Allison Transmission Holdings, Inc. Declares Quarterly Dividend of $0.29 (NYSE:ALSN)

Key Points

• Allison Transmission declared a quarterly dividend of $0.29 per share (record date May 18, payable May 29), implying a $1.16 annual payout and a ~0.9% yield with a payout ratio of about 11.5%, indicating dividends are well covered by earnings.
• The company beat Q1 estimates with $2.57 EPS versus $2.10 expected and revenue of $1.41 billion (up 83.6% year-over-year); analysts forecast roughly 9.68 EPS for the current year and about $10.87 next year.
• Shares trade near $127.73 with a P/E of ~19.9 and a 52-week range of $76.01–$137.62; the consensus analyst rating is "Hold" with a $115.38 price target despite several recent target increases.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Stockholders of record on Monday, May 18th will be paid a dividend of 0.29 per share by the auto parts company on Friday, May 29th. This represents a c) dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, May 18th.

Allison Transmission has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 2 consecutive years. Allison Transmission has a payout ratio of 11.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Allison Transmission to earn $10.87 per share next year, which means the company should continue to be able to cover its $1.16 annual dividend with an expected future payout ratio of 10.7%.

Allison Transmission Trading Up 0.3%

Allison Transmission stock opened at $127.73 on Thursday. The company has a quick ratio of 4.17, a current ratio of 4.85 and a debt-to-equity ratio of 1.55. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $137.62. The company has a market capitalization of $10.62 billion, a price-to-earnings ratio of 19.87, a price-to-earnings-growth ratio of 0.76 and a beta of 1.01. The stock has a 50-day moving average price of $122.31 and a 200 day moving average price of $106.46.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping analysts' consensus estimates of $2.10 by $0.47. Allison Transmission had a return on equity of 37.93% and a net margin of 14.88%.The firm had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the previous year, the company posted $2.23 earnings per share. The company's revenue was up 83.6% compared to the same quarter last year. Sell-side analysts anticipate that Allison Transmission will post 9.68 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Citigroup lifted their target price on Allison Transmission from $130.00 to $135.00 and gave the stock a "neutral" rating in a report on Monday, April 13th. Oppenheimer boosted their price target on Allison Transmission from $115.00 to $135.00 and gave the company an "outperform" rating in a report on Tuesday, February 24th. Weiss Ratings downgraded Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, February 25th. Zacks Research downgraded Allison Transmission from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Finally, Wells Fargo & Company boosted their price objective on Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Allison Transmission currently has a consensus rating of "Hold" and a consensus price target of $115.38.

Allison Transmission Company Profile

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company's products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison's core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.

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