Bank of Nova Scotia Makes New $6.72 Million Investment in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Bank of Nova Scotia purchased 59,581 Allison Transmission shares worth approximately $6.72 million, giving it a 0.07% stake. Institutional investors collectively own 96.9% of the company.
• Allison reported quarterly earnings of $2.73 per share, beating estimates of $2.48, while revenue rose 92.4% year over year to $1.57 billion. The company also declared a quarterly dividend of $0.29 per share.
• ALSN shares opened at $131.74, near the consensus analyst price target of $131.17; analysts collectively maintain a “Moderate Buy” rating, though recent insider transactions included sizable stock sales by the CEO and an insider.

Bank of Nova Scotia purchased a new stake in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 59,581 shares of the auto parts company's stock, valued at approximately $6,717,000. Bank of Nova Scotia owned about 0.07% of Allison Transmission as of its most recent filing with the SEC.

Several other large investors have also added to or reduced their stakes in ALSN. BlackRock Inc. purchased a new position in Allison Transmission during the 2nd quarter worth approximately $448,232,000. Fuller & Thaler Asset Management Inc. lifted its stake in Allison Transmission by 16.4% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 3,313,661 shares of the auto parts company's stock valued at $324,407,000 after acquiring an additional 466,366 shares during the period. Boston Partners boosted its holdings in shares of Allison Transmission by 13.6% in the 4th quarter. Boston Partners now owns 2,316,240 shares of the auto parts company's stock valued at $226,879,000 after acquiring an additional 277,811 shares during the last quarter. Bank of Montreal Can boosted its holdings in shares of Allison Transmission by 4,032.3% in the 4th quarter. Bank of Montreal Can now owns 2,151,871 shares of the auto parts company's stock valued at $210,668,000 after acquiring an additional 2,099,797 shares during the last quarter. Finally, First Trust Advisors LP increased its stake in shares of Allison Transmission by 85.2% in the first quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company's stock worth $237,234,000 after acquiring an additional 932,201 shares during the period. Hedge funds and other institutional investors own 96.90% of the company's stock.

Allison Transmission Stock Performance

Shares of NYSE ALSN opened at $131.74 on Wednesday. The company has a market capitalization of $10.88 billion, a PE ratio of 20.94, a price-to-earnings-growth ratio of 0.70 and a beta of 0.95. 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's fifty day moving average price is $119.58 and its 200 day moving average price is $119.57. 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 quarterly earnings data on Monday, August 3rd. The auto parts company reported $2.73 earnings per share for the quarter, beating analysts' consensus estimates of $2.48 by $0.25. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The company had revenue of $1.57 billion during the quarter, compared to analysts' expectations of $1.50 billion. During the same quarter in the previous year, the company earned $2.29 earnings per share. The firm's revenue for the quarter was up 92.4% on a year-over-year basis. On average, research analysts predict that Allison Transmission Holdings, Inc. will post 9.94 earnings per share for the current year.

Allison Transmission Dividend Announcement

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

Insiders Place Their Bets

In other news, insider Eric C. Scroggins sold 1,050 shares of the business's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $125.00, for a total transaction of $131,250.00. Following the completion of the sale, the insider owned 16,604 shares of the company's stock, valued at $2,075,500. The trade was a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 value of $3,551,362.76. Following the sale, the chief executive officer owned 304,843 shares of the company's stock, valued at $40,534,973.71. The trade was a 8.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.10% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on ALSN. Citigroup decreased their target price on shares of Allison Transmission from $135.00 to $125.00 and set a "neutral" rating for the company in a research report on Tuesday, July 14th. Weiss Ratings raised Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Morgan Stanley lifted their price objective on Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th. JPMorgan Chase & Co. boosted their price objective on Allison Transmission from $140.00 to $145.00 and gave the company a "neutral" rating in a report on Monday, July 13th. Finally, Wells Fargo & Company boosted their price objective on Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th. One investment 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 stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $131.17.

About Allison Transmission

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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