Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives $98.38 Consensus Target Price from Brokerages

Key Points

• Allison Transmission Holdings, Inc. has received an average consensus rating of "Reduce" from nine analysts, with three recommending a sell, four hold, and two buy.
• The company reported Q2 earnings of $2.29 EPS, exceeding expectations, but had a 0.2% decrease in revenue year-over-year.
• Allison Transmission announced a quarterly dividend of $0.27, translating to a 1.2% dividend yield with a payout ratio of 12.27%.

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) have received an average recommendation of "Reduce" from the nine brokerages that are covering the stock, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating on the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $98.3750.

A number of research analysts recently weighed in on the stock. Bank of America lifted their price objective on shares of Allison Transmission from $74.00 to $79.00 and gave the company an "underperform" rating in a research note on Monday, June 16th. Morgan Stanley lifted their price objective on shares of Allison Transmission from $94.00 to $100.00 and gave the company an "equal weight" rating in a research note on Tuesday, May 6th. Zacks Research lowered shares of Allison Transmission from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 19th. Wall Street Zen lowered shares of Allison Transmission from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Finally, Citigroup reduced their price target on shares of Allison Transmission from $105.00 to $100.00 and set a "neutral" rating for the company in a research report on Tuesday, June 24th.

Institutional Investors Weigh In On Allison Transmission

Hedge funds have recently added to or reduced their stakes in the company. 111 Capital bought a new stake in Allison Transmission in the fourth quarter worth $599,000. Jefferies Financial Group Inc. purchased a new position in shares of Allison Transmission during the fourth quarter valued at about $901,000. Public Employees Retirement System of Ohio grew its holdings in Allison Transmission by 35.0% in the fourth quarter. Public Employees Retirement System of Ohio now owns 57,788 shares of the auto parts company's stock worth $6,245,000 after purchasing an additional 14,994 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Allison Transmission by 10.3% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 304,230 shares of the auto parts company's stock valued at $32,875,000 after buying an additional 28,490 shares during the last quarter. Finally, KBC Group NV lifted its position in Allison Transmission by 3.7% during the first quarter. KBC Group NV now owns 3,596 shares of the auto parts company's stock valued at $344,000 after purchasing an additional 127 shares during the period. Institutional investors own 96.90% of the company's stock.

Allison Transmission Stock Down 1.6%

NYSE ALSN traded down $1.44 during trading hours on Monday, hitting $87.77. The company's stock had a trading volume of 387,206 shares, compared to its average volume of 806,234. Allison Transmission has a 52 week low of $80.39 and a 52 week high of $122.53. The company has a market capitalization of $7.34 billion, a PE ratio of 9.97 and a beta of 0.97. The company has a current ratio of 3.36, a quick ratio of 2.64 and a debt-to-equity ratio of 1.37. The company's 50-day simple moving average is $90.42 and its two-hundred day simple moving average is $95.31.

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 firm had revenue of $814.00 million for the quarter, compared to analysts' expectations of $811.05 million. Allison Transmission had a net margin of 23.81% and a return on equity of 45.56%. The company's quarterly revenue was down .2% compared to the same quarter last year. During the same quarter last year, the firm earned $2.13 EPS. Allison Transmission has set its FY 2025 guidance at EPS. Research analysts anticipate that Allison Transmission will post 9.06 EPS for the current fiscal year.

Allison Transmission Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Wednesday, August 20th will be given a $0.27 dividend. The ex-dividend date is Wednesday, August 20th. This represents a $1.08 annualized dividend and a yield of 1.2%. Allison Transmission's payout ratio is 12.27%.

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.