Allison Transmission (NYSE:ALSN) Price Target Cut to $142.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan lowered Allison Transmission’s price target from $145 to $142 while maintaining a neutral rating, implying approximately 30.15% upside from the prior close.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and consensus price target of $130.14, despite mixed individual target adjustments.
• Allison shares fell 1.5% to $109.11, while the company recently beat quarterly earnings and revenue expectations, reporting $2.73 in EPS and $1.57 billion in revenue.

Allison Transmission (NYSE:ALSN - Get Free Report) had its price objective lowered by stock analysts at JPMorgan Chase & Co. from $145.00 to $142.00 in a research note issued on Thursday, Benzinga reports. The firm currently has a "neutral" rating on the auto parts company's stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 30.15% from the company's previous close.

Other equities analysts have also recently issued research reports about the stock. Citigroup decreased their price target on shares of Allison Transmission from $135.00 to $125.00 and set a "neutral" rating for the company in a research report on Tuesday, July 14th. Weiss Ratings upgraded Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Freedom Broker started coverage on Allison Transmission in a report on Friday, October 2nd. They issued a "buy" rating and a $144.00 target price for the company. Morgan Stanley upped their price target on Allison Transmission from $126.00 to $130.00 and gave the stock an "equal weight" rating in a report on Friday, July 17th. Finally, Zacks Research raised Allison Transmission from a "hold" rating to a "strong-buy" rating in a research report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Allison Transmission presently has an average rating of "Moderate Buy" and an average price target of $130.14.

Allison Transmission Trading Down 1.5%

NYSE:ALSN traded down $1.65 on Thursday, reaching $109.11. 990,720 shares of the company's stock were exchanged, compared to its average volume of 939,993. The firm has a market capitalization of $9.01 billion, a price-to-earnings ratio of 17.35, a price-to-earnings-growth ratio of 0.60 and a beta of 0.98. Allison Transmission has a 52-week low of $76.01 and a 52-week high of $137.62. The company has a quick ratio of 1.17, a current ratio of 1.81 and a debt-to-equity ratio of 2.07. The business has a fifty day moving average of $122.12 and a 200-day moving average of $120.31.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The auto parts company reported $2.73 earnings per share for the quarter, beating analysts' consensus estimates of $2.48 by $0.25. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The firm had revenue of $1.57 billion during the quarter, compared to analysts' expectations of $1.50 billion. During the same quarter in the previous year, the business posted $2.29 earnings per share. The business's quarterly revenue was up 92.4% compared to the same quarter last year. As a group, analysts expect that Allison Transmission will post 10.27 earnings per share for the current year.

Insider Buying and Selling at Allison Transmission

In other Allison Transmission news, CEO David S. Graziosi sold 26,708 shares of Allison Transmission stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $132.97, for a total transaction of $3,551,362.76. Following the completion of the sale, the chief executive officer directly owned 304,843 shares of the company's stock, valued at $40,534,973.71. The trade was a 8.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Eric C. Scroggins sold 1,050 shares of the company's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total value of $131,250.00. Following the transaction, the insider directly owned 16,604 shares of the company's stock, valued at approximately $2,075,500. This represents a 5.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Allison Transmission

Several hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in Allison Transmission during the 2nd quarter worth approximately $448,232,000. Stockbridge Partners LLC purchased a new stake in Allison Transmission in the 2nd quarter valued at $169,108,000. First Trust Advisors LP boosted its stake in shares of Allison Transmission by 85.2% during the first quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company's stock worth $237,234,000 after buying an additional 932,201 shares during the period. Wasatch Advisors LP boosted its stake in shares of Allison Transmission by 105.7% during the second quarter. Wasatch Advisors LP now owns 1,510,496 shares of the auto parts company's stock worth $170,293,000 after buying an additional 776,169 shares during the period. Finally, Bank of America Corp DE purchased a new position in shares of Allison Transmission during the second quarter worth about $83,110,000. Institutional investors and hedge funds own 96.90% of the company's stock.

About Allison Transmission

Allison Transmission Holdings, Inc designs and manufactures fully automatic transmissions and propulsion solutions for commercial and defense vehicles. Its products are used in a broad range of applications, including refuse and construction trucks, buses, distribution vehicles, emergency vehicles, motorhomes, and off-highway equipment.

The company's portfolio includes conventional automatic transmissions, hybrid-electric propulsion systems, and electric axles and other solutions intended to support vehicle electrification.

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