Freedom Broker Begins Coverage on Allison Transmission (NYSE:ALSN)

Key Points

• Freedom Broker initiated coverage of Allison Transmission with a “buy” rating and a $144 price target, implying 21.89% upside from the prior close.
• Analyst sentiment is broadly positive, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $133, though several firms maintain “Hold” or “Neutral” ratings.
• Allison reported quarterly EPS of $2.73 versus the $2.48 consensus estimate, while revenue rose 92.4% year over year to $1.57 billion; institutional investors own 96.9% of the company’s shares.

Freedom Broker started coverage on shares of Allison Transmission (NYSE:ALSN - Get Free Report) in a research note issued on Friday, Benzinga reports. The brokerage set a "buy" rating and a $144.00 price target on the auto parts company's stock. Freedom Broker's target price indicates a potential upside of 21.89% from the stock's previous close.

Several other equities research analysts have also recently commented on the company. Citigroup lowered their target price on Allison Transmission from $135.00 to $125.00 and set a "neutral" rating for the company in a research note on Tuesday, July 14th. Morgan Stanley upped their price target on Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th. Weiss Ratings upgraded Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. lifted their price objective on Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Allison Transmission currently has an average rating of "Moderate Buy" and an average target price of $133.00.

Allison Transmission Price Performance

Shares of ALSN stock traded up $1.86 during trading hours on Friday, reaching $118.14. 103,599 shares of the company were exchanged, compared to its average volume of 939,678. Allison Transmission has a fifty-two week low of $76.01 and a fifty-two week high of $137.62. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.81 and a quick ratio of 1.17. The stock's fifty day moving average is $122.52 and its two-hundred day moving average is $120.27. The company has a market cap of $9.76 billion, a price-to-earnings ratio of 18.81, a P/E/G ratio of 0.59 and a beta of 0.99.

Allison Transmission (NYSE:ALSN - Get Free Report) last issued its quarterly earnings results 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 business had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same quarter last year, the business posted $2.29 earnings per share. Allison Transmission's revenue for the quarter was up 92.4% compared to the same quarter last year. Sell-side analysts forecast that Allison Transmission will post 10.27 earnings per share for the current fiscal year.

Insider Activity at Allison Transmission

In related news, insider Eric Scroggins sold 1,050 shares of the business's stock in a transaction 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 sale, the insider directly owned 16,604 shares of the company's stock, valued at approximately $2,075,500. The trade was a 5.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO David Graziosi sold 26,708 shares of the company's stock in a transaction on 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 transaction, the chief executive officer directly owned 304,843 shares of the company's stock, valued at approximately $40,534,973.71. The trade was a 8.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Allison Transmission

Hedge funds and other institutional investors have recently bought and sold shares of the company. Arizona State Retirement System raised its stake in Allison Transmission by 0.3% during the second quarter. Arizona State Retirement System now owns 22,938 shares of the auto parts company's stock valued at $2,586,000 after buying an additional 78 shares in the last quarter. Gamco Investors INC. ET AL grew its position in shares of Allison Transmission by 1.6% in the 1st quarter. Gamco Investors INC. ET AL now owns 6,473 shares of the auto parts company's stock worth $758,000 after acquiring an additional 100 shares in the last quarter. Villanova Investment Management Co LLC increased its holdings in shares of Allison Transmission by 0.4% in the 4th quarter. Villanova Investment Management Co LLC now owns 26,089 shares of the auto parts company's stock valued at $2,554,000 after acquiring an additional 106 shares during the last quarter. HighTower Advisors LLC increased its holdings in shares of Allison Transmission by 6.0% in the 2nd quarter. HighTower Advisors LLC now owns 2,698 shares of the auto parts company's stock valued at $304,000 after acquiring an additional 153 shares during the last quarter. Finally, Andina Capital Management LLC raised its position in shares of Allison Transmission by 3.7% during the 4th quarter. Andina Capital Management LLC now owns 4,636 shares of the auto parts company's stock valued at $454,000 after acquiring an additional 165 shares in the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

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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