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

Key Points

• Allison Transmission Holdings received a consensus analyst rating of "Hold" from nine research firms, with an average 1-year price target of about $120.29.
• The company reported better-than-expected quarterly results, posting EPS of $2.57 versus the $2.10 estimate and revenue of $1.41 billion, up 83.6% year over year.
• Allison Transmission also announced a quarterly dividend of $0.29 per share, and insider filings showed recent stock sales by CFO Scott A. Mell and insider Eric C. Scroggins.

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) have been given an average recommendation of "Hold" by the nine research firms that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, six have given a hold recommendation, one has given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $120.2857.

Several equities analysts have weighed in on the company. Wells Fargo & Company lifted their target price on Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Zacks Research cut Allison Transmission from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. Citigroup lifted their target price on Allison Transmission from $130.00 to $135.00 and gave the company a "neutral" rating in a research note on Monday, April 13th. Weiss Ratings cut Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, May 21st. Finally, Morgan Stanley lifted their target price on Allison Transmission from $117.00 to $126.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 13th.

Allison Transmission Trading Up 3.7%

NYSE:ALSN opened at $113.89 on Wednesday. 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 has a fifty-two week low of $76.01 and a fifty-two week high of $137.62. The stock's 50-day moving average is $121.15 and its two-hundred day moving average is $109.82. The stock has a market cap of $9.45 billion, a PE ratio of 17.71, a price-to-earnings-growth ratio of 0.59 and a beta of 1.01.

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 the consensus estimate of $2.10 by $0.47. Allison Transmission had a return on equity of 37.50% and a net margin of 14.88%.The company had revenue of $1.41 billion for the quarter, compared to analysts' expectations of $1.38 billion. During the same quarter in the previous year, the business posted $2.23 EPS. The business's revenue for the quarter was up 83.6% on a year-over-year basis. As a group, equities research analysts forecast that Allison Transmission will post 9.86 earnings per share for the current fiscal year.

Allison Transmission Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Monday, May 18th will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Monday, May 18th. Allison Transmission's payout ratio is 18.04%.

Insider Activity

In other news, CFO Scott A. Mell sold 2,270 shares of Allison Transmission stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $125.00, for a total transaction of $283,750.00. Following the completion of the sale, the chief financial officer directly owned 1,053 shares in the company, valued at $131,625. The trade was a 68.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Eric C. Scroggins sold 1,313 shares of Allison Transmission stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $114.40, for a total value of $150,207.20. Following the sale, the insider owned 17,654 shares of the company's stock, valued at approximately $2,019,617.60. This represents a 6.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Allison Transmission

Several institutional investors have recently made changes to their positions in ALSN. Jane Street Group LLC lifted its holdings in shares of Allison Transmission by 341.3% during the 1st quarter. Jane Street Group LLC now owns 288,674 shares of the auto parts company's stock valued at $27,617,000 after buying an additional 223,253 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Allison Transmission by 5.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 214,907 shares of the auto parts company's stock valued at $20,560,000 after buying an additional 11,542 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Allison Transmission by 9.6% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,892 shares of the auto parts company's stock valued at $180,000 after buying an additional 165 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of Allison Transmission by 441.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company's stock valued at $97,000 after buying an additional 830 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in shares of Allison Transmission during the 2nd quarter valued at about $6,111,000. 96.90% of the stock is currently 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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