saw muted 2% annual revenue growth over five years and falling earnings per share, with its free cash flow margin shrinking by 8.9 percentage points. Ally Financial, a digital-first bank, recorded 2.7% annual sales growth over two years and a 4.8% annual decline in earnings per share over five years, while its 8× net-debt-to-EBITDA ratio raises refinancing concerns. All three stocks are near their 52-week highs, with BGC at $11.42, Hayward at $16.50, and Ally at $46.25 per share.
SoFi and Ally Financial Report Divergent First-Quarter Results
SoFi Technologies and Ally Financial reported contrasting first-quarter 2026 results, with SoFi posting 43% revenue growth to $1.10 billion and Ally beating adjusted earnings per share estimates at $1.11 versus a $0.94 consensus. SoFi's loan originations surged 68% to a record $12.18 billion, while its Technology Platform segment revenue fell 27% after a large client departure. Ally's revenue of $2.10 billion missed estimates, but its auto franchise drove a record 4.4 million consumer applications and $11.5 billion in originations, up 13% year over year, with retail auto net charge-offs improving to 1.97%. SoFi trades at 28 times forward earnings with a 34% year-to-date drawdown, while Ally trades at 9 times forward earnings and offers a 2.64% dividend yield.
Consumer finance stocks beat Q1 revenue estimates by 1.9%
The 20 consumer finance stocks tracked by StockStory reported a satisfactory first quarter, with revenues beating analysts' consensus estimates by 1.9% and next quarter's revenue guidance coming in 0.7% above expectations. Credit Acceptance posted revenues of $406 million, up 1.4% year on year but missing estimates by 13.1%, while Sallie Mae delivered the best performance with revenues of $560 million, down 3.6% year on year but beating estimates by 3.9%. Nelnet was the weakest, with revenues of $353.2 million, down 7.1% year on year and missing estimates by 20.4%. Ally Financial reported revenues of $2.18 billion, up 5.5% year on year and beating estimates by 1.8%, and Affirm posted revenues of $1.04 billion, up 32.6% year on year and beating estimates by 4.3%. Share prices of the group have been resilient, rising 7.2% on average since the latest earnings results.
Ally Financial first-quarter adjusted EPS surges 90% to $1.11
Ally Financial posted adjusted earnings per share of $1.11 for the first quarter of 2026, a 90% surge from $0.58 a year earlier and more than 18% above Wall Street consensus of $0.94. GAAP net income swung to $319 million, or $0.93 per share, from a net loss of $225 million, or $0.82 per share, in the first quarter of 2025. Total net revenue jumped 36% year-over-year to $2.10 billion, driven by surging dealer financial services and elevated yields on new auto loans, while core return on tangible common equity improved to 11.1%. Berkshire Hathaway held 29 million shares of Ally Financial as of the first quarter of 2026, after first disclosing a stake in early 2022 and subsequently increasing it by over 234%.