BTIG analyst Giuliano Bologna raised his price target on Ally Financial to $39 and kept his Buy rating after its Q2 earnings beat and announced $1.25B stock buyback program. The analyst notes that the company's new retail auto origination yields have increased to 7.6%, and the mix shift toward used vs. new car loan originations is expected to generate better risk adjusted returns over the next few quarters.

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Reports Q1 revenue $1.99B, consensus $1.96B. "Ally's financial and operating results in Q1 reflect the strength and scale of our market leading franchises," said Interim CEO Doug Timmerman. "Our teammates remain focused on what we can control, caring for our customers and communities, and consistently executing against our strategic priorities, driving long-term shareholder value. Dealer financial services continues to demonstrate the benefits of its high-tech, high-touch approach as we decisioned a single quarter record 3.8 million consumer auto applications. Consumer originations totaled nearly $10B with 40% of retail auto volume coming from our highest credit quality tier, positioning us for very attractive risk-adjusted returns going forward. Within Insurance, earned premiums of $349M were also a record, and our comprehensive product suite resulted in new OEM relationships that will drive continued momentum in fee revenue."