Allison Transmission Holdings, Inc. (NYSE:ALSN) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Allison Transmission has a consensus analyst rating of “Moderate Buy” from eight covering firms, with an average 12-month price target of $130.50.
• The company recently reported better-than-expected quarterly results, posting EPS of $2.57 versus $2.10 expected and revenue of $1.41 billion, while revenue jumped 83.6% year over year.
• The stock was trading around $114.22, below the average analyst target, and the company also announced a quarterly dividend of $0.29 per share, equal to a 1.0% annualized yield.

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the eight research firms that are presently covering the firm, MarketBeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among analysts that have covered the stock in the last year is $130.50.

A number of equities research analysts have commented on ALSN shares. Weiss Ratings raised Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 2nd. Morgan Stanley increased their target price on Allison Transmission from $117.00 to $126.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 13th. JPMorgan Chase & Co. lifted their target price on Allison Transmission from $140.00 to $145.00 and gave the company a "neutral" rating in a research note on Monday. Citigroup lowered their price target on Allison Transmission from $135.00 to $125.00 and set a "neutral" rating on the stock in a report on Tuesday. Finally, Zacks Research downgraded Allison Transmission from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th.

Allison Transmission Stock Down 0.7%

Shares of ALSN stock opened at $114.22 on Thursday. The company has a market capitalization of $9.47 billion, a price-to-earnings ratio of 17.76, a PEG ratio of 0.62 and a beta of 0.95. Allison Transmission has a one year low of $76.01 and a one year high of $137.62. The company's fifty day moving average price is $116.46 and its 200-day moving average price is $116.44. The company has a debt-to-equity ratio of 2.23, a current ratio of 1.85 and a quick ratio of 1.18.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share for the quarter, beating analysts' consensus estimates of $2.10 by $0.47. The company had revenue of $1.41 billion for the quarter, compared to analysts' expectations of $1.38 billion. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. Allison Transmission's revenue for the quarter was up 83.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.23 EPS. Sell-side analysts expect that Allison Transmission will post 9.84 EPS for the current fiscal year.

Allison Transmission Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Monday, May 18th were issued a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Monday, May 18th. Allison Transmission's payout ratio is 18.04%.

Insider Buying and Selling at Allison Transmission

In related news, CFO Scott A. Mell sold 2,270 shares of the firm's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $125.00, for a total transaction of $283,750.00. Following the completion of the transaction, the chief financial officer directly owned 1,053 shares of the company's stock, valued at approximately $131,625. This trade represents a 68.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 1.10% of the company's stock.

Institutional Trading of Allison Transmission

Several hedge funds have recently bought and sold shares of the stock. Wedge Capital Management L L P NC boosted its holdings in shares of Allison Transmission by 7.9% during the 2nd quarter. Wedge Capital Management L L P NC now owns 146,537 shares of the auto parts company's stock valued at $16,521,000 after purchasing an additional 10,725 shares during the last quarter. Wasatch Advisors LP increased its holdings in shares of Allison Transmission by 105.7% in the second quarter. Wasatch Advisors LP now owns 1,510,496 shares of the auto parts company's stock worth $170,293,000 after purchasing an additional 776,169 shares during the last quarter. Dudley & Shanley Inc. lifted its position in shares of Allison Transmission by 0.3% in the second quarter. Dudley & Shanley Inc. now owns 165,037 shares of the auto parts company's stock worth $18,606,000 after buying an additional 440 shares in the last quarter. Assenagon Asset Management S.A. purchased a new stake in shares of Allison Transmission in the second quarter worth about $11,329,000. Finally, BankChampaign National Association purchased a new stake in shares of Allison Transmission in the first quarter worth about $812,000. Hedge funds and other institutional investors own 96.90% of the company's stock.

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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