Why Ally Stock Is Charging Higher Today
Ally Financial (NYSE: ALLY) beat Wall Street earnings estimates and announced a divestiture that will boost its capital reserves. Investors cheered the results, sending shares of Ally up nearly 10% as of noon Eastern on Friday.
2023 was a challenging year for most financial services companies and a particularly treacherous one for auto lenders like Ally. Rising rates left banks scrambling to reprice loans and attract deposits, and the post-pandemic normalization in used car prices following a huge surge left many auto loans underwater.
Ally seems to be navigating the challenges fine. The company earned $0.45 per share in the fourth quarter on revenue of $2 billion, surpassing Wall Street expectations for $0.44 per share in earnings on $1.99 billion in revenue.
Source Fool.com
