Allison Transmission Holdings, Inc. to Issue Quarterly Dividend of $0.27 (NYSE:ALSN)

Key Points

• Allison Transmission Holdings, Inc. has declared a quarterly dividend of $0.27 per share, with an annual yield of 1.2%, set to be paid on August 29th to investors of record as of August 20th.
• The company reported earnings of $2.29 per share, exceeding estimates, and generated $814 million in revenue for the quarter, although revenue was down 0.2% compared to the previous year.
• Shares of Allison Transmission stock experienced a slight increase during trading, reaching $88.31, with a market capitalization of $7.38 billion and a price-to-earnings ratio of 10.03.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) declared a quarterly dividend on Monday, August 11th, Wall Street Journal reports. Shareholders of record on Wednesday, August 20th will be paid a dividend of 0.27 per share by the auto parts company on Friday, August 29th. This represents a c) dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Wednesday, August 20th.

Allison Transmission has a payout ratio of 10.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Allison Transmission to earn $10.06 per share next year, which means the company should continue to be able to cover its $1.08 annual dividend with an expected future payout ratio of 10.7%.

Allison Transmission Stock Down 2.2%

Shares of NYSE ALSN traded down $1.96 during trading hours on Friday, hitting $86.91. The stock had a trading volume of 1,321,896 shares, compared to its average volume of 1,126,062. The company has a market capitalization of $7.27 billion, a P/E ratio of 9.88 and a beta of 0.97. The firm's 50-day moving average price is $92.04 and its two-hundred day moving average price is $96.83. Allison Transmission has a 52 week low of $80.39 and a 52 week high of $122.53. The company has a debt-to-equity ratio of 1.37, a quick ratio of 2.64 and a current ratio of 3.36.

Allison Transmission (NYSE:ALSN - Get Free Report) last posted its earnings results on Monday, August 4th. The auto parts company reported $2.29 EPS for the quarter, topping the consensus estimate of $2.20 by $0.09. The company had revenue of $814.00 million during the quarter, compared to the consensus estimate of $811.05 million. Allison Transmission had a net margin of 23.81% and a return on equity of 45.56%. The company's revenue for the quarter was down .2% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.13 earnings per share. Analysts anticipate that Allison Transmission will post 9.06 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. The Goldman Sachs Group upped their price objective on shares of Allison Transmission from $80.00 to $90.00 and gave the stock a "sell" rating in a report on Tuesday, May 27th. Raymond James Financial decreased their target price on Allison Transmission from $110.00 to $105.00 and set an "outperform" rating for the company in a research report on Monday, July 21st. Wall Street Zen cut shares of Allison Transmission from a "buy" rating to a "hold" rating in a report on Sunday, June 22nd. Bank of America increased their price objective on Allison Transmission from $74.00 to $79.00 and gave the company an "underperform" rating in a research report on Monday, June 16th. Finally, Morgan Stanley raised their price objective on Allison Transmission from $94.00 to $100.00 and gave the stock an "equal weight" rating in a research report on Tuesday, May 6th. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company's stock. According to MarketBeat, Allison Transmission presently has a consensus rating of "Hold" and an average target price of $98.38.

About Allison Transmission

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.