Allison Transmission (NYSE:ALSN) Hits New 1-Year High - Should You Buy?

Key Points

• Shares hit a new 52-week high, trading as high as $136.94 and last around $136.69 on volume of about 804,366 shares (market cap ≈ $11.25 billion).
• Analysts are mixed: MarketBeat shows a consensus rating of Hold with an average price target of $114.13, even though several firms recently raised their individual targets and ratings.
• Allison raised its quarterly dividend to $0.29 (annualized $1.16, ~0.9% yield) and reports solid fundamentals (PE 18.44, PEG 0.81, current ratio 4.85), with high institutional ownership and notable hedge-fund buying activity.

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $136.94 and last traded at $136.6890, with a volume of 804366 shares traded. The stock had previously closed at $135.51.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. JPMorgan Chase & Co. lifted their target price on Allison Transmission from $87.00 to $115.00 and gave the stock a "neutral" rating in a report on Wednesday, January 14th. Citigroup boosted their price objective on Allison Transmission from $130.00 to $135.00 and gave the stock a "neutral" rating in a research note on Monday, April 13th. Zacks Research cut Allison Transmission from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. Oppenheimer boosted their price objective on Allison Transmission from $115.00 to $135.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 24th. Finally, Wells Fargo & Company boosted their price objective on Allison Transmission from $98.00 to $127.00 and gave the stock an "equal weight" rating in a research note on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $114.13.

Allison Transmission Stock Down 0.1%

The stock has a market cap of $11.25 billion, a PE ratio of 18.44, a price-to-earnings-growth ratio of 0.81 and a beta of 0.97. The company has a debt-to-equity ratio of 1.55, a current ratio of 4.85 and a quick ratio of 4.17. The business has a fifty day moving average of $120.79 and a 200-day moving average of $104.38.

Allison Transmission Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Monday, March 9th were paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 0.9%. This is a positive change from Allison Transmission's previous quarterly dividend of $0.27. The ex-dividend date of this dividend was Monday, March 9th. Allison Transmission's payout ratio is presently 15.83%.

Insider Buying and Selling

In related news, insider Eric C. Scroggins sold 1,313 shares of the business's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $114.40, for a total value of $150,207.20. Following the completion of the transaction, the insider owned 17,654 shares of the company's stock, valued at $2,019,617.60. The trade was a 6.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Allison Transmission

A number of large investors have recently bought and sold shares of ALSN. Jane Street Group LLC increased its position in shares of Allison Transmission by 341.3% during the first quarter. Jane Street Group LLC now owns 288,674 shares of the auto parts company's stock worth $27,617,000 after purchasing an additional 223,253 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of Allison Transmission by 5.7% during the first quarter. Goldman Sachs Group Inc. now owns 214,907 shares of the auto parts company's stock worth $20,560,000 after purchasing an additional 11,542 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Allison Transmission by 9.6% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,892 shares of the auto parts company's stock worth $180,000 after purchasing an additional 165 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of Allison Transmission by 441.5% during the second quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company's stock worth $97,000 after purchasing an additional 830 shares in the last quarter. Finally, Marshall Wace LLP acquired a new position in shares of Allison Transmission during the second quarter worth $6,111,000. Institutional investors own 96.90% of the company's stock.

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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