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

Key Points

• Freedom Broker raised its Allison Transmission price target to $147 from $144 and reiterated a Buy rating, implying about 26% upside from the cited share price of $116.74.
• Analyst sentiment is generally positive: the consensus rating is Moderate Buy, with an average price target of $135.62. Recent ratings were mixed, including Buy upgrades from Citigroup and Zacks Research and an Equal Weight rating from Wells Fargo.
• Allison beat quarterly expectations, reporting EPS of $2.90 versus $2.32 expected and revenue of $1.53 billion versus $1.47 billion expected; revenue grew 121.4% year over year.

Allison Transmission (NYSE:ALSN - Get Free Report) had its price objective boosted by investment analysts at Freedom Broker from $144.00 to $147.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has a "buy" rating on the auto parts company's stock. Freedom Broker's price objective would suggest a potential upside of 25.92% from the company's current price.

Several other analysts have also recently weighed in on ALSN. Citigroup boosted their price target on Allison Transmission from $135.00 to $140.00 and gave the stock a "buy" rating in a report on Wednesday. Wells Fargo & Company dropped their price objective on shares of Allison Transmission from $137.00 to $120.00 and set an "equal weight" rating for the company in a report on Thursday, October 8th. Weiss Ratings upgraded shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Zacks Research raised shares of Allison Transmission from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. Finally, 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 research report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $135.62.

Allison Transmission Price Performance

ALSN stock traded up $0.29 during trading on Friday, reaching $116.74. 1,058,862 shares of the company were exchanged, compared to its average volume of 923,925. The company has a market capitalization of $9.64 billion, a price-to-earnings ratio of 16.77, a P/E/G ratio of 0.60 and a beta of 1.06. The company has a debt-to-equity ratio of 1.92, a current ratio of 1.77 and a quick ratio of 1.17. The company has a 50-day moving average of $116.66 and a two-hundred day moving average of $118.44. Allison Transmission has a twelve month low of $78.77 and a twelve month high of $137.62.

Allison Transmission (NYSE:ALSN - Get Free Report) last issued its earnings results on Monday, November 2nd. The auto parts company reported $2.90 earnings per share for the quarter, beating analysts' consensus estimates of $2.32 by $0.58. The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.47 billion. Allison Transmission had a net margin of 11.12% and a return on equity of 42.33%. The company's quarterly revenue was up 121.4% on a year-over-year basis. During the same quarter last year, the business posted $1.63 earnings per share. As a group, equities analysts predict that Allison Transmission will post 10.28 earnings per share for the current fiscal year.

Insider Activity at Allison Transmission

In other news, insider Eric Scroggins sold 1,050 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $125.00, for a total value of $131,250.00. Following the transaction, the insider owned 16,604 shares in the company, valued at approximately $2,075,500. The trade was a 5.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO David Graziosi sold 26,708 shares of the company's stock in a transaction on 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 completion of the sale, the chief executive officer directly owned 304,843 shares in the company, valued at approximately $40,534,973.71. This represents a 8.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.10% of the stock is currently owned by company insiders.

Institutional Trading of Allison Transmission

A number of large investors have recently bought and sold shares of ALSN. Millstone Evans Group LLC purchased a new stake in shares of Allison Transmission during the 1st quarter valued at $26,000. Cedar Mountain Advisors LLC bought a new position in Allison Transmission during the first quarter valued at about $27,000. Cassaday & Co Wealth Management LLC bought a new position in Allison Transmission during the first quarter valued at about $28,000. Mather Group LLC. increased its holdings in Allison Transmission by 68.2% during the third quarter. Mather Group LLC. now owns 291 shares of the auto parts company's stock worth $33,000 after buying an additional 118 shares during the last quarter. Finally, Gen Wealth Partners Inc purchased a new stake in Allison Transmission during the third quarter worth about $33,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

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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