Charles Schwab Investment Management Inc. Lowers Stock Position in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Charles Schwab Investment Management Inc. reduced its stake in Allison Transmission Holdings by 5.2%, owning about 1.00% of the company, valued at $80.91 million after selling 46,706 shares.
• Allison Transmission reported $2.29 earnings per share for the last quarter, exceeding estimates, with revenue slightly down year-over-year, totaling $814 million.
• The company announced a quarterly dividend of $0.27, set to be paid on August 29th, with a current yield of 1.2%.

Charles Schwab Investment Management Inc. cut its position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 5.2% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 845,715 shares of the auto parts company's stock after selling 46,706 shares during the quarter. Charles Schwab Investment Management Inc. owned approximately 1.00% of Allison Transmission worth $80,910,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Vident Advisory LLC grew its stake in Allison Transmission by 1.0% in the 4th quarter. Vident Advisory LLC now owns 10,182 shares of the auto parts company's stock valued at $1,100,000 after buying an additional 102 shares during the last quarter. KBC Group NV grew its stake in Allison Transmission by 3.7% in the 1st quarter. KBC Group NV now owns 3,596 shares of the auto parts company's stock valued at $344,000 after buying an additional 127 shares during the last quarter. GAMMA Investing LLC grew its stake in Allison Transmission by 9.8% in the 1st quarter. GAMMA Investing LLC now owns 1,550 shares of the auto parts company's stock valued at $148,000 after buying an additional 138 shares during the last quarter. Delta Investment Management LLC grew its position in Allison Transmission by 3.4% in the 4th quarter. Delta Investment Management LLC now owns 4,540 shares of the auto parts company's stock worth $491,000 after purchasing an additional 151 shares during the last quarter. Finally, Private Trust Co. NA grew its position in Allison Transmission by 32.8% in the 1st quarter. Private Trust Co. NA now owns 636 shares of the auto parts company's stock worth $61,000 after purchasing an additional 157 shares during the last quarter. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have commented on ALSN. The Goldman Sachs Group boosted their price target on shares of Allison Transmission from $80.00 to $90.00 and gave the company a "sell" rating in a research report on Tuesday, May 27th. Citigroup reduced their price target on shares of Allison Transmission from $105.00 to $100.00 and set a "neutral" rating on the stock in a research report on Tuesday, June 24th. Bank of America boosted their price target on shares of Allison Transmission from $74.00 to $79.00 and gave the company an "underperform" rating in a research report on Monday, June 16th. Wall Street Zen lowered shares of Allison Transmission from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. Finally, Morgan Stanley boosted their price target on shares of Allison Transmission from $94.00 to $100.00 and gave the company an "equal weight" rating in a research report on Tuesday, May 6th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $98.38.

Insiders Place Their Bets

In other news, VP Ryan A. Milburn sold 3,412 shares of the company's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total value of $359,078.88. Following the sale, the vice president directly owned 11,924 shares of the company's stock, valued at approximately $1,254,881.76. This represents a 22.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 1.20% of the stock is owned by insiders.

Allison Transmission Stock Performance

Shares of NYSE ALSN traded up $1.11 during mid-day trading on Monday, reaching $88.11. 151,416 shares of the company were exchanged, compared to its average volume of 803,606. The company's 50-day simple moving average is $92.04 and its 200-day simple moving average is $96.54. The company has a quick ratio of 2.64, a current ratio of 3.36 and a debt-to-equity ratio of 1.37. The stock has a market capitalization of $7.37 billion, a P/E ratio of 10.01 and a beta of 0.97. Allison Transmission Holdings, Inc. has a twelve month low of $80.39 and a twelve month high of $122.53.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The auto parts company reported $2.29 EPS for the quarter, topping analysts' consensus estimates of $2.20 by $0.09. Allison Transmission had a net margin of 23.81% and a return on equity of 45.56%. The business had revenue of $814.00 million for the quarter, compared to analyst estimates of $811.05 million. During the same period last year, the firm earned $2.13 earnings per share. Allison Transmission's revenue for the quarter was down .2% compared to the same quarter last year. As a group, research analysts predict that Allison Transmission Holdings, Inc. will post 9.06 earnings per share for the current year.

Allison Transmission Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Wednesday, August 20th will be issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Wednesday, August 20th. Allison Transmission's payout ratio is presently 12.27%.

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.