Allison Transmission (NYSE:ALSN) Stock Moved Up to "Strong-Buy" by Zacks Research

Key Points

• Zacks Research upgraded Allison Transmission to “strong buy” from “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $133.
• Allison reported quarterly EPS of $2.73, beating estimates of $2.48, while revenue reached $1.57 billion and rose 92.4% year over year.
• The stock opened at $114.70, down 0.9%; institutional investors own 96.9% of shares, while company insiders recently sold shares, including a $3.55 million sale by the CEO.

Allison Transmission (NYSE:ALSN - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Monday, Zacks reports.

Other research analysts have also recently issued reports about the stock. Freedom Broker initiated coverage on shares of Allison Transmission in a research report on Friday, October 2nd. They set a "buy" rating and a $144.00 price target for the company. Weiss Ratings upgraded Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Morgan Stanley raised their price objective on Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a research report on Friday, July 17th. JPMorgan Chase & Co. upped their target price on shares of Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Finally, Citigroup dropped their price objective on Allison Transmission from $135.00 to $125.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Allison Transmission has a consensus rating of "Moderate Buy" and a consensus target price of $133.00.

Allison Transmission Trading Down 0.9%

NYSE ALSN opened at $114.70 on Monday. The firm has a market capitalization of $9.47 billion, a PE ratio of 18.24, a P/E/G ratio of 0.61 and a beta of 0.98. The stock's 50 day moving average is $122.19 and its 200 day moving average is $120.32. Allison Transmission has a twelve month low of $76.01 and a twelve month 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.

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

Insider Buying and Selling at Allison Transmission

In related news, CEO David S. Graziosi sold 26,708 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $132.97, for a total value 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 approximately $40,534,973.71. This represents a 8.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Eric C. Scroggins sold 1,050 shares of Allison Transmission stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $125.00, for a total transaction of $131,250.00. Following the transaction, the insider directly owned 16,604 shares in the company, valued at $2,075,500. This represents a 5.95% decrease in their position. The SEC filing for this sale provides additional information. 1.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Allison Transmission

Several large investors have recently made changes to their positions in ALSN. Dudley & Shanley Inc. boosted its stake in shares of Allison Transmission by 6.2% in the third quarter. Dudley & Shanley Inc. now owns 175,274 shares of the auto parts company's stock worth $19,852,000 after acquiring an additional 10,237 shares during the period. Miller Global Investments LLC purchased a new position in Allison Transmission in the 3rd quarter worth approximately $79,000. QRG Capital Management Inc. boosted its stake in Allison Transmission by 4.1% in the 2nd quarter. QRG Capital Management Inc. now owns 4,739 shares of the auto parts company's stock worth $534,000 after purchasing an additional 186 shares during the period. MAC Alpha Capital Management LP boosted its stake in Allison Transmission by 59.4% in the 2nd quarter. MAC Alpha Capital Management LP now owns 156,191 shares of the auto parts company's stock worth $17,610,000 after purchasing an additional 58,208 shares during the period. Finally, WINTON GROUP Ltd purchased a new stake in Allison Transmission during the 2nd quarter valued at approximately $654,000. 96.90% of the stock is currently owned by hedge funds and other institutional investors.

Allison Transmission Company Profile

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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