Dark Forest Capital Management LP Raises Holdings in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Dark Forest Capital Management LP increased its holdings in Allison Transmission by 286.4%, owning approximately 90,372 shares valued at $8.6 million as of the latest SEC filing.
• Multiple institutional investors, including Caisse DE Depot ET Placement DU Quebec and Jane Street Group LLC, significantly boosted their stakes, indicating strong institutional interest in Allison Transmission.
• Despite positive earnings results exceeding analysts' expectations, Allison Transmission received mixed ratings from research firms, with current consensus rating at "Reduce" and a target price of $98.38.

Dark Forest Capital Management LP increased its position in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 286.4% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 90,372 shares of the auto parts company's stock after purchasing an additional 66,985 shares during the quarter. Allison Transmission makes up approximately 0.4% of Dark Forest Capital Management LP's investment portfolio, making the stock its 14th largest position. Dark Forest Capital Management LP owned about 0.11% of Allison Transmission worth $8,646,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its stake in Allison Transmission by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 1,867,799 shares of the auto parts company's stock worth $178,686,000 after buying an additional 10,208 shares during the last quarter. Invesco Ltd. boosted its stake in Allison Transmission by 6.8% during the first quarter. Invesco Ltd. now owns 1,262,619 shares of the auto parts company's stock worth $120,795,000 after buying an additional 80,653 shares during the last quarter. Federated Hermes Inc. boosted its stake in Allison Transmission by 19.0% during the first quarter. Federated Hermes Inc. now owns 1,138,259 shares of the auto parts company's stock worth $108,897,000 after buying an additional 181,568 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec boosted its stake in Allison Transmission by 109.1% during the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 929,434 shares of the auto parts company's stock worth $88,919,000 after buying an additional 484,916 shares during the last quarter. Finally, Jennison Associates LLC boosted its stake in Allison Transmission by 26.4% during the first quarter. Jennison Associates LLC now owns 640,217 shares of the auto parts company's stock worth $61,250,000 after buying an additional 133,635 shares during the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

Allison Transmission Trading Up 0.8%

Shares of ALSN stock traded up $0.75 on Friday, hitting $89.98. The stock had a trading volume of 800,045 shares, compared to its average volume of 897,915. The company has a debt-to-equity ratio of 1.37, a current ratio of 3.36 and a quick ratio of 2.64. The firm has a market capitalization of $7.52 billion, a P/E ratio of 10.23 and a beta of 1.02. Allison Transmission Holdings, Inc. has a 1 year low of $80.39 and a 1 year high of $122.53. The company's 50 day moving average price is $89.74 and its 200-day moving average price is $94.44.

Allison Transmission (NYSE:ALSN - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The auto parts company reported $2.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.20 by $0.09. The firm had revenue of $814.00 million for the quarter, compared to the consensus estimate of $811.05 million. Allison Transmission had a return on equity of 45.56% and a net margin of 23.81%.The company's quarterly revenue was down .2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.13 EPS. Allison Transmission has set its FY 2025 guidance at EPS. Analysts anticipate that Allison Transmission Holdings, Inc. will post 9.06 earnings per share for the current year.

Allison Transmission Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Wednesday, August 20th were issued a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Wednesday, August 20th. Allison Transmission's payout ratio is currently 12.27%.

Analysts Set New Price Targets

A number of research firms have weighed in on ALSN. Raymond James Financial lowered their price objective on Allison Transmission from $110.00 to $105.00 and set an "outperform" rating on the stock in a research note on Monday, July 21st. Wall Street Zen lowered Allison Transmission from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Zacks Research lowered Allison Transmission from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 19th. Citigroup decreased their price target on Allison Transmission from $105.00 to $100.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 24th. Finally, The Goldman Sachs Group upped their price target on Allison Transmission from $80.00 to $90.00 and gave the company a "sell" rating in a research note on Tuesday, May 27th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Allison Transmission presently has an average rating of "Reduce" and a consensus target price of $98.38.

About Allison Transmission

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.