Allison Transmission (NYSE:ALSN) Sets New 12-Month High - Here's What Happened

Key Points

• Allison Transmission hit a new 52-week high, trading as high as $140.00 Monday and last at $130.39; the company has a market cap of $10.78 billion and a P/E of 17.8.
• Analysts have a consensus rating of "Hold" with an average price target of $114.13, even though several firms raised targets (Oppenheimer to $135, Wells Fargo to $127), leaving the stock trading well above the consensus target.
• The quarterly dividend was raised to $0.29 from $0.27 (annualized $1.16, yield 0.9%), and institutional ownership is very high at 96.9% with notable recent inflows such as a large stake increase by Jane Street.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report)'s stock price hit a new 52-week high during trading on Monday . The company traded as high as $140.00 and last traded at $130.3890, with a volume of 282 shares changing hands. The stock had previously closed at $131.23.

Analysts Set New Price Targets

A number of research analysts recently weighed in on ALSN shares. Zacks Research cut Allison Transmission from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 24th. Oppenheimer lifted their target price on Allison Transmission from $115.00 to $135.00 and gave the company an "outperform" rating in a report on Tuesday, February 24th. Weiss Ratings cut Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, February 25th. Wells Fargo & Company lifted their target price on Allison Transmission from $98.00 to $127.00 and gave the company an "equal weight" rating in a report on Thursday, February 26th. Finally, Morgan Stanley lifted their target price on Allison Transmission from $109.00 to $117.00 and gave the company 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 given a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $114.13.

Allison Transmission Stock Performance

The stock has a 50 day simple moving average of $121.93 and a 200 day simple moving average of $105.82. The company has a market cap of $10.78 billion, a price-to-earnings ratio of 17.79, a PEG ratio of 0.79 and a beta of 1.01. The company has a quick ratio of 4.17, a current ratio of 4.85 and a debt-to-equity ratio of 1.55.

Allison Transmission Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Monday, March 9th were paid a dividend of $0.29 per share. This is a boost from Allison Transmission's previous quarterly dividend of $0.27. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Monday, March 9th. Allison Transmission's payout ratio is presently 15.83%.

Insider Activity at Allison Transmission

In related news, insider Eric C. Scroggins sold 1,313 shares of the business's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $114.40, for a total value of $150,207.20. Following the transaction, the insider owned 17,654 shares in the company, valued at approximately $2,019,617.60. The trade was a 6.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ALSN. Jane Street Group LLC lifted its stake in shares of Allison Transmission by 341.3% in the first quarter. Jane Street Group LLC now owns 288,674 shares of the auto parts company's stock worth $27,617,000 after acquiring an additional 223,253 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of Allison Transmission by 5.7% in the first quarter. Goldman Sachs Group Inc. now owns 214,907 shares of the auto parts company's stock worth $20,560,000 after acquiring an additional 11,542 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Allison Transmission by 9.6% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,892 shares of the auto parts company's stock worth $180,000 after acquiring an additional 165 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Allison Transmission by 441.5% in the second quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company's stock worth $97,000 after acquiring an additional 830 shares in the last quarter. Finally, Marshall Wace LLP acquired a new position in shares of Allison Transmission in the second quarter worth about $6,111,000. Institutional investors and hedge funds own 96.90% of the company's stock.

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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