Allison Transmission Holdings, Inc. (NYSE:ALSN) Stock Has Average Target Price of $131.57

Key Points

• Analyst sentiment is moderately positive: Nine firms rate Allison Transmission a “Moderate Buy,” with an average 12-month price target of $131.57. Recent ratings included upgrades from Zacks Research and Citigroup, while Wells Fargo and JPMorgan lowered their targets.
• Quarterly results exceeded expectations: Allison reported $2.73 in EPS versus the $2.48 consensus estimate and revenue of $1.57 billion, up 92.4% year over year. Analysts expect full-year EPS of approximately $10.25.
• Shares traded below analyst targets and recent averages: ALSN opened at $106.53, compared with 50- and 200-day moving averages near $120. The company also pays a quarterly dividend of $0.29, representing a 1.1% annualized yield.

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) have been given an average rating of "Moderate Buy" by the nine ratings firms that are presently covering the firm, Marketbeat reports. Three research analysts have rated the stock with a hold rating, four have given a buy rating and two have given a strong buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $131.57.

A number of analysts have recently weighed in on the company. Zacks Research raised Allison Transmission from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 5th. Wells Fargo & Company lowered their target price on Allison Transmission from $137.00 to $120.00 and set an "equal weight" rating on the stock in a research note on Thursday, October 8th. JPMorgan Chase & Co. dropped their price target on shares of Allison Transmission from $145.00 to $142.00 and set a "neutral" rating on the stock in a research report on Thursday, October 8th. Weiss Ratings upgraded Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Finally, Citigroup raised Allison Transmission from a "neutral" rating to a "buy" rating and set a $135.00 target price for the company in a report on Monday, October 12th.

Insider Buying and Selling at Allison Transmission

In related news, insider Eric C. Scroggins sold 1,050 shares of the firm's stock in a transaction dated 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 transaction, the insider directly owned 16,604 shares in the company, 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 SEC, which is available through this link. Also, CEO David S. Graziosi sold 26,708 shares of the firm's stock in a transaction that occurred 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 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 position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Arizona State Retirement System lifted its position in shares of Allison Transmission by 0.3% during the 2nd quarter. Arizona State Retirement System now owns 22,938 shares of the auto parts company's stock valued at $2,586,000 after acquiring an additional 78 shares during the period. Gamco Investors INC. ET AL grew its holdings in shares of Allison Transmission by 1.6% during the first quarter. Gamco Investors INC. ET AL now owns 6,473 shares of the auto parts company's stock worth $758,000 after buying an additional 100 shares in the last quarter. Mather Group LLC. grew its stake in Allison Transmission by 68.2% in the 3rd quarter. Mather Group LLC. now owns 291 shares of the auto parts company's stock worth $33,000 after acquiring an additional 118 shares during the period. HighTower Advisors LLC grew its position in shares of Allison Transmission by 6.0% in the second quarter. HighTower Advisors LLC now owns 2,698 shares of the auto parts company's stock valued at $304,000 after purchasing an additional 153 shares during the period. Finally, Applied Finance Capital Management LLC increased its stake in Allison Transmission by 8.1% in the first quarter. Applied Finance Capital Management LLC now owns 2,436 shares of the auto parts company's stock valued at $285,000 after purchasing an additional 182 shares during the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

Allison Transmission Stock Performance

Shares of ALSN stock opened at $106.53 on Friday. The firm has a market cap of $8.80 billion, a price-to-earnings ratio of 16.94, a PEG ratio of 0.58 and a beta of 0.98. The company has a quick ratio of 1.17, a current ratio of 1.81 and a debt-to-equity ratio of 2.07. Allison Transmission has a 52-week low of $76.01 and a 52-week high of $137.62. The company's 50 day moving average is $119.71 and its 200 day moving average is $119.81.

Allison Transmission (NYSE:ALSN - Get Free Report) last issued its quarterly earnings data 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 return on equity of 38.18% and a net margin of 12.02%. The firm had revenue of $1.57 billion during the quarter, compared to analysts' expectations of $1.50 billion. During the same period in the prior year, the business posted $2.29 EPS. The firm's quarterly revenue was up 92.4% on a year-over-year basis. On average, sell-side analysts anticipate that Allison Transmission will post 10.25 EPS for the current fiscal year.

Allison Transmission Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, August 21st were issued a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, August 21st. Allison Transmission's payout ratio is presently 18.44%.

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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