Allison Transmission (NYSE:ALSN) Announces Quarterly Earnings Results

Key Points

• Allison Transmission reported earnings of $2.29 per share for the quarter, beating expectations by $0.07.
• The company announced a quarterly dividend of $0.27 per share, representing a yield of 1.2% and a payout ratio of 12.50%.
• Institutional investors and hedge funds own 96.90% of Allison Transmission, indicating strong institutional interest in the stock.

Allison Transmission (NYSE:ALSN - Get Free Report) released its quarterly earnings data on Monday. The auto parts company reported $2.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.20 by $0.09, Zacks reports. Allison Transmission had a net margin of 23.81% and a return on equity of 46.30%. The business had revenue of $814.00 million during the quarter, compared to analyst estimates of $811.05 million. During the same quarter in the previous year, the business earned $2.13 EPS. Allison Transmission's quarterly revenue was down .2% compared to the same quarter last year. Allison Transmission updated its FY 2025 guidance to EPS.

Allison Transmission Price Performance

Allison Transmission stock traded up $1.58 during trading hours on Wednesday, hitting $88.00. 601,780 shares of the stock were exchanged, compared to its average volume of 795,852. The business's 50-day moving average is $94.38 and its two-hundred day moving average is $98.35. Allison Transmission has a 12 month low of $80.39 and a 12 month high of $122.53. The stock has a market capitalization of $7.41 billion, a P/E ratio of 10.00 and a beta of 0.97. The company has a debt-to-equity ratio of 1.44, a quick ratio of 2.37 and a current ratio of 3.05.

Insiders Place Their Bets

In related news, VP Ryan A. Milburn sold 3,412 shares of the stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total value of $359,078.88. Following the transaction, the vice president directly owned 11,924 shares in the company, valued at $1,254,881.76. This represents a 22.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Allison Transmission

An institutional investor recently raised its position in Allison Transmission stock. Jane Street Group LLC grew its position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 341.3% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 288,674 shares of the auto parts company's stock after purchasing an additional 223,253 shares during the period. Jane Street Group LLC owned about 0.34% of Allison Transmission worth $27,617,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 96.90% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on ALSN shares. Robert W. Baird cut their target price on shares of Allison Transmission from $123.00 to $100.00 and set a "neutral" rating for the company in a research report on Tuesday, April 15th. Citigroup cut their target price on shares of Allison Transmission from $105.00 to $100.00 and set a "neutral" rating for the company in a research report on Tuesday, June 24th. Wall Street Zen lowered shares of Allison Transmission from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. Raymond James Financial cut their price objective on shares of Allison Transmission from $110.00 to $105.00 and set an "outperform" rating for the company in a research report on Monday, July 21st. Finally, Bank of America upped their price objective on shares of Allison Transmission from $74.00 to $79.00 and gave the company an "underperform" rating in a research report on Monday, June 16th. Two analysts have rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the company. Based on data from MarketBeat.com, Allison Transmission has a consensus rating of "Hold" and an average target price of $98.38.

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.