Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Allison Transmission Holdings, Inc. has received a consensus rating of "Hold" from eight research firms, with two analysts issuing sell recommendations and two providing buy ratings.
• The company's stock has a current market price of $87.03, with an average 1-year price target of $98.38 from brokers.
• Allison Transmission recently reported a quarterly EPS of $2.23, exceeding estimates, though its year-over-year revenue saw a 2.9% decline.

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) have been assigned a consensus recommendation of "Hold" from the eight ratings firms that are presently covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating on the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $98.38.

A number of equities analysts have weighed in on the company. Bank of America upped their target price on Allison Transmission from $74.00 to $79.00 and gave the stock an "underperform" rating in a research note on Monday, June 16th. Raymond James Financial dropped their target price on shares of 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 lowered shares of Allison Transmission from a "buy" rating to a "hold" rating in a report on Sunday, June 22nd. Citigroup cut their target price 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. Finally, JPMorgan Chase & Co. lowered their price target on Allison Transmission from $110.00 to $98.00 and set a "neutral" rating on the stock in a research report on Friday, April 11th.

Allison Transmission Price Performance

ALSN stock traded down $2.35 during mid-day trading on Thursday, reaching $87.72. 1,290,605 shares of the company traded hands, compared to its average volume of 902,193. The company has a fifty day moving average price of $95.03 and a 200-day moving average price of $98.78. Allison Transmission has a 52-week low of $78.71 and a 52-week high of $122.53. The company has a market capitalization of $7.39 billion, a P/E ratio of 10.15 and a beta of 0.97. The company has a debt-to-equity ratio of 1.44, a current ratio of 3.05 and a quick ratio of 2.37.

Allison Transmission (NYSE:ALSN - Get Free Report) last posted its earnings results on Thursday, May 1st. The auto parts company reported $2.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.97 by $0.26. The business had revenue of $766.00 million for the quarter, compared to analysts' expectations of $792.18 million. Allison Transmission had a net margin of 23.55% and a return on equity of 46.97%. The business's revenue for the quarter was down 2.9% compared to the same quarter last year. During the same period in the prior year, the company posted $1.90 EPS. As a group, analysts anticipate that Allison Transmission will post 9.06 earnings per share for the current year.

Allison Transmission Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Monday, May 19th were paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Monday, May 19th. Allison Transmission's dividend payout ratio is 12.50%.

Insider Buying and Selling at Allison Transmission

In other news, VP Ryan A. Milburn sold 3,412 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $105.24, for a total transaction of $359,078.88. Following the transaction, the vice president directly owned 11,924 shares of the company's stock, valued at approximately $1,254,881.76. The trade was a 22.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Allison Transmission

A number of large investors have recently modified their holdings of the stock. FMR LLC lifted its position in Allison Transmission by 1.9% during the 4th quarter. FMR LLC now owns 12,993,015 shares of the auto parts company's stock valued at $1,404,025,000 after acquiring an additional 247,318 shares during the period. Fuller & Thaler Asset Management Inc. grew its position in Allison Transmission by 3.0% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,652,996 shares of the auto parts company's stock worth $286,683,000 after purchasing an additional 76,840 shares during the period. Dimensional Fund Advisors LP boosted its position in Allison Transmission by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,867,799 shares of the auto parts company's stock worth $178,686,000 after purchasing an additional 10,208 shares during the last quarter. AQR Capital Management LLC increased its holdings in Allison Transmission by 4.3% during the first quarter. AQR Capital Management LLC now owns 1,610,913 shares of the auto parts company's stock valued at $151,281,000 after buying an additional 65,826 shares during the last quarter. Finally, Invesco Ltd. increased its position in Allison Transmission by 6.8% in the first quarter. Invesco Ltd. now owns 1,262,619 shares of the auto parts company's stock worth $120,795,000 after buying an additional 80,653 shares in the last quarter. Institutional investors own 96.90% of the company's stock.

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.