Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analyst consensus is “Moderate Buy” among eight analysts, with an average 12-month price target of $131.17. Ratings include five holds, two buys, and one strong buy.
• Allison Transmission reported quarterly earnings of $2.73 per share, beating estimates of $2.48, while revenue reached $1.57 billion—up 92.4% year over year and above expectations.
• The company pays a quarterly dividend of $0.29 per share, equivalent to an annualized $1.16 and a 0.9% yield; institutional investors own approximately 96.9% of outstanding shares.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) has received an average rating of "Moderate Buy" from the eight analysts that are presently covering the company, MarketBeat reports. Five analysts have rated the stock with a hold recommendation, two have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $131.1667.

ALSN has been the topic of several recent analyst reports. Citigroup cut their price objective on Allison Transmission from $135.00 to $125.00 and set a "neutral" rating on the stock in a report on Tuesday, July 14th. JPMorgan Chase & Co. increased their target price on Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Weiss Ratings upgraded shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Finally, Morgan Stanley lifted their price target on shares of Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th.

Allison Transmission Stock Up 1.5%

Shares of NYSE:ALSN opened at $128.56 on Friday. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $137.62. The company has a debt-to-equity ratio of 2.07, a quick ratio of 1.17 and a current ratio of 1.81. The company has a market capitalization of $10.62 billion, a PE ratio of 20.44, a PEG ratio of 0.68 and a beta of 0.98. The company has a 50 day moving average price of $120.57 and a two-hundred day moving average price of $120.12.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 earnings per share for the quarter, topping 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 company had revenue of $1.57 billion for the quarter, compared to analysts' expectations of $1.50 billion. During the same period last year, the firm posted $2.29 earnings per share. The business's quarterly revenue was up 92.4% compared to the same quarter last year. Analysts forecast that Allison Transmission will post 9.94 earnings per share for the current year.

Allison Transmission Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Friday, August 21st were issued a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Friday, August 21st. Allison Transmission's dividend payout ratio (DPR) is presently 18.44%.

Insider Buying and Selling at Allison Transmission

In other news, insider Eric C. Scroggins sold 1,050 shares of the firm'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 transaction of $131,250.00. Following the completion of the transaction, the insider directly owned 16,604 shares of the company's stock, valued at $2,075,500. This trade represents a 5.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David S. Graziosi sold 26,708 shares of the business's stock in a transaction dated 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 sale, the chief executive officer directly owned 304,843 shares in the company, valued at $40,534,973.71. This trade represents a 8.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Allison Transmission

A number of institutional investors and hedge funds have recently modified their holdings of the company. HighTower Advisors LLC raised its stake in 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 period. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Allison Transmission in the second quarter valued at about $1,440,000. California State Teachers Retirement System grew its stake in shares of Allison Transmission by 11,064.0% in the second quarter. California State Teachers Retirement System now owns 10,883,356 shares of the auto parts company's stock valued at $1,226,990,000 after acquiring an additional 10,785,870 shares in the last quarter. HB Wealth Management LLC increased its holdings in shares of Allison Transmission by 9.8% during the second quarter. HB Wealth Management LLC now owns 6,748 shares of the auto parts company's stock worth $761,000 after purchasing an additional 602 shares during the period. Finally, AlphaGrep UK Ltd bought a new position in Allison Transmission during the 2nd quarter worth $290,000. 96.90% of the stock is owned by institutional investors.

Allison Transmission Company Profile

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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