Bank of America Corp DE Buys Shares of 737,180 Allison Transmission Holdings, Inc. $ALSN

Key Points

• Bank of America acquired 737,180 shares of Allison Transmission in the second quarter, worth approximately $83.1 million and representing about 0.89% of the company. Institutional investors and hedge funds collectively own 96.9% of the stock.
• Allison Transmission reported quarterly earnings of $2.73 per share, exceeding estimates of $2.48, while revenue reached $1.57 billion, up 92.4% year over year. The company also maintains a quarterly dividend of $0.29 per share, yielding about 1.0% annually.
• Analysts give Allison Transmission a consensus “Moderate Buy” rating with an average price target of $131.17, although several firms maintain neutral ratings. The CEO and another insider recently sold shares, while the stock was trading at $117.13.

Bank of America Corp DE purchased a new stake in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 737,180 shares of the auto parts company's stock, valued at approximately $83,110,000. Bank of America Corp DE owned about 0.89% of Allison Transmission at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the company. Freestone Grove Partners LP bought a new stake in Allison Transmission during the 2nd quarter worth approximately $30,741,000. Man Group plc acquired a new position in shares of Allison Transmission in the second quarter valued at approximately $5,386,000. Jupiter Topco LLC bought a new stake in shares of Allison Transmission during the second quarter worth $36,097,000. J. Goldman & Co LP bought a new stake in shares of Allison Transmission during the second quarter worth $15,082,000. Finally, Hsbc Holdings PLC bought a new stake in shares of Allison Transmission during the second quarter worth $7,387,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Allison Transmission Stock Performance

Shares of NYSE ALSN opened at $117.13 on Friday. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.81 and a quick ratio of 1.17. The firm has a market cap of $9.67 billion, a price-to-earnings ratio of 18.62, a P/E/G ratio of 0.61 and a beta of 0.98. The stock's fifty day moving average price is $122.71 and its two-hundred day moving average price is $120.51. Allison Transmission Holdings, Inc. has a one year low of $76.01 and a one year high of $137.62.

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 the consensus estimate of $2.48 by $0.25. The business 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%. The business's revenue was up 92.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.29 EPS. On average, equities analysts forecast that Allison Transmission Holdings, Inc. will post 10.27 EPS for the current year.

Allison Transmission Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, August 21st were paid a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Friday, August 21st. Allison Transmission's dividend payout ratio is presently 18.44%.

Insider Transactions at Allison Transmission

In other news, CEO David S. Graziosi sold 26,708 shares of the company'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 sale, the chief executive officer owned 304,843 shares of the company's stock, valued at approximately $40,534,973.71. This represents a 8.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Eric C. Scroggins sold 1,050 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total transaction of $131,250.00. Following the sale, the insider owned 16,604 shares in the company, valued at $2,075,500. This represents a 5.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.10% of the company's stock.

Analysts Set New Price Targets

ALSN has been the topic of several research reports. Citigroup cut their target price 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. Morgan Stanley lifted their price objective on shares of Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a report on Friday, July 17th. Weiss Ratings raised shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. increased their target price on shares of Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Allison Transmission has an average rating of "Moderate Buy" and a consensus target price of $131.17.

Allison Transmission Company Profile

Allison Transmission, Inc designs and manufactures fully automatic transmissions and propulsion solutions for commercial and military vehicles. Its products are used in applications including trucks, buses, motorhomes, refuse and construction vehicles, and other medium- and heavy-duty vehicles.

The company also develops electrified propulsion technologies, including hybrid-electric systems and electric axles, as well as transmission controls, parts, service, and support offerings. Its products are marketed to original equipment manufacturers, fleet operators, and distributors worldwide, with customers across North America, Europe, Asia, Australia, and other international markets.

Founded in 1915 by James A.

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