Allison Transmission (NYSE:ALSN) Hits New 12-Month High Following Analyst Upgrade

Key Points

• Allison Transmission hit a new 52‑week high after Citigroup raised its price target to $135 (from $130); the stock traded as high as $128.95 and last traded around $128.33.
• Several analysts have raised targets (e.g., Oppenheimer to $135, Wells Fargo to $127), but consensus remains a Hold with an average price target of $112.56, which is below the current share price.
• The company raised its quarterly dividend to $0.29 (annualized $1.16, ~0.9% yield); insiders own 1.10% while institutional investors hold 96.90%, with several large funds significantly increasing their stakes.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) reached a new 52-week high during trading on Monday after Citigroup raised their price target on the stock from $130.00 to $135.00. Citigroup currently has a neutral rating on the stock. Allison Transmission traded as high as $128.95 and last traded at $128.3310, with a volume of 74119 shares traded. The stock had previously closed at $128.51.

Several other research firms have also recently commented on ALSN. Oppenheimer upped their target price on shares of Allison Transmission from $115.00 to $135.00 and gave the stock an "outperform" rating in a research report on Tuesday, February 24th. Raymond James Financial increased their price objective on shares of Allison Transmission from $110.00 to $115.00 and gave the company a "strong-buy" rating in a report on Monday, December 22nd. Wells Fargo & Company increased their price objective on shares of Allison Transmission from $98.00 to $127.00 and gave the company an "equal weight" rating in a report on Thursday, February 26th. Zacks Research cut shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Allison Transmission from $87.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, January 14th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Allison Transmission presently has an average rating of "Hold" and an average price target of $112.56.

Insiders Place Their Bets

In related news, insider Eric C. Scroggins sold 1,313 shares of the firm'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 transaction of $150,207.20. Following the completion of the sale, the insider directly owned 17,654 shares in the company, valued at approximately $2,019,617.60. This trade represents 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. Insiders own 1.10% of the company's stock.

Institutional Trading of Allison Transmission

A number of large investors have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. boosted its holdings in Allison Transmission by 16.4% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 3,313,661 shares of the auto parts company's stock worth $324,407,000 after buying an additional 466,366 shares in the last quarter. Boston Partners boosted its holdings in Allison Transmission by 13.6% during the fourth quarter. Boston Partners now owns 2,316,240 shares of the auto parts company's stock worth $226,879,000 after buying an additional 277,811 shares in the last quarter. Bank of Montreal Can lifted 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 acquiring an additional 2,099,797 shares in the last quarter. AQR Capital Management LLC lifted 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 acquiring an additional 304,974 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of Allison Transmission by 1.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,907,768 shares of the auto parts company's stock valued at $161,926,000 after acquiring an additional 32,996 shares in the last quarter. 96.90% of the stock is currently owned by institutional investors.

Allison Transmission Trading Up 0.2%

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 firm has a market cap of $10.70 billion, a PE ratio of 17.59, a P/E/G ratio of 0.86 and a beta of 0.97. The company's 50-day moving average is $117.62 and its 200 day moving average is $101.19.

Allison Transmission Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Monday, March 9th were given a $0.29 dividend. This is a boost from Allison Transmission's previous quarterly dividend of $0.27. The ex-dividend date was Monday, March 9th. This represents a $1.16 annualized dividend and a dividend yield of 0.9%. Allison Transmission's payout ratio is currently 15.83%.

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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