Allison Transmission Holdings, Inc. $ALSN Shares Bought by Wedge Capital Management L L P NC

Key Points

• Wedge Capital Management increased its Allison Transmission position by 7.9% in the second quarter, holding 146,537 shares worth approximately $16.5 million. Institutional investors collectively own 96.9% of ALSN.
• Analyst sentiment remains cautious: the stock has an average rating of “Hold” and an average price target of $131.17, despite several analysts raising their targets.
• Allison reported stronger-than-expected quarterly results, with EPS of $2.73 versus a $2.48 estimate and revenue up 92.4% year over year to $1.57 billion. The company also declared a $0.29 quarterly dividend, yielding about 0.9% annually.

Wedge Capital Management L L P NC grew its position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 7.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 146,537 shares of the auto parts company's stock after buying an additional 10,725 shares during the quarter. Wedge Capital Management L L P NC owned 0.18% of Allison Transmission worth $16,521,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in ALSN. Millstone Evans Group LLC acquired a new stake in Allison Transmission in the 1st quarter valued at about $26,000. Cedar Mountain Advisors LLC acquired a new position in Allison Transmission during the first quarter worth about $27,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Allison Transmission in the first quarter valued at about $28,000. Larson Financial Group LLC lifted its holdings in shares of Allison Transmission by 536.7% in the fourth quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 263 shares in the last quarter. Finally, Transamerica Financial Advisors LLC grew its position in shares of Allison Transmission by 2,112.5% in the fourth quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company's stock valued at $35,000 after purchasing an additional 338 shares during the last quarter. 96.90% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

ALSN has been the subject of several research reports. Wells Fargo & Company lifted their price objective on Allison Transmission from $127.00 to $137.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Weiss Ratings downgraded Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, July 16th. Morgan Stanley boosted 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. JPMorgan Chase & Co. upped their price objective on Allison Transmission from $140.00 to $145.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. Finally, Citigroup decreased their price objective on Allison Transmission from $135.00 to $125.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $131.17.

Allison Transmission Stock Performance

Shares of ALSN opened at $124.91 on Wednesday. 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 $10.31 billion, a price-to-earnings ratio of 19.86, a PEG ratio of 0.68 and a beta of 0.95. The company's 50 day simple moving average is $117.54 and its 200 day simple moving average is $118.39. Allison Transmission Holdings, Inc. has a 1 year low of $76.01 and a 1 year high of $137.62.

Allison Transmission (NYSE:ALSN - Get Free Report) last released 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. The firm had revenue of $1.57 billion during the quarter, compared to analysts' expectations of $1.50 billion. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. Allison Transmission's revenue for the quarter was up 92.4% on a year-over-year basis. During the same period in the previous year, the company earned $2.29 EPS. On average, sell-side analysts predict that Allison Transmission Holdings, Inc. will post 9.76 EPS for the current year.

Allison Transmission Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, August 21st will be paid a $0.29 dividend. The ex-dividend date is Friday, August 21st. This represents a $1.16 annualized dividend and a dividend yield of 0.9%. Allison Transmission's dividend payout ratio is 18.44%.

Allison Transmission 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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