Allison Transmission (NYSE:ALSN) Reaches New 12-Month Low - Time to Sell?

Key Points

• Allison Transmission shares reached a new 52-week low at $79.73, closing at $80.20 with a trading volume of 246,840 shares.
• Three investment analysts rated the stock as a Buy, five as Hold, and two as Sell, with an average price target of $98.38.
• The company reported a quarterly earnings per share of $2.29, exceeding estimates and representing a slight revenue decline of 0.2% compared to the previous year.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday . The company traded as low as $79.73 and last traded at $80.20, with a volume of 246840 shares traded. The stock had previously closed at $81.02.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Weiss Ratings restated a "buy (b-)" rating on shares of Allison Transmission in a research report on Wednesday. Bank of America raised their price target on Allison Transmission from $74.00 to $79.00 and gave the stock an "underperform" rating in a research report on Monday, June 16th. Zacks Research upgraded Allison Transmission from a "strong sell" rating to a "hold" rating in a research report on Friday, September 19th. Citigroup lowered their price target on Allison Transmission from $105.00 to $100.00 and set a "neutral" rating for the company in a research report on Tuesday, June 24th. Finally, Wall Street Zen downgraded Allison Transmission from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Allison Transmission presently has an average rating of "Hold" and an average target price of $98.38.

Allison Transmission Stock Performance

The company has a quick ratio of 2.64, a current ratio of 3.36 and a debt-to-equity ratio of 1.37. The business has a 50 day simple moving average of $87.48 and a two-hundred day simple moving average of $92.48. The firm has a market cap of $6.68 billion, a PE ratio of 9.09 and a beta of 1.01.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Monday, August 4th. The auto parts company reported $2.29 earnings per share for the quarter, topping analysts' consensus estimates of $2.20 by $0.09. The business had revenue of $814.00 million for the quarter, compared to analyst estimates of $811.05 million. Allison Transmission had a return on equity of 45.56% and a net margin of 23.81%.The business's revenue was down .2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.13 earnings per share. Allison Transmission has set its FY 2025 guidance at EPS. As a group, equities research analysts forecast that Allison Transmission Holdings, Inc. will post 9.06 earnings per share for the current fiscal year.

Allison Transmission Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Wednesday, August 20th were paid a dividend of $0.27 per share. The ex-dividend date was Wednesday, August 20th. This represents a $1.08 annualized dividend and a dividend yield of 1.4%. Allison Transmission's dividend payout ratio (DPR) is currently 12.27%.

Hedge Funds Weigh In On Allison Transmission

Several institutional investors have recently made changes to their positions in the company. AdvisorNet Financial Inc increased its stake in shares of Allison Transmission by 44.0% during the third quarter. AdvisorNet Financial Inc now owns 1,014 shares of the auto parts company's stock valued at $86,000 after buying an additional 310 shares during the period. Assenagon Asset Management S.A. boosted its position in Allison Transmission by 334.0% during the third quarter. Assenagon Asset Management S.A. now owns 204,870 shares of the auto parts company's stock valued at $17,389,000 after purchasing an additional 157,666 shares in the last quarter. Aaron Wealth Advisors LLC boosted its position in Allison Transmission by 547.8% during the third quarter. Aaron Wealth Advisors LLC now owns 16,441 shares of the auto parts company's stock valued at $1,396,000 after purchasing an additional 13,903 shares in the last quarter. Corient Private Wealth LLC boosted its position in Allison Transmission by 9.1% during the second quarter. Corient Private Wealth LLC now owns 38,017 shares of the auto parts company's stock valued at $3,611,000 after purchasing an additional 3,166 shares in the last quarter. Finally, Thompson Davis & CO. Inc. bought a new stake in Allison Transmission during the second quarter valued at about $1,406,000. Hedge funds and other institutional investors own 96.90% 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.

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