Citigroup Has Lowered Expectations for Allison Transmission (NYSE:ALSN) Stock Price

Key Points

• Citigroup lowered its price target on Allison Transmission from $135 to $125 while keeping a neutral rating, implying about 8.7% upside from the current share price.
• Analyst sentiment is mixed: recent actions included a Zacks downgrade to hold, a Weiss upgrade to buy, and target increases from JPMorgan, Morgan Stanley, and Wells Fargo. The consensus rating remains Moderate Buy with a consensus price target of $130.50.
• Allison Transmission reported strong quarterly results, with EPS of $2.57 beating estimates and revenue of $1.41 billion topping forecasts, though the stock was down 0.9% in Tuesday trading to $114.99.

Allison Transmission (NYSE:ALSN - Get Free Report) had its price objective reduced by equities researchers at Citigroup from $135.00 to $125.00 in a report issued on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the auto parts company's stock. Citigroup's target price suggests a potential upside of 8.71% from the stock's current price.

A number of other research firms have also recently commented on ALSN. Zacks Research cut Allison Transmission from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. Weiss Ratings upgraded shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 2nd. JPMorgan Chase & Co. raised their price target on shares of Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research report on Monday. Morgan Stanley boosted their price objective on Allison Transmission from $117.00 to $126.00 and gave the company an "equal weight" rating in a report on Wednesday, May 13th. Finally, Wells Fargo & Company upped their target price on Allison Transmission from $127.00 to $137.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Allison Transmission currently has a consensus rating of "Moderate Buy" and a consensus target price of $130.50.

Allison Transmission Stock Down 0.9%

NYSE ALSN traded down $0.99 on Tuesday, hitting $114.99. The stock had a trading volume of 131,404 shares, compared to its average volume of 993,051. The business's fifty day moving average price is $116.98 and its 200 day moving average price is $116.25. The stock has a market cap of $9.54 billion, a price-to-earnings ratio of 17.92, a price-to-earnings-growth ratio of 0.62 and a beta of 0.95. The company has a debt-to-equity ratio of 2.23, a current ratio of 1.85 and a quick ratio of 1.18. Allison Transmission has a 52-week low of $76.01 and a 52-week high of $137.62.

Allison Transmission (NYSE:ALSN - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, beating the consensus estimate of $2.10 by $0.47. Allison Transmission had a return on equity of 37.50% and a net margin of 14.88%.The firm had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the prior year, the business posted $2.23 EPS. The business's revenue for the quarter was up 83.6% compared to the same quarter last year. Equities research analysts anticipate that Allison Transmission will post 9.86 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Scott A. Mell sold 2,270 shares of the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $125.00, for a total transaction of $283,750.00. Following the transaction, the chief financial officer directly owned 1,053 shares in the company, valued at $131,625. The trade was a 68.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Allison Transmission

A number of institutional investors have recently bought and sold shares of the company. Jane Street Group LLC raised its position in shares of Allison Transmission by 341.3% during the 1st quarter. Jane Street Group LLC now owns 288,674 shares of the auto parts company's stock valued at $27,617,000 after buying an additional 223,253 shares during the period. Goldman Sachs Group Inc. increased its stake in Allison Transmission by 5.7% during the first quarter. Goldman Sachs Group Inc. now owns 214,907 shares of the auto parts company's stock worth $20,560,000 after acquiring an additional 11,542 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Allison Transmission by 9.6% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,892 shares of the auto parts company's stock valued at $180,000 after purchasing an additional 165 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Allison Transmission by 441.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company's stock valued at $97,000 after purchasing an additional 830 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in shares of Allison Transmission in the 2nd quarter valued at $6,111,000. 96.90% of the stock is owned by hedge funds and other institutional investors.

About Allison Transmission

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company's products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison's core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.

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