Ally - ALY

Ally Financial (NYSE:ALLY) Azioni

ALLY FINANCIAL INC

Ally Financial

Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending, with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.

Ally Financial Inc

ALLY

JP Morgan analyst Richard Shane maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Overweight and lowers the price target from $43 to $36.

News

Price Target

Analyst Ratings

JP Morgan Maintains Overweight on Ally Financial, Lowers Price Target to $36

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Below are some instances of options activity happening in the Financials sector: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>HOOD</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>04/17/25</td>
<td>$32.00</td>
<td>$50.0K</td>
<td>262</td>
<td>4.0K</td>
</tr>
<tr>
<td>RKT</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>09/19/25</td>
<td>$22.20</td>
<td>$27.9K</td>
<td>101</td>
<td>538</td>
</tr>
<tr>
<td>COIN</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/17/25</td>
<td>$185.00</td>
<td>$25.4K</td>
<td>688</td>
<td>527</td>
</tr>
<tr>
<td>V</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/15/27</td>
<td>$140.00</td>
<td>$36.0K</td>
<td>106</td>
<td>370</td>
</tr>
<tr>
<td>JPM</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/20/25</td>
<td>$230.00</td>
<td>$34.1K</td>
<td>3.8K</td>
<td>309</td>
</tr>
<tr>
<td>ARCC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/19/25</td>
<td>$15.00</td>
<td>$41.6K</td>
<td>0</td>
<td>289</td>
</tr>
<tr>
<td>ALLY</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/16/26</td>
<td>$35.00</td>
<td>$27.6K</td>
<td>1.1K</td>
<td>173</td>
</tr>
<tr>
<td>MET</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>03/20/26</td>
<td>$65.00</td>
<td>$79.0K</td>
<td>491</td>
<td>103</td>
</tr>
<tr>
<td>FUTU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>04/17/25</td>
<td>$110.00</td>
<td>$31.2K</td>
<td>417</td>
<td>18</td>
</tr>
<tr>
<td>NU</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>05/16/25</td>
<td>$15.00</td>
<td>$26.7K</td>
<td>604</td>
<td>5</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• For HOOD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>), we notice a call option trade that happens to be bearish, expiring in 10 day(s) on April 17, 2025. This event was a transfer of 100 contract(s) at a $32.00 strike. The total cost received by the writing party (or parties) was $50.0K, with a price of $500.0 per contract. There were 262 open contracts at this strike prior to today, and today 4044 contract(s) were bought and sold. 
• For RKT (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>), we notice a put option trade that happens to be bullish, expiring in 165 day(s) on September 19, 2025. This event was a transfer of 31 contract(s) at a $22.20 strike. The total cost received by the writing party (or parties) was $27.9K, with a price of $900.0 per contract. There were 101 open contracts at this strike prior to today, and today 538 contract(s) were bought and sold. 
• For COIN (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), we notice a call option sweep that happens to be bullish, expiring in 10 day(s) on April 17, 2025. This event was a transfer of 117 contract(s) at a $185.00 strike. This particular call needed to be split into 19 different trades to become filled. The total cost received by the writing party (or parties) was $25.4K, with a price of $219.0 per contract. There were 688 open contracts at this strike prior to today, and today 527 contract(s) were bought and sold. 
• For V (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), we notice a call option trade that happens to be bullish, expiring in 648 day(s) on January 15, 2027. This event was a transfer of 2 contract(s) at a $140.00 strike. The total cost received by the writing party (or parties) was $36.0K, with a price of $18020.0 per contract. There were 106 open contracts at this strike prior to today, and today 370 contract(s) were bought and sold. 
• Regarding JPM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), we observe a call option trade with bearish sentiment. It expires in 74 day(s) on June 20, 2025. Parties traded 34 contract(s) at a $230.00 strike. The total cost received by the writing party (or parties) was $34.1K, with a price of $1005.0 per contract. There were 3803 open contracts at this strike prior to today, and today 309 contract(s) were bought and sold. 
• Regarding ARCC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>), we observe a call option sweep with bearish sentiment. It expires in 165 day(s) on September 19, 2025. Parties traded 85 contract(s) at a $15.00 strike. This particular call needed to be split into 9 different trades to become filled. The total cost received by the writing party (or parties) was $41.6K, with a price of $490.0 per contract. There were 0 open contracts at this strike prior to today, and today 289 contract(s) were bought and sold. 
• For ALLY (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), we notice a put option trade that happens to be neutral, expiring in 284 day(s) on January 16, 2026. This event was a transfer of 40 contract(s) at a $35.00 strike. The total cost received by the writing party (or parties) was $27.6K, with a price of $690.0 per contract. There were 1108 open contracts at this strike prior to today, and today 173 contract(s) were bought and sold. 
• For MET (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MET#NYSE">MET</a>), we notice a put option trade that happens to be bearish, expiring in 347 day(s) on March 20, 2026. This event was a transfer of 100 contract(s) at a $65.00 strike. The total cost received by the writing party (or parties) was $79.0K, with a price of $790.0 per contract. There were 491 open contracts at this strike prior to today, and today 103 contract(s) were bought and sold. 
• For FUTU (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FUTU#NASDAQ">FUTU</a>), we notice a put option trade that happens to be bullish, expiring in 10 day(s) on April 17, 2025. This event was a transfer of 10 contract(s) at a $110.00 strike. The total cost received by the writing party (or parties) was $31.2K, with a price of $3120.0 per contract. There were 417 open contracts at this strike prior to today, and today 18 contract(s) were bought and sold. 
• Regarding NU (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NU#NYSE">NU</a>), we observe a put option trade with neutral sentiment. It expires in 39 day(s) on May 16, 2025. Parties traded 50 contract(s) at a $15.00 strike. The total cost received by the writing party (or parties) was $26.7K, with a price of $535.0 per contract. There were 604 open contracts at this strike prior to today, and today 5 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

ARCC

COIN

FUTU

HOOD

10 Financials Stocks With Whale Alerts In Today's Session

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Compass Point analyst Giuliano Bologna upgraded Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) from Neutral to Buy and raised the price target from $37 to $41. Ally Financial shares closed at $32.12 on Friday. <a href="https://www.benzinga.com/quote/ALY/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Jefferies analyst Jonathan Matuszewski upgraded the rating for The Scotts Miracle-Gro Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMG#NYSE">SMG</a>) from Hold to Buy and lowered the price target from $72 to $69. Scotts Miracle Gro shares closed at $51.41 on Friday. <a href="https://www.benzinga.com/quote/SMG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Citigroup analyst Paul Lejuez upgraded Dollar General Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) from Sell to Neutral and raisesd the price target from $69 to $101. Dollar General shares closed at $92.62 on Friday. <a href="https://www.benzinga.com/quote/DG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Baird analyst David George upgraded the rating for Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>) from Neutral to Outperform and maintained the price target of $47. Fifth Third Bancorp shares closed at $33.75 on Friday. <a href="https://www.benzinga.com/quote/FITB/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Redburn Atlantic analyst Hamilton Faber upgraded Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>) from Neutral to Buy and announced a $100 price target. Roku shares closed at $55.28 on Friday.  <a href="https://www.benzinga.com/quote/ROKU/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Considering buying ROKU stock? Here&#8217;s what analysts think: 
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Upgrades

Markets

FITB

ROKU

This Roku Analyst Turns Bullish; Here Are Top 5 Upgrades For Monday

B of A Securities analyst Brandon Berman maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Buy and lowers the price target from $42 to $38.

B of A Securities Maintains Buy on Ally Financial, Lowers Price Target to $38

Compass Point analyst Giuliano Bologna upgrades Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) from Neutral to Buy and raises the price target from $37 to $41.

Compass Point Upgrades Ally Financial to Buy, Raises Price Target to $41

Truist Securities analyst David Smith maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Buy and lowers the price target from $47 to $45.

Truist Securities Maintains Buy on Ally Financial, Lowers Price Target to $45

During the last three months, 11 analysts shared their evaluations of Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), revealing diverse outlooks from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">4</td>
<td align="right">4</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">3</td>
<td align="right">4</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $43.45, a high estimate of $50.00, and a low estimate of $34.00. Observing a 9.72% increase, the current average has risen from the previous average price target of $39.60. 
<img src="https://www.benzinga.com/files/images/story/2025/1743534091_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Ally Financial. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Ryan Nash</td>
<td>Goldman Sachs</td>
<td>Raises</td>
<td>Buy</td>
<td>$50.00</td>
<td>$45.00</td>
</tr>
<tr>
<td>David Smith</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$47.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Betsy Graseck</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$45.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$43.00</td>
<td>$40.00</td>
</tr>
<tr>
<td>Karl Shepard</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$45.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Ryan Nash</td>
<td>Goldman Sachs</td>
<td>Raises</td>
<td>Buy</td>
<td>$48.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Donald Fandetti</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Underweight</td>
<td>$34.00</td>
<td>$32.00</td>
</tr>
<tr>
<td>John Hecht</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$40.00</td>
<td>$35.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$40.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>David Smith</td>
<td>Truist Securities</td>
<td>Announces</td>
<td>Buy</td>
<td>$42.00</td>
<td>-</td>
</tr>
<tr>
<td>Jason Goldberg</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$44.00</td>
<td>$36.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Ally Financial. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ally Financial compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Ally Financial's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
For valuable insights into Ally Financial's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/ALLY/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Ally Financial analyst ratings.</a>
<h2>Delving into Ally Financial's Background</h2>
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending, with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.
<h3>Ally Financial's Financial Performance</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Challenges: Ally Financial's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -2.18%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Ally Financial's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -7.46%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.39%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.09%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.66, Ally Financial adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>How Are Analyst Ratings Determined?</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Verdict: Ally Financial In The Eyes Of 11 Experts

Goldman Sachs analyst Ryan Nash maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Buy and raises the price target from $45 to $50.

Goldman Sachs Maintains Buy on Ally Financial, Raises Price Target to $50

WIIM

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Bakkt Holdings, Inc. Class A Common Stock

BKKT

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ERIE

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SEIC

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SAN AIG BOH ING
&nbsp;
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Shares of several banking and broader financial stocks are trading higher in sympathy with overall market sentiment after the Fed policy decision to keep rates unchanged.

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CRBG

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SNEX

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Shares of companies within the broader financial sector are trading lower amid economic worries driven by tariffs and trade policies. Investors may be expecting a decline in investment and consumer spending, which may also be weighing on the industry.

Shares of companies in the broader financial services sector are trading lower amid overall market uncertainty after president Trump confirmed Mar 4 tariffs.

Ally Financial's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) short percent of float has risen 27.35% since its last report. The company recently reported that it has 8.69 million shares sold short, which is 2.84% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.85 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">List of the most shorted stocks</a>
<h3>Ally Financial Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1740774630_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ally Financial has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Ally Financial's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>, Ally Financial's peer group average for short interest as a percentage of float is 6.90%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze?adType=benzinga-insights&amp;ad=short-interest&amp;campaign=wallstreetadvantage">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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Shares of companies in the broader financial sector are trading lower amid overall market weakness on US consumer and economic concerns.

<figure class="wp-block-image aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="582" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-1024x582.jpg" alt="" class="wp-image-6165" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-1024x582.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-300x171.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg-768x436.jpg 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012248/Carvana-Hindenburg.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Hindenburg Bows Out</h2>
Last month, Nate Anderson, the founder of the famous short sellers Hindenburg Research,&nbsp;<a href="https://hindenburgresearch.com/gratitude/">announced</a>&nbsp;his decision to close shop. A couple of weeks earlier, his firm had announced what appears to have been its last short position, a bet against&nbsp;Carvana, Co.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>).&nbsp;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24CVNA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$CVNA</a> is a $44 billion online car dealer founded in 2012. Its main business is an online platform that allows retail customers to buy and sell used cars. (2/x) <a href="https://t.co/oTREKhX85u">pic.twitter.com/oTREKhX85u</a>
&mdash; Hindenburg Research (@HindenburgRes) <a href="https://twitter.com/HindenburgRes/status/1874833532641788012?ref_src=twsrc%5Etfw">January 2, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
In the first two posts of their fifty-one post X thread, Hindenburg described Carvana as &#8220;a father-son grift for the ages&#8221; and a &#8220;$44 billion online car dealer founded in 2012.&#8221;
Today it&#8217;s a $60 billion online car dealer, and we exited a bullish bet on it for a 193% gain. Here&#8217;s how.&nbsp;
<h2 class="wp-block-heading">The Gist Of Hindenburg&#8217;s Bearish Thesis</h2>
The gist of Hindenburg&#8217;s bearish thesis was that some past accounting irregularities at the company might&nbsp;jeopardize the company&#8217;s ability to get financing in the future. The day after Hindenburg&#8217;s short call, on January 3rd, the stock dropped 11.22%, to close at $177.16.&nbsp;
<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="800" height="335" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart.jpg" alt="" class="wp-image-6166" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart.jpg 800w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart-300x126.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012601/CVNA-Chart-768x322.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /></figure>
<h2 class="wp-block-heading">Why We Were Bullish On Carvana On January 7th</h2>
Two reasons.
The first was Carvana was a Portfolio Armor top ten name. Since December of 2022, our top ten names have returned 19.55%, on average, over the next six months, versus an average of 12.45% for the SPDR S&amp;P 500 Trust (SPY). 
And the second reason was that the day before, Hindenburg&#8217;s bearish thesis had been effectively invalidated, when Ally Financial, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) renewed its financing deal with the company. 
We mentioned both of those factors in&nbsp;<a href="https://portfolioarmor.substack.com/p/trade-alert-top-names-buying-the">our trade alert</a>&nbsp;on January 7th:&nbsp;
<figure class="wp-block-image aligncenter size-full"><a href="https://portfolioarmor.substack.com/p/trade-alert-top-names-buying-the"><img loading="lazy" decoding="async" width="922" height="813" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert.jpg" alt="" class="wp-image-6167" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert.jpg 922w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert-300x265.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012643/Trade-Alert-768x677.jpg 768w" sizes="(max-width: 922px) 100vw, 922px" /></a></figure>
<h2 class="wp-block-heading">Structuring The Trade</h2>
Since the next catalyst on the calendar was Carvana&#8217;s earnings release on February 19th, we looked at the closest options expiration date after that, which was February 21st. To avoid implied volatility crush, we decided to use a vertical call spread. We looked at both Portfolio Armor&#8217;s expected return for CVNA, as well as the at-the-money straddle before selecting strike prices.&nbsp;
The trade we settled on was a vertical spread expiring on February 21st, buying the $220 strike calls, and selling the $230 strike calls. We entered that trade for a net debit of $3.32 on January 7th.&nbsp;
<h2 class="wp-block-heading">Exiting The Trade&nbsp;</h2>
The maximum possible gain on a vertical spread like this is the difference between the strikes. In this case: $230 &#8211; $220 = $10. That occurs when the stock is trading above your higher strike, close to expiration. That&#8217;s when your short call leg (the one you have to buy back) has the least time value.&nbsp;
We held the trade through Carvana&#8217;s earnings report after the close on Wednesday. The stock dropped about 12% after its earnings miss, but it was still well above our higher strike on Thursday morning. We ended up exiting at a net credit of $9.74, for a 193% gain.&nbsp;
<ul>
<li>Call spread on Carvana (<a href="https://substack.com/discover/stocks/CVNA" target="_blank" rel="noreferrer noopener">CVNA 3.52%↑</a>). Entered at a net debit of $3.32 on 1/7/2025; exited at a net credit of $9.74 on <a href="https://portfolioarmor.substack.com/p/trade-alert-top-names-buying-the/comment/94868655" target="_blank" rel="noreferrer noopener">2/20/2025</a>. Profit: 193%.</li>
</ul>
<h2 class="wp-block-heading">The Takeaway</h2>
Trading doesn&#8217;t have to be complicated. Our bullish thesis on Carvana was a lot shorter than Hindenburg&#8217;s bearish thesis:&nbsp;
<ul>
<li>A reliable indicator (our system&#8217;s top ten names) was bullish on Carvana.</li>
<li>Ally Financial renewing Carvana&#8217;s financing deal invalidated Hindenburg&#8217;s short thesis.&nbsp;</li>
</ul>
If you would like a heads up when we enter our next trade, you can sign up to our trading Substack/occasional email list below.&nbsp;And if you want to add some downside protection here, you can download the Portfolio Armor optimal hedging app by aiming your iPhone camera at the QR code below (or by&nbsp;<a href="https://apps.apple.com/us/app/portfolio-armor/id394951144">tapping here</a>, if you&#8217;re reading this on your phone).&nbsp;
<figure class="wp-block-image size-full"><a href="https://apps.apple.com/us/app/portfolio-armor/id394951144"><img loading="lazy" decoding="async" width="200" height="197" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012755/QR-Code-2-1.jpg" alt="" class="wp-image-6168" /></a></figure>
If you&#8217;d like to stay in touch
You can scan for optimal hedges for individual securities, find our current top ten names, and&nbsp;create hedged portfolios&nbsp;on&nbsp;<a href="https://portfolioarmor.com/">our website</a>.&nbsp;You can also follow Portfolio Armor on X&nbsp;<a href="https://twitter.com/portfolioarmor">here</a>, or become a free subscriber to <a href="https://portfolioarmor.substack.com/">our trading Substack</a> using the link below (we&#8217;re using that for our occasional emails now).
<figure class="wp-block-image aligncenter size-full"><a href="https://portfolioarmor.substack.com/"><img loading="lazy" decoding="async" width="602" height="418" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012948/Widget-1-1.jpg" alt="How we made a 193% gain fading the famous short sellers. " class="wp-image-6169" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012948/Widget-1-1.jpg 602w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/02/21012948/Widget-1-1-300x208.jpg 300w" sizes="(max-width: 602px) 100vw, 602px" /></a></figure>

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Truist Securities analyst David Smith maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Buy and raises the price target from $42 to $47.

Truist Securities Maintains Buy on Ally Financial, Raises Price Target to $47

Morgan Stanley analyst Betsy Graseck maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Overweight and raises the price target from $41 to $45.

Morgan Stanley Maintains Overweight on Ally Financial, Raises Price Target to $45

JP Morgan analyst Richard Shane maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Overweight and raises the price target from $40 to $43.

JP Morgan Maintains Overweight on Ally Financial, Raises Price Target to $43

RBC Capital analyst Karl Shepard maintains Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) with a Outperform and raises the price target from $41 to $45.

RBC Capital Maintains Outperform on Ally Financial, Raises Price Target to $45

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Ally Bank's Customer Care Specialists are Allies for Customers on Banksgiving and Every Day

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Ally Financial schedules release of fourth quarter and full year 2024 financial results

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Ally Financial declares dividend on common stock and Series B and Series C preferred stock

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Ally Financial reports fourth quarter and full year 2024 financial results

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Invest Detroit and Ally Charitable Foundation Announce $1 Million Grant to Support City of Detroit's Strategic Neighborhood Fund

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