Allison Transmission (NYSE:ALSN) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its price target on Allison Transmission to $140 from $135 and reiterated a Buy rating, implying about 15.7% upside from the price cited in the report.
• Allison beat third-quarter earnings and revenue estimates, reporting EPS of $2.90 and revenue of $1.53 billion; revenue increased 121% year over year. Management also raised its full-year 2026 revenue, earnings, and cash-flow guidance.
• Analyst sentiment is broadly positive, with a MarketBeat average rating of “Moderate Buy” and an average target of $133.57, though margin pressure from the acquired off-highway business remains a concern.

Allison Transmission (NYSE:ALSN - Get Free Report) had its price target boosted by analysts at Citigroup from $135.00 to $140.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage currently has a "buy" rating on the auto parts company's stock. Citigroup's price objective points to a potential upside of 15.66% from the company's current price.

Several other analysts also recently issued reports on ALSN. Morgan Stanley upped their price target on shares of Allison Transmission from $132.00 to $139.00 and gave the company an "equal weight" rating in a report on Wednesday. Freedom Broker began coverage on shares of Allison Transmission in a research note on Friday, October 2nd. They set a "buy" rating and a $144.00 price objective for the company. Wells Fargo & Company cut their price objective on Allison Transmission from $137.00 to $120.00 and set an "equal weight" rating for the company in a research report on Thursday, October 8th. Weiss Ratings raised Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Finally, Zacks Research raised Allison Transmission from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 5th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $133.57.

Allison Transmission Price Performance

Shares of Allison Transmission stock traded up $2.13 on Wednesday, hitting $121.05. The company's stock had a trading volume of 1,427,551 shares, compared to its average volume of 923,030. Allison Transmission has a 52-week low of $78.19 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 firm has a fifty day moving average price of $117.12 and a 200-day moving average price of $118.37. The company has a market capitalization of $10.00 billion, a P/E ratio of 17.39, a price-to-earnings-growth ratio of 0.60 and a beta of 1.06.

Allison Transmission (NYSE:ALSN - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The auto parts company reported $2.90 EPS for the quarter, beating analysts' consensus estimates of $2.32 by $0.58. Allison Transmission had a net margin of 11.12% and a return on equity of 43.23%. The firm had revenue of $1.53 billion for the quarter, compared to analysts' expectations of $1.47 billion. During the same period in the prior year, the company earned $1.63 EPS. The firm's revenue was up 121.4% on a year-over-year basis. On average, equities research analysts expect that Allison Transmission will post 10.25 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Trading of Allison Transmission

Several hedge funds and other institutional investors have recently bought and sold shares of ALSN. BlackRock Inc. purchased a new position in shares of Allison Transmission in the 2nd quarter worth about $448,232,000. First Trust Advisors LP grew its holdings in shares of Allison Transmission by 85.2% during the 1st quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company's stock worth $237,234,000 after purchasing an additional 932,201 shares during the period. Wasatch Advisors LP increased its position in Allison Transmission by 105.7% during the 2nd quarter. Wasatch Advisors LP now owns 1,510,496 shares of the auto parts company's stock worth $170,293,000 after purchasing an additional 776,169 shares in the last quarter. Stockbridge Partners LLC purchased a new position in Allison Transmission in the second quarter valued at approximately $169,108,000. Finally, Bank of America Corp DE raised its holdings in Allison Transmission by 12.3% in the first quarter. Bank of America Corp DE now owns 1,100,162 shares of the auto parts company's stock valued at $128,785,000 after buying an additional 120,335 shares during the period. 96.90% of the stock is owned by hedge funds and other institutional investors.

Allison Transmission News Summary

Here are the key news stories impacting Allison Transmission this week:

• Positive Sentiment: Third-quarter adjusted EPS of $2.90 and revenue of $1.534 billion beat analyst estimates; sales rose 121% year over year, reflecting the addition of the acquired off-highway business as well as growth in Allison’s core transmission unit. Zacks earnings report
• Positive Sentiment: Management raised full-year 2026 revenue guidance to $6.0–$6.1 billion, above the roughly $5.9 billion consensus, and also lifted earnings and cash-flow guidance. Expected synergies of more than $120 million in 2027 add to the potential upside. Guidance update
• Positive Sentiment: Morgan Stanley raised its price target from $132 to $139, implying potential upside, though it kept an “equal weight” rating. Morgan Stanley rating
• Negative Sentiment: One potential concern is pressure on margins: the acquired off-highway business is less profitable, weighing on margins despite strong sales. Analysts’ overall views are mixed. Q3 review

About Allison Transmission

Allison Transmission, Inc designs and manufactures propulsion solutions for commercial, defense and off-highway vehicles. The company is best known for its fully automatic transmissions, which are used in applications including refuse collection, construction, distribution, emergency services, public transportation and mining.

Its product portfolio also includes electric and hybrid-electric propulsion systems, including the eGen Power electric axle and other electrification technologies.

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