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

June 29, 2018 - By Crystal Maker

Ally Financial Inc. (NYSE:ALLY) Logo

The stock of Ally Financial Inc. (ALLY) formed a down wedge with $24.51 target or 8.00 % below today’s $26.64 share price. The 7 months wedge indicates high risk for the $11.46 billion company. If the $24.51 price target is reached, the company will be worth $916.48 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 increased 3.62% or $0.93 during the last trading session, reaching $26.64. About 1.91M shares traded. Ally Financial Inc. (NYSE:ALLY) has risen 40.71% since June 29, 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. They expect $0.72 earnings per share, up 24.14 % or $0.14 from last year’s $0.58 per share. ALLY’s profit will be $309.62 million for 9.25 P/E if the $0.72 EPS becomes a reality. After $0.68 actual earnings per share 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 18 analysts covering Ally Financial (NYSE:ALLY), 11 have Buy rating, 0 Sell and 7 Hold. Therefore 61% are positive. Ally Financial had 29 analyst reports since January 2, 2018 according to SRatingsIntel. Oppenheimer initiated Ally Financial Inc. (NYSE:ALLY) on Monday, January 8 with “Buy” rating. The stock of Ally Financial Inc. (NYSE:ALLY) has “Buy” rating given on Tuesday, January 30 by Keefe Bruyette & Woods. Sandler O’Neill maintained Ally Financial Inc. (NYSE:ALLY) on Monday, January 22 with “Hold” rating. The firm earned “Buy” rating on Tuesday, January 16 by BTIG Research. The stock of Ally Financial Inc. (NYSE:ALLY) earned “Overweight” rating by Morgan Stanley on Friday, April 27. The firm has “Buy” rating given on Wednesday, January 10 by Jefferies. Oppenheimer maintained Ally Financial Inc. (NYSE:ALLY) on Thursday, April 12 with “Buy” rating. As per Wednesday, January 31, the company rating was maintained by Credit Suisse. The stock of Ally Financial Inc. (NYSE:ALLY) earned “Hold” rating by BMO Capital Markets on Friday, March 16. BTIG Research maintained Ally Financial Inc. (NYSE:ALLY) on Thursday, March 15 with “Buy” rating.

More notable recent Ally Financial Inc. (NYSE:ALLY) news were published by: Seekingalpha.com which released: “Morgan Stanley, Bank of America, Ally, US Bank release capital return plans” on June 28, 2018, also Seekingalpha.com with their article: “Federal Reserve objects to Deutsche Bank USA’s capital return plan” published on June 28, 2018, Benzinga.com published: “Benzinga’s Top Upgrades, Downgrades For June 29, 2018” on June 29, 2018. More interesting news about Ally Financial Inc. (NYSE:ALLY) were released by: 247Wallst.com and their article: “Top Analyst Upgrades and Downgrades: Accenture, Ally, Diageo, Harley-Davidson, KB Home, NetApp, Nike, Sirius XM …” published on June 29, 2018 as well as Seekingalpha.com‘s news article titled: “Here come the Fed’s stress tests” with publication date: June 21, 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 $11.46 billion. It offers dealer financial services, including automotive finance and insurance products, mortgage finance, and corporate finance. It has a 12.44 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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