Bank of Nova Scotia Purchases 36,746 Shares of Allison Transmission Holdings, Inc. $ALSN

Key Points

• Bank of Nova Scotia increased its stake in Allison Transmission by 50.4% in the first quarter, buying 36,746 additional shares and bringing its total holding to 109,646 shares worth about $12.8 million.
• Allison Transmission has seen significant institutional interest overall, with several large investors boosting positions and institutional ownership now at 96.9% of the company.
• Analysts remain largely cautious on the stock: the consensus rating is Hold with an average price target of $131.17, even as the company recently beat earnings and revenue expectations and raised its dividend outlook.

Bank of Nova Scotia lifted its position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 50.4% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 109,646 shares of the auto parts company's stock after buying an additional 36,746 shares during the period. Bank of Nova Scotia owned approximately 0.13% of Allison Transmission worth $12,835,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of the company. Bank of Montreal Can lifted its holdings in Allison Transmission by 4,032.3% in the fourth 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 period. Norges Bank bought a new stake in shares of Allison Transmission during the 4th quarter valued at about $115,674,000. Boston Partners increased its position in shares of Allison Transmission by 117.6% during the 3rd quarter. Boston Partners now owns 2,038,429 shares of the auto parts company's stock valued at $173,093,000 after purchasing an additional 1,101,824 shares during the last quarter. First Trust Advisors LP lifted its stake in shares of Allison Transmission by 85.2% in the 1st quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company's stock worth $237,234,000 after purchasing an additional 932,201 shares during the period. Finally, Millennium Management LLC lifted its stake in shares of Allison Transmission by 191.7% in the 4th quarter. Millennium Management LLC now owns 1,257,353 shares of the auto parts company's stock worth $123,095,000 after purchasing an additional 826,352 shares during the period. Institutional investors own 96.90% of the company's stock.

Analyst Ratings Changes

ALSN has been the topic of a number of research reports. Morgan Stanley raised their price objective on shares of Allison Transmission from $126.00 to $130.00 and gave the stock an "equal weight" rating in a report on Friday, July 17th. Citigroup decreased their price target on shares of Allison Transmission from $135.00 to $125.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 14th. Wells Fargo & Company lifted their price target on shares of Allison Transmission from $127.00 to $137.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price objective on shares of Allison Transmission from $140.00 to $145.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. Finally, Weiss Ratings lowered Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $131.17.

Allison Transmission Trading Up 2.1%

Allison Transmission stock opened at $122.15 on Friday. The firm has a 50 day moving average of $115.79 and a 200 day moving average of $117.20. The firm has a market capitalization of $10.13 billion, a price-to-earnings ratio of 19.00, a P/E/G ratio of 0.68 and a beta of 0.95. Allison Transmission Holdings, Inc. has a 12-month low of $76.01 and a 12-month high of $137.62. The company has a current ratio of 1.85, a quick ratio of 1.18 and a debt-to-equity ratio of 2.23.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping analysts' consensus estimates of $2.10 by $0.47. The company had revenue of $1.41 billion for the quarter, compared to analysts' expectations of $1.38 billion. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. The firm's revenue was up 83.6% compared to the same quarter last year. During the same quarter last year, the business earned $2.23 EPS. As a group, research analysts predict that Allison Transmission Holdings, Inc. will post 9.65 earnings per share for the current year.

Allison Transmission Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Monday, May 18th were paid a dividend of $0.29 per share. The ex-dividend date was Monday, May 18th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.9%. Allison Transmission's payout ratio is 18.04%.

Insider Buying and Selling at Allison Transmission

In related news, CFO Scott A. Mell sold 2,270 shares of the company's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $125.00, for a total value of $283,750.00. Following the completion of the transaction, the chief financial officer owned 1,053 shares of the company's stock, valued at approximately $131,625. This represents a 68.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 1.10% of the company's stock.

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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