Allison Transmission (NYSE:ALSN) Hits New 52-Week High - What's Next?

Key Points

• Allison Transmission hit a new 52-week high, trading as high as $131.62 (last $130.94) on Tuesday with about 121,448 shares changing hands.
• Analysts have lifted several price targets, but MarketBeat shows a consensus rating of "Hold" and an average price target of $114.13, which remains below the current share price.
• The company raised its quarterly dividend to $0.29 (annualized $1.16), implying a yield of 0.9% and a payout ratio around 15.8%.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) shares reached a new 52-week high on Tuesday . The company traded as high as $131.62 and last traded at $130.9370, with a volume of 121448 shares. The stock had previously closed at $129.74.

Analysts Set New Price Targets

A number of research firms have weighed in on ALSN. JPMorgan Chase & Co. raised their target price on shares of Allison Transmission from $87.00 to $115.00 and gave the stock a "neutral" rating in a research note on Wednesday, January 14th. Wells Fargo & Company raised their target price on shares of Allison Transmission from $98.00 to $127.00 and gave the stock an "equal weight" rating in a research note on Thursday, February 26th. Raymond James Financial raised their target price on shares of Allison Transmission from $110.00 to $115.00 and gave the stock a "strong-buy" rating in a research note on Monday, December 22nd. Weiss Ratings downgraded shares of Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, February 25th. Finally, Morgan Stanley raised their price target 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. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $114.13.

Allison Transmission Price Performance

The stock's fifty day moving average price is $119.36 and its 200-day moving average price is $102.99. The firm has a market cap of $10.93 billion, a price-to-earnings ratio of 17.88, a P/E/G ratio of 0.85 and a beta of 0.97. The company has a current ratio of 4.85, a quick ratio of 4.17 and a debt-to-equity ratio of 1.55.

Allison Transmission Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Monday, March 9th were issued 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 yield of 0.9%. Allison Transmission's payout ratio is 15.83%.

Insiders Place Their Bets

In related news, insider Eric C. Scroggins sold 1,313 shares of Allison Transmission 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 sale, the insider owned 17,654 shares in the company, valued at approximately $2,019,617.60. This trade represents a 6.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 1.10% of the company's stock.

Institutional Trading of Allison Transmission

Several institutional investors have recently added to or reduced their stakes in ALSN. Bank of Montreal Can increased its holdings in 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 last quarter. Norges Bank acquired a new stake in Allison Transmission in the 4th quarter valued at approximately $115,674,000. Boston Partners increased its holdings in Allison Transmission by 117.6% in the 3rd quarter. Boston Partners now owns 2,038,429 shares of the auto parts company's stock valued at $173,093,000 after purchasing an additional 1,101,824 shares during the last quarter. Millennium Management LLC increased its holdings in Allison Transmission by 191.7% in the 4th quarter. Millennium Management LLC now owns 1,257,353 shares of the auto parts company's stock valued at $123,095,000 after purchasing an additional 826,352 shares during the last quarter. Finally, UBS Group AG increased its holdings in Allison Transmission by 222.2% in the 3rd quarter. UBS Group AG now owns 960,548 shares of the auto parts company's stock valued at $81,531,000 after purchasing an additional 662,458 shares during the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

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.

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.