Allison Transmission (NYSE:ALSN) Announces Earnings Results

Allison Transmission (NYSE:ALSN - Get Free Report) announced its earnings results on Thursday. The auto parts company reported $2.23 EPS for the quarter, beating analysts' consensus estimates of $1.97 by $0.26, Zacks reports. The business had revenue of $766.00 million during the quarter, compared to analysts' expectations of $792.18 million. Allison Transmission had a return on equity of 47.95% and a net margin of 22.67%. The business's revenue was down 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.90 earnings per share. Allison Transmission updated its FY 2025 guidance to EPS.

Allison Transmission Trading Up 1.3 %

NYSE:ALSN traded up $1.29 on Monday, reaching $98.54. 887,312 shares of the company's stock were exchanged, compared to its average volume of 641,632. The business has a fifty day moving average of $93.82 and a 200-day moving average of $105.48. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45. Allison Transmission has a 52-week low of $71.49 and a 52-week high of $122.53. The firm has a market capitalization of $8.40 billion, a price-to-earnings ratio of 11.86 and a beta of 0.97.

Allison Transmission Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Monday, March 3rd were paid a dividend of $0.27 per share. This is a positive change from Allison Transmission's previous quarterly dividend of $0.25. The ex-dividend date was Monday, March 3rd. This represents a $1.08 annualized dividend and a yield of 1.10%. Allison Transmission's dividend payout ratio is presently 12.50%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on ALSN shares. Morgan Stanley lowered their target price on Allison Transmission from $112.00 to $94.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 16th. JPMorgan Chase & Co. reduced their price target on Allison Transmission from $110.00 to $98.00 and set a "neutral" rating on the stock in a report on Friday, April 11th. Citigroup cut their price objective on shares of Allison Transmission from $108.00 to $95.00 and set a "neutral" rating for the company in a research report on Tuesday, April 8th. StockNews.com raised shares of Allison Transmission from a "hold" rating to a "buy" rating in a research note on Friday. Finally, Raymond James cut their price target on shares of Allison Transmission from $115.00 to $110.00 and set an "outperform" rating for the company in a report on Monday, April 14th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $97.88.

Allison Transmission declared that its board has authorized a stock repurchase plan on Thursday, February 20th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 57.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Activity at Allison Transmission

In related news, VP Ryan A. Milburn sold 4,546 shares of the company's stock in a transaction that occurred on Thursday, March 6th. The shares were sold at an average price of $96.20, for a total transaction of $437,325.20. Following the sale, the vice president now directly owns 14,138 shares in the company, valued at approximately $1,360,075.60. This represents a 24.33 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP John Coll sold 1,788 shares of Allison Transmission stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $95.33, for a total transaction of $170,450.04. Following the completion of the transaction, the senior vice president now owns 15,388 shares of the company's stock, valued at $1,466,938.04. This represents a 10.41 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.10% of the company's stock.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.