| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Ally Financial Inc. (NYSE:ALLY) shares are trading lower on Tuesday after the company’s CFO reportedly noted intensifying credit challenges among borrowers at a conference.
The firm’s CFO, Russell Hutchinson, revealed that the company’s credit troubles have deepened this quarter, with borrowers grappling more than ever with soaring inflation and living costs, reported Reuters.
Delinquencies in the company’s retail auto segment spiked by around 20 basis points in July and August versus initial projections, Hutchinson reported to investors at a New York financial conference.
“Our borrower is struggling with high inflation and cost of living, and now more recently, a weakening employment picture,” Hutchinson said.
Net charge-offs, representing debts deemed unlikely to be recovered, increased by approximately ten basis points in Ally’s retail auto sector during the same period, exceeding initial expectations, Reuters added.
Shares of bank stocks are trading lower after Fed Vice Chair for Supervision Barr unveiled Basel and GSIB surcharge re-proposals.
Last week’s jobs report missed expectations, casting a shadow over anticipated Federal Reserve rate cuts later this month, reported BNN Bloomberg. Based in Detroit, Ally is primarily recognized for its auto lending but also provides credit cards, checking and savings accounts, and home loans.
Hutchinson stated that the firm will prioritize capital and expense management going forward, but it is not revising its guidance at this moment, BNN Bloomberg report added.
According to Benzinga Pro, ALLY stock has lost over 19% in the past month. Investors can gain exposure to the stock via First Trust Financials AlphaDEX (NYSE:FXO) and Vanguard S&P Mid-Cap 400 Value ETF (NYSE:IVOV).
Price Action: ALLY shares are trading lower by 18.7% to $32.26 at last check Tuesday.
Photo: JHVEPhoto/Shutterstock.com
Read Next:
