Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Average Rating of "Hold" from Analysts

Key Points

• Allison Transmission has a consensus analyst rating of “Hold”, with six of eight firms recommending hold and the average 12-month price target at about $127.17.
• The company recently beat quarterly expectations, reporting $2.57 EPS versus estimates of $2.10 and revenue of $1.41 billion, while revenue jumped 83.6% year over year.
• Allison Transmission also announced a quarterly dividend of $0.29 per share, equal to an annualized yield of about 1.0%; meanwhile, CFO Scott A. Mell sold shares in a recent insider transaction.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) has been given a consensus rating of "Hold" by the eight ratings firms that are covering the company, Marketbeat.com reports. Six research analysts have rated the stock with a hold recommendation, one has assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among brokers that have covered the stock in the last year is $127.1667.

ALSN has been the subject of several recent research reports. Weiss Ratings cut shares of Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday. Morgan Stanley increased their target price on shares of Allison Transmission from $117.00 to $126.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 13th. Citigroup increased their target price on shares of Allison Transmission from $130.00 to $135.00 and gave the stock a "neutral" rating in a report on Monday, April 13th. Oppenheimer increased their price target on shares of Allison Transmission from $115.00 to $135.00 and gave the company an "outperform" rating in a research note on Tuesday, February 24th. Finally, Wells Fargo & Company increased their price target on shares of Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th.

Allison Transmission Stock Performance

Shares of ALSN opened at $119.15 on Friday. Allison Transmission has a 12 month low of $76.01 and a 12 month high of $137.62. The firm has a fifty day simple moving average of $121.36 and a 200 day simple moving average of $113.80. The stock has a market capitalization of $9.88 billion, a price-to-earnings ratio of 18.53, a PEG ratio of 0.64 and a beta of 0.94. The company has a current ratio of 1.85, a quick ratio of 1.18 and a debt-to-equity ratio of 2.23.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its earnings results on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping the consensus estimate of $2.10 by $0.47. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. The business had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter in the prior year, the company posted $2.23 earnings per share. The firm's revenue was up 83.6% on a year-over-year basis. Research analysts forecast that Allison Transmission will post 9.86 EPS for the current fiscal year.

Allison Transmission Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Monday, May 18th were paid a $0.29 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.16 dividend on an annualized basis and a yield of 1.0%. Allison Transmission's dividend payout ratio (DPR) is currently 18.04%.

Insider Buying and Selling

In other Allison Transmission news, CFO Scott A. Mell sold 2,270 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $125.00, for a total value of $283,750.00. Following the completion of the sale, the chief financial officer owned 1,053 shares in the company, valued at $131,625. This trade represents a 68.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Caprock Group LLC raised its stake in Allison Transmission by 191.5% in the 4th quarter. Caprock Group LLC now owns 26,051 shares of the auto parts company's stock worth $2,550,000 after purchasing an additional 17,114 shares in the last quarter. Natixis Advisors LLC raised its stake in Allison Transmission by 5.3% in the 4th quarter. Natixis Advisors LLC now owns 285,022 shares of the auto parts company's stock worth $27,903,000 after purchasing an additional 14,445 shares in the last quarter. SG Americas Securities LLC raised its position in shares of Allison Transmission by 109.9% in the 4th quarter. SG Americas Securities LLC now owns 17,014 shares of the auto parts company's stock valued at $1,666,000 after buying an additional 8,910 shares in the last quarter. UBS Group AG raised its position in shares of Allison Transmission by 30.4% in the 4th quarter. UBS Group AG now owns 1,252,197 shares of the auto parts company's stock valued at $122,590,000 after buying an additional 291,649 shares in the last quarter. Finally, Systematic Financial Management LP raised its position in shares of Allison Transmission by 52.2% in the 4th quarter. Systematic Financial Management LP now owns 29,585 shares of the auto parts company's stock valued at $2,896,000 after buying an additional 10,145 shares in the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

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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