Allison Transmission (NYSE:ALSN) Announces Quarterly Earnings Results, Beats Estimates By $0.47 EPS

Key Points

• Allison Transmission reported $2.57 EPS for the quarter, beating the consensus by $0.47 and showing strong profitability with a 20.7% net margin and 37.4% ROE.
• The company raised its quarterly dividend to $0.29 (annualized $1.16, ~0.9% yield), up from $0.27, with a dividend payout ratio of about 15.8%.
• Shares slid about 1.5% to $129.22 on higher-than-average volume; analysts' consensus is a Hold with an average target of $114.13, implying the stock is trading above the street's average valuation.

Allison Transmission (NYSE:ALSN - Get Free Report) posted its quarterly earnings data on Monday. The auto parts company reported $2.57 earnings per share for the quarter, topping the consensus estimate of $2.10 by $0.47, Zacks reports. Allison Transmission had a net margin of 20.70% and a return on equity of 37.41%.

Allison Transmission Trading Down 1.5%

Shares of ALSN stock traded down $2.01 on Monday, hitting $129.22. The stock had a trading volume of 1,173,438 shares, compared to its average volume of 855,465. Allison Transmission has a twelve month low of $76.01 and a twelve month high of $137.62. The firm has a market cap of $10.74 billion, a P/E ratio of 17.63, a PEG ratio of 0.79 and a beta of 1.01. The company has a current ratio of 4.85, a quick ratio of 4.17 and a debt-to-equity ratio of 1.55. The company has a fifty day moving average price of $121.93 and a two-hundred day moving average price of $105.82.

Allison Transmission Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Monday, March 9th were issued a dividend of $0.29 per share. The ex-dividend date of this dividend was Monday, March 9th. This represents a $1.16 dividend on an annualized basis and a yield of 0.9%. This is a boost from Allison Transmission's previous quarterly dividend of $0.27. Allison Transmission's dividend payout ratio (DPR) is presently 15.83%.

Insider Buying and Selling

In other Allison Transmission news, insider Eric C. Scroggins sold 1,313 shares of Allison Transmission stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $114.40, for a total transaction of $150,207.20. Following the transaction, the insider directly owned 17,654 shares in the company, valued at approximately $2,019,617.60. The trade was a 6.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Allison Transmission

A number of hedge funds have recently modified their holdings of the business. Fuller & Thaler Asset Management Inc. grew its position in shares of Allison Transmission by 16.4% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 3,313,661 shares of the auto parts company's stock valued at $324,407,000 after purchasing an additional 466,366 shares during the period. Boston Partners grew its position in shares of Allison Transmission by 13.6% in the 4th quarter. Boston Partners now owns 2,316,240 shares of the auto parts company's stock valued at $226,879,000 after purchasing an additional 277,811 shares during the period. Bank of Montreal Can grew its position in shares of Allison Transmission by 4,032.3% in the 4th quarter. Bank of Montreal Can now owns 2,151,871 shares of the auto parts company's stock valued at $210,668,000 after purchasing an additional 2,099,797 shares during the period. AQR Capital Management LLC grew its position in shares of Allison Transmission by 18.9% in the 2nd quarter. AQR Capital Management LLC now owns 1,915,887 shares of the auto parts company's stock valued at $181,741,000 after purchasing an additional 304,974 shares during the period. Finally, State Street Corp grew its position in shares of Allison Transmission by 1.1% in the 2nd quarter. State Street Corp now owns 1,652,290 shares of the auto parts company's stock valued at $156,951,000 after purchasing an additional 17,783 shares during the period. Institutional investors and hedge funds own 96.90% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Morgan Stanley lifted their target price on shares of Allison Transmission from $109.00 to $117.00 and gave the stock an "equal weight" rating in a report on Monday, March 16th. Wells Fargo & Company lifted their target price on shares of Allison Transmission from $98.00 to $127.00 and gave the stock an "equal weight" rating in a report on Thursday, February 26th. Weiss Ratings lowered shares of Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, February 25th. JPMorgan Chase & Co. lifted their target price on shares of Allison Transmission from $87.00 to $115.00 and gave the stock a "neutral" rating in a report on Wednesday, January 14th. Finally, Zacks Research lowered shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $114.13.

About Allison Transmission

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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