Morgan Stanley Cuts Ally Financial (ALLY) Price Target to $43

Morgan Stanley has downgraded Ally Financial, adjusting its price target to $43.00 on October 12, 2026, a 12.74% upside from the current price.

By EarningsIQ Research Desk · Published Oct 16, 2026, 2:29 PM EDT

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Morgan Stanley cut its price target on Ally Financial Inc. ($ALLY) to $43 from $55 on October 12, 2026, and rates the stock "Equal-Weight".

Since the rating, $ALLY is down 0.6% to date (from the $37.91 close on Oct 12, 2026).

ALLY Ally Financial Inc.

$37.68 -15.93% year to date

Daily close · Oct 16, 2026

Key Points

Ally Financial shares recently traded around $38.14, which is 11.3% below the new target price.
Morgan Stanley's $43 price target implies 12.74% upside from Ally Financial Inc.'s ($ALLY) current $38.14 share price.
The company's next earnings report is scheduled for October 20, 2026.

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Morgan Stanley has downgraded its rating on Ally Financial Inc. (NYSE: ALLY) to Equal-Weight on October 12, 2026. The firm reduced its price target from $55.00 to $43.00, reflecting a significant change in its outlook for the company.

Analyst rating track record

Morgan Stanley vs. the S&P 500

YTD return +0.93% hypothetical

All-time return +0.93% S&P 500 +0.64%

vs. S&P 500 +0.29% ahead of the index

Hypothetical returns from Morgan Stanley's disclosed trades, not real profit or advice. How we model this.

Other Institutional Activity in Ally Financial

Blackrock Inc. holds 28,632,394 shares of Ally Financial, worth about $1.08 billion after increasing its position by 97,020 shares, a 0.3% rise. Berkshire Hathaway, Inc. holds 27,000,000 shares valued at around $1.02 billion, but it reduced its stake by 2,001,074 shares, a decrease of 6.9%. Harris Associates L.P. has 26,105,434 shares worth about $983.9 million after trimming its position by 303,705 shares, a 1.1% decline. Vanguard Portfolio Management LLC increased its holdings by 750,200 shares, now owning 14,098,964 shares valued at approximately $531.4 million. Meanwhile, Vanguard Capital Management LLC holds 12,493,411 shares worth about $470.9 million, with a slight increase of 19,958 shares, which is a 0.2% rise.

Ally Financial Inc. Stock Down 4.6%

Ally Financial shares are currently trading around $38.14 as of October 16, 2026. This level is significantly below Morgan Stanley's new target price of $43.00, suggesting potential upside if the stock can recover. The shares are trading well below the previous target of $55.00, indicating a shift in market sentiment.

12-month forecast

$ALLY price target

Ally Financial Inc. daily closes and this analyst's $43 target. Not advice.

Recent Earnings

In its latest earnings report, Ally Financial reported trailing twelve-month revenue of approximately $7.9 billion, with an earnings per share (EPS) of $4.25. The company's revenue growth year-over-year is 11.0%, and it has a net margin of 18.4%. The next earnings date is on October 20, 2026, which could provide further insights into its financial health.

Insider Buying and Selling at Ally Financial Inc.

Recent insider transactions include Douglas R. Timmerman, an officer, who sold 39,675 shares at an average price of $45.17 on April 17, 2026, totaling about $1.79 million. Stephanie N. Richard, also an officer, sold 5,000 shares at $42.14 on May 15, 2026, valued at approximately $210,708. She sold another 5,000 shares at $44.23 on August 4, 2026, for about $221,168. These sales were not part of a planned selling program.

Analysts Set New Price Targets

On October 12, 2026, Morgan Stanley downgraded its rating on Ally Financial to Equal-Weight and set a target price of $43.00, down from $55.00. On the same day, JP Morgan maintained its Overweight rating with a target of $43.00, down from $48.00. Earlier, on October 6, both Raymond James and TD Cowen maintained their ratings of Strong Buy and Buy, respectively, with targets of $52.00 and $54.00, both also previously at $55.00.

About Ally Financial

Ally Financial Inc. is a digital financial-services company based in Detroit, Michigan. It provides a range of financial products and services, primarily in the automotive finance sector, as well as insurance and corporate finance operations. The company's focus on digital solutions has positioned it well within the financial services industry.

Bottom Line

Investors should keep an eye on Ally Financial's upcoming earnings report on October 20, 2026, as it may influence analysts' outlooks and stock performance. Morgan Stanley's downgrade is a significant shift, and further developments in the financial services sector could impact Ally's market position.