Allison Transmission Holdings, Inc. $ALSN Stock: Inspire Investing LLC Raises Stake

Key Points

• Inspire Investing increased its Allison Transmission stake by 187.9% in the third quarter, bringing its holdings to 40,462 shares valued at approximately $4.6 million. Institutional investors collectively own 96.9% of the company.
• Analyst sentiment is favorable overall, with a consensus “Moderate Buy” rating and an average price target of $131.57, despite some target-price cuts and neutral ratings.
• Allison Transmission exceeded quarterly expectations, reporting $2.73 in EPS versus the $2.48 consensus and $1.57 billion in revenue, up 92.4% year over year. The company also pays a quarterly dividend of $0.29 per share, yielding about 1.1%.

Inspire Investing LLC boosted its position in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 187.9% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 40,462 shares of the auto parts company's stock after buying an additional 26,408 shares during the quarter. Inspire Investing LLC's holdings in Allison Transmission were worth $4,583,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Allison Transmission during the second quarter valued at approximately $448,232,000. Stockbridge Partners LLC bought a new position in shares of Allison Transmission during the second quarter valued at approximately $169,108,000. First Trust Advisors LP grew its stake in shares of Allison Transmission by 85.2% during the first quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company's stock valued at $237,234,000 after buying an additional 932,201 shares during the last quarter. Wasatch Advisors LP raised its holdings in shares of Allison Transmission by 105.7% in the second quarter. Wasatch Advisors LP now owns 1,510,496 shares of the auto parts company's stock worth $170,293,000 after buying an additional 776,169 shares during the period. Finally, Bank of America Corp DE purchased a new stake in shares of Allison Transmission in the second quarter worth approximately $83,110,000. Institutional investors own 96.90% of the company's stock.

Insider Activity

In related news, insider Eric C. Scroggins sold 1,050 shares of Allison Transmission 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 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO David S. Graziosi sold 26,708 shares of the business's stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer directly owned 304,843 shares of the company's stock, valued at $40,534,973.71. This trade represents a 8.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.10% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on ALSN shares. Citigroup raised Allison Transmission from a "neutral" rating to a "buy" rating and set a $135.00 price objective on the stock in a research report on Monday, October 12th. Freedom Broker started coverage on Allison Transmission in a research report on Friday, October 2nd. They set a "buy" rating and a $144.00 target price for the company. Wells Fargo & Company lowered their target price on shares of Allison Transmission from $137.00 to $120.00 and set an "equal weight" rating for the company in a research note on Thursday, October 8th. Zacks Research upgraded shares of Allison Transmission from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. Finally, JPMorgan Chase & Co. cut their price target on shares of Allison Transmission from $145.00 to $142.00 and set a "neutral" rating on the stock in a report on Thursday, October 8th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $131.57.

Allison Transmission Price Performance

Shares of ALSN stock opened at $106.53 on Friday. Allison Transmission Holdings, Inc. has a twelve month low of $76.01 and a twelve month high of $137.62. 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 stock has a fifty day simple moving average of $119.71 and a two-hundred day simple moving average of $119.81. The stock has a market capitalization of $8.80 billion, a price-to-earnings ratio of 16.94, a P/E/G ratio of 0.58 and a beta of 0.98.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $1.50 billion. During the same quarter last year, the firm posted $2.29 earnings per share. The business's revenue for the quarter was up 92.4% on a year-over-year basis. On average, analysts predict that Allison Transmission Holdings, Inc. will post 10.25 EPS for the current fiscal year.

Allison Transmission Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 31st. Shareholders 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 1.1%. Allison Transmission's dividend payout ratio (DPR) is 18.44%.

Allison Transmission Company Profile

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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