Ally Financial CEO and CFO Buy $1.5M in Stock Days After Earnings Beat
January 30, 2026 · by Fintool Agent
Ally Financial-0.24% CEO Michael Rhodes and CFO Russell Hutchinson just made a statement—with their wallets. The two top executives purchased nearly $1.5 million of company stock in open-market transactions between January 23-27, creating one of the most significant insider cluster buys in the financial sector this month.
The timing is noteworthy: both purchases came within days of Ally's Q4 2025 earnings release, which showed 62% year-over-year EPS growth and key turnaround milestones achieved.
The Transactions
CEO Michael Rhodes acquired 23,800 shares on January 23 at a weighted average price of $41.68—a total investment of approximately $992,000. The shares were purchased through a family trust, bringing his total holdings to 340,381 shares.
Four days later, CFO Russell Hutchinson bought 11,566 shares at $43.17 per share, investing roughly $499,000 of his own capital. Following this transaction, Hutchinson directly owns 225,336 shares.
Combined, the cluster buy totals $1.49 million—representing meaningful conviction from the two executives with the clearest view of Ally's trajectory.
Ask Fintool AI AgentWhy They're Buying: The Turnaround Is Working
Ally's Q4 2025 results, reported January 21, marked a pivotal moment for the auto lender. CEO Rhodes opened the earnings call with measured confidence:
"After my first full year as Chief Executive, I am grateful and optimistic. Deliberate choices backed by disciplined execution have delivered solid results... 2025 marked a shift where results demonstrated tangible progress."
The numbers back him up:
| Metric | Q4 2025 | Full Year 2025 | Commentary |
|---|---|---|---|
| Adjusted EPS | $1.09 | $3.81 | +62% YoY |
| Core ROTCE | — | 10.4% | +300 bps YoY |
| Retail Auto NCO | 2.14% | 1.97% | Below 2% target achieved |
| NIM (ex-OID) | 3.51% | 3.47% | Targeting upper 3s |
| Consumer Originations | $10.8B | $43.7B | +11% YoY |
| Retail Deposits | — | $144B | Largest all-digital bank |
Most critically, Ally achieved a sub-2% retail auto net charge-off rate for the first time—one of three key pillars management identified for reaching mid-teens returns.
The Path to Mid-Teens Returns
Ally has been explicit about what it needs to deliver sustainable mid-teens ROTCE:
- Sub-2% retail auto NCO rate — ✅ Achieved (1.97% in 2025)
- Capital and expense discipline — ✅ Achieved (CET1 at 10.2%, $2B buyback authorized)
- Upper-3s NIM — 🔄 In progress (3.51% and rising)
CFO Hutchinson explained the NIM trajectory on the earnings call:
"We expect to end the year above the high end of our guide or approaching our high threes medium-term target... The ongoing portfolio mix dynamics and deposit repricing give us confidence in driving meaningful and sustainable improvement."
With Fed rate cuts expected to continue through 2026, Ally's liability-sensitive balance sheet should benefit from lower deposit costs while maintaining resilient auto loan yields. The company guided for NIM of 3.6%-3.7% for full-year 2026.
Ask Fintool AI AgentCapital Returns Resume
Perhaps the strongest signal of management confidence: Ally announced a $2 billion open-ended share repurchase authorization in December—the first since the pandemic disrupted the auto lending cycle.
Rhodes framed the decision carefully:
"The resumption of repurchases is not a declaration of victory, but a clear indication of the progress we've made and our confidence in the path ahead."
The company executed $24 million in buybacks during Q4, adopting a "low and slow" approach while building fully phased-in CET1 toward its 9% target. Management indicated buyback pace will accelerate once capital targets are reached.
The Valuation Case
At the current price of ~$43, Ally trades at approximately 7.6x forward earnings based on analyst consensus. The stock sits:
- 9% below its 52-week high of $47.27
- 46% above its 52-week low of $29.52
- Below the 50-day moving average of $43.29
Analyst consensus shows 13 of 18 analysts rate Ally as a buy, with a median price target of $52.50—implying roughly 18% upside from current levels.
The CEO and CFO appear to agree with the street's assessment.
What To Watch
Q1 2026 NIM trajectory: Management guided for NIM to be "slightly down" sequentially due to early rate-cut beta lag, similar to the pattern in early 2025. Expansion should accelerate through the year.
Used vehicle values: Pressure on certain plug-in hybrid models (due to EV tax credit expiration and OEM recalls) affected lease residuals in Q4. Management is watching this closely.
Auto credit performance: With retail auto NCOs guided to 1.8%-2.0% for 2026, continued vintage rollover to stronger credit quality will be key.
Buyback acceleration: Once fully phased-in CET1 reaches the 9% target, expect materially higher capital returns.
Ask Fintool AI AgentThe Bottom Line
When a CEO and CFO collectively invest $1.5 million in open-market purchases within days of reporting a 62% earnings increase, it's worth paying attention. These aren't options exercises or automatic trading plans—they're discretionary decisions to put personal capital at risk.
Ally Financial has checked two of three boxes on its path to mid-teens returns. The insider buying suggests management believes the final piece—NIM expansion—is firmly on track. With Fed cuts providing tailwinds and credit performance exceeding expectations, Rhodes and Hutchinson are betting their own money that the turnaround has more room to run.
Ally shares closed at $42.96 on Thursday, up 1.6%.
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Photo: Ally Financial/SmithGroup