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

Key Points

• Analysts maintain a “Moderate Buy” consensus on Allison Transmission, with five hold ratings, two buy ratings and one strong-buy rating. The average 12-month price target is $131.17.
• Allison reported quarterly adjusted EPS of $2.73, exceeding the $2.48 consensus estimate, while revenue rose 92.4% year over year to $1.57 billion.
• CEO David Graziosi sold 26,708 shares for approximately $3.55 million, while institutional investors own 96.9% of the company. Allison also pays a quarterly dividend of $0.29 per share, yielding about 1.0%.

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the eight ratings firms that are covering the stock, Marketbeat.com 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 twelve-month price objective among brokers that have issued a report on the stock in the last year is $131.17.

A number of research firms have recently commented on ALSN. Weiss Ratings upgraded Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Citigroup lowered their target price 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. lifted their price target on Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research report on Monday, July 13th. Finally, Morgan Stanley upped their price target on Allison Transmission from $126.00 to $130.00 and gave the stock an "equal weight" rating in a report on Friday, July 17th.

Insider Buying and Selling at Allison Transmission

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

Institutional Investors Weigh In On Allison Transmission

Institutional investors have recently added to or reduced their stakes in the company. Arizona State Retirement System boosted its stake in shares of 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 purchasing an additional 78 shares in the last quarter. Gamco Investors INC. ET AL increased its stake in shares of Allison Transmission by 1.6% in the first quarter. Gamco Investors INC. ET AL now owns 6,473 shares of the auto parts company's stock valued at $758,000 after buying an additional 100 shares during the period. EverSource Wealth Advisors LLC raised its holdings in Allison Transmission by 16.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 732 shares of the auto parts company's stock valued at $72,000 after buying an additional 105 shares during the last quarter. Villanova Investment Management Co LLC raised its holdings in 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 buying an additional 106 shares during the last quarter. Finally, HighTower Advisors LLC raised its holdings 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 buying an additional 153 shares during the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

Allison Transmission Stock Performance

NYSE:ALSN opened at $113.83 on Tuesday. Allison Transmission has a 1 year low of $76.01 and a 1 year high of $137.62. The firm's fifty day simple moving average is $122.76 and its 200 day simple moving average is $120.24. The company has a current ratio of 1.81, a quick ratio of 1.17 and a debt-to-equity ratio of 2.07. The firm has a market capitalization of $9.40 billion, a PE ratio of 18.10, a PEG ratio of 0.60 and a beta of 0.98.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its earnings results on Monday, August 3rd. The auto parts company reported $2.73 EPS for the quarter, topping the consensus estimate of $2.48 by $0.25. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The firm had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter last year, the firm posted $2.29 EPS. The business's quarterly revenue was up 92.4% on a year-over-year basis. On average, sell-side analysts anticipate that Allison Transmission will post 10.27 EPS for the current year.

Allison Transmission Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Friday, August 21st were given a dividend of $0.29 per share. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.16 dividend on an annualized basis and a yield of 1.0%. Allison Transmission's payout ratio is 18.44%.

Allison Transmission Company Profile

Allison Transmission, Inc designs and manufactures fully automatic transmissions and propulsion solutions for commercial and military vehicles. Its products are used in applications including trucks, buses, motorhomes, refuse and construction vehicles, and other medium- and heavy-duty vehicles.

The company also develops electrified propulsion technologies, including hybrid-electric systems and electric axles, as well as transmission controls, parts, service, and support offerings. Its products are marketed to original equipment manufacturers, fleet operators, and distributors worldwide, with customers across North America, Europe, Asia, Australia, and other international markets.

Founded in 1915 by James A.

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