Allison Transmission (NYSE:ALSN) Announces Quarterly Earnings Results, Beats Estimates By $0.25 EPS

Key Points

• Allison Transmission beat quarterly estimates: It reported earnings of $2.73 per share, $0.25 above consensus, while revenue reached $1.57 billion versus the $1.50 billion estimate.
• The company declared a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a 1.0% yield, with an 18.04% payout ratio.
• Shares rose to $116.33 after the results, while analysts maintained a consensus “Hold” rating with an average price target of $131.17; institutional investors own 96.9% of the stock.

Allison Transmission (NYSE:ALSN - Get Free Report) announced its earnings results on Monday. The auto parts company reported $2.73 earnings per share for the quarter, beating the consensus estimate of $2.48 by $0.25, FiscalAI reports. The business had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.50 billion. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%.

Allison Transmission Stock Performance

Shares of NYSE:ALSN traded up $1.79 during trading on Monday, reaching $116.33. 1,191,609 shares of the company's stock traded hands, compared to its average volume of 979,742. 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 12 month low of $76.01 and a 12 month high of $137.62. The company has a 50 day moving average of $116.55 and a 200-day moving average of $117.86. The stock has a market capitalization of $9.65 billion, a P/E ratio of 18.09, a price-to-earnings-growth ratio of 0.63 and a beta of 0.95.

Allison Transmission Announces Dividend

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

Insider Buying and Selling

In other news, CFO Scott A. Mell sold 2,270 shares of the company's stock in a transaction that occurred on 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 transaction, the chief financial officer directly owned 1,053 shares of the company's stock, valued at approximately $131,625. This represents a 68.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Allison Transmission

Several large investors have recently added to or reduced their stakes in the stock. Xponance LLC boosted its holdings in shares of Allison Transmission by 2.0% during the fourth quarter. Xponance LLC now owns 5,535 shares of the auto parts company's stock valued at $542,000 after acquiring an additional 107 shares during the period. Parallel Advisors LLC lifted its position in Allison Transmission by 8.7% in the 4th quarter. Parallel Advisors LLC now owns 1,710 shares of the auto parts company's stock valued at $167,000 after purchasing an additional 137 shares during the last quarter. &PARTNERS lifted its position in Allison Transmission by 3.2% in the 4th quarter. &PARTNERS now owns 4,726 shares of the auto parts company's stock valued at $463,000 after purchasing an additional 148 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in 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 purchasing an additional 165 shares during the period. Finally, National Bank of Canada FI grew its position in Allison Transmission by 0.7% in the 3rd quarter. National Bank of Canada FI now owns 24,362 shares of the auto parts company's stock worth $2,067,000 after purchasing an additional 177 shares during the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

ALSN has been the topic of several analyst reports. Weiss Ratings downgraded Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, July 16th. Citigroup dropped their price target on shares of Allison Transmission from $135.00 to $125.00 and set a "neutral" rating for the company in a research note on Tuesday, July 14th. Wells Fargo & Company increased their price objective 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. Morgan Stanley raised their price objective on shares of Allison Transmission from $126.00 to $130.00 and gave the stock an "equal weight" rating in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $131.17.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.