CEO Buys More of This Warren Buffett Favorite: Ally Financial Is Up 30% Since Our Bullish Call — Buy More?

Ally Financial Inc. (NYSE: ALLY) 🚗💸
💲 $41.11 | 🔻 -2.10%
🕓 As of Jan-23-2026, 4:10 PM ET

🎯 FunStock Index™: 8.6 / 10
🧠 Deep value, strong profitability, insider conviction, and Buffett-backed discipline — not flashy, but highly effective.

🚦 Quick Context: A Bullish Call That Worked

Back on April 24, 2025, we published a bullish take on Ally Financial when the stock traded at $32.06. Fast forward nine months and ALLY is up nearly 30% — not meme-stock fireworks, but the kind of steady compounding value investors love.

What’s even more interesting?
👉 The CEO just bought nearly $1 million worth of shares at today’s levels.

Let’s unpack why this still looks compelling — even after the run.

🧠 What Ally Financial Actually Does (In Plain English)

Ally isn’t trying to be flashy fintech. It’s a disciplined, digital-first financial institution built around a few core strengths:

• 🚗 Auto Finance (its crown jewel)

• 🏦 All-digital consumer banking

• 🏢 Corporate Finance (middle-market lending)

• 🛡️ Insurance & dealer financial services

Formerly known as GMAC, Ally has spent the past decade slimming down, exiting non-core businesses, and focusing relentlessly on return on equity, risk discipline, and capital efficiency.

🔔 Trigger #1: CEO Buys Nearly $1M of Stock

On January 23, 2026, CEO Michael George Rhodes stepped up:

• 📈 23,800 shares purchased

• 💲 Avg price: $41.68

• 💰 Total value: ~$992,000

• 📊 Ownership increase: +8%

This isn’t a token purchase. That’s real money — and a strong signal of confidence after a 30% rally.

🏦 Trigger #2: Institutions Are All Over It

ALLY remains institutionally beloved:

• 🧱 84% held by institutions

• 📦 94% of float locked up

• 🏛️ 738 institutional holders

🐘 The Buffett Effect

Berkshire Hathaway still owns ~9.4% of the company — over $1.1B worth.

Add to that:

• Vanguard (8.90% of shares outstanding)

• BlackRock (8.83% of shares outstanding)

• Harris Associates (8.76% of shares outstanding)

• Wellington

• State Street

This is serious long-term capital.

🔍 For Ally Financial (ALLY)'s Institutional Ownership breakdown, see here. 

🐻 Trigger #3: Shorts Are Scarce

• 📉 Short interest: ~3.9%

• ⏳ Days to cover: ~3.2

Translation:
👉 This isn’t a crowded short or controversial story. The market largely agrees ALLY is solid.

📊 Trigger #4: Analysts Are (Mostly) Bullish

As of early 2026:

• 📈 Consensus: Buy / Moderate Buy

• 🎯 Targets: $45–$54

• 🔍 Coverage: 20+ analysts

Some holds remain due to auto-cycle concerns — fair enough — but outright bears are rare.

💰 Trigger #5: Valuation Still Looks Cheap

Even after the rally, ALLY remains undervalued on multiple fronts:

• 📉 Forward P/E: ~7.6

• 📘 Price / Book: ~0.96

• 📊 PEG ratio: ~0.28 (yes, really)

• 💵 Dividend yield: ~2.8%

This is classic value-investor candy 🍬

📉 Still Below ATH = Optional Upside

ALLY trades about 27% below its all-time high of $56.61 (June 2021).

A full retracement isn’t required for attractive returns — even partial normalization could do the job.

📈 Earnings Recap: Profits Up, Discipline Intact

From Ally’s FY 2025 results:

• 💰 Adjusted EPS: $3.81 (up sharply YoY)

• 🧮 Core ROTCE: 10–11%

• 🏦 Retail deposits: $144B (92% FDIC insured)

• 🔁 $2B authorized share buyback

• 📉 Expenses flat YoY

• 🚗 Auto originations at attractive yields (~9.7%)

Top line dipped slightly — but profitability, capital strength, and risk management improved meaningfully.

This is exactly what you want from a value compounder.

👉 Want the full picture? Dive into Ally Financial (ALLY)'s financials here.

⚠️ Risks (Because No Stock Is Perfect)

Let’s be honest:

• 🚗 Auto-cycle sensitivity (core exposure)

• 📉 Rising delinquencies (closely monitored)

• 💵 Interest rate volatility

• 🏦 Competition in digital banking

But Ally has:

• Tight underwriting

• Conservative provisioning

• A proven multi-cycle track record

This isn’t reckless growth — it’s managed risk.

💡💡💡 Curious about another deep oil exploration play?
Check our take on UnitedHealth Group.

⚡ Quick Take / TL;DR

• ✅ Stock up ~30% since our call

• ✅ CEO buying aggressively

• ✅ Buffett still onboard

• ✅ Cheap valuation remains

• ⚠️ Not a growth rocket — a value engine

ALLY isn’t exciting. It’s effective.

❓ FAQ

Is Ally still a buy after the rally?
At current valuations, yes — especially for value-oriented investors.

Is this a Buffett clone?
Not quite, but it fits the quality + valuation + discipline mold.

What’s the biggest risk?
A sharp downturn in auto credit — though Ally is better positioned than most.

Growth or income?
Primarily value + income, with optional upside.

🧑💼 About the Author

Frédéric Marsanne is the founder of FUNanc1al — part market analyst, part storyteller, part accidental comedian. A longtime investor and venture-builder across tech, biotech, and fintech, he blends sharp insights with humor to help readers laugh, learn, and invest a little wiser. When not decoding insider buys or poking fun at earnings calls, he’s building Cl1Q, writing fiction, painting, or discovering new passions to FUNalize.

🧾⚠️📢 Fun(anc1al) but Serious Disclaimer: 🧾⚠️📢

Buying any stock carries significant risk — and Ally doesn’t owe anyone a happy ending.

That said:
👉 Great value isn’t a lie… but invest in ALLY at your own risk.

Always DYOR, resist FOMO, and never invest money you can’t afford to lose. 

We are not financial advisors, and this is not investment advice. This article is for informational and entertainment purposes only.

We laugh, we analyze, we meme. 
We’re FUNancial advisors — not financial advisors. 😄📉📈
Consult a qualified financial professional if you must.

Invest at your own risk. Love at any pace. Laugh at every turn. 😄
Be Happy. 😄😄

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