Canada Pension Plan Investment Board Cuts Stake in Allison Transmission Holdings, Inc. $ALSN

Key Points

• The Canada Pension Plan Investment Board reduced its stake in Allison Transmission by 5.6% in the first quarter, owning approximately 60,993 shares valued at $5.83 million.
• A significant number of institutional investors have recently increased their holdings in Allison Transmission, with Caxton Associates LP raising its stake by 208.3% in the fourth quarter.
• Research analysts have mixed ratings for Allison Transmission, with target price adjustments ranging from $74 to $105 and a consensus rating of "Reduce."

Canada Pension Plan Investment Board cut its stake in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 5.6% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 60,993 shares of the auto parts company's stock after selling 3,607 shares during the period. Canada Pension Plan Investment Board owned approximately 0.07% of Allison Transmission worth $5,835,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Dimensional Fund Advisors LP boosted its stake in shares of Allison Transmission by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,867,799 shares of the auto parts company's stock valued at $178,686,000 after purchasing an additional 10,208 shares during the period. Invesco Ltd. lifted its stake in Allison Transmission by 6.8% in the first quarter. Invesco Ltd. now owns 1,262,619 shares of the auto parts company's stock worth $120,795,000 after acquiring an additional 80,653 shares during the last quarter. Federated Hermes Inc. lifted its stake in Allison Transmission by 19.0% in the first quarter. Federated Hermes Inc. now owns 1,138,259 shares of the auto parts company's stock worth $108,897,000 after acquiring an additional 181,568 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec lifted its stake in Allison Transmission by 109.1% in the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 929,434 shares of the auto parts company's stock worth $88,919,000 after acquiring an additional 484,916 shares during the last quarter. Finally, Jennison Associates LLC lifted its stake in Allison Transmission by 26.4% in the first quarter. Jennison Associates LLC now owns 640,217 shares of the auto parts company's stock worth $61,250,000 after acquiring an additional 133,635 shares during the last quarter. Hedge funds and other institutional investors own 96.90% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ALSN. Wall Street Zen downgraded shares of Allison Transmission from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Zacks Research downgraded shares of Allison Transmission from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 19th. Bank of America boosted their price objective on shares of Allison Transmission from $74.00 to $79.00 and gave the company an "underperform" rating in a research note on Monday, June 16th. Citigroup dropped their price objective on shares of Allison Transmission from $105.00 to $100.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 24th. Finally, The Goldman Sachs Group boosted their price objective on shares of Allison Transmission from $80.00 to $90.00 and gave the company a "sell" rating in a research note on Tuesday, May 27th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $98.38.

Allison Transmission Price Performance

Shares of NYSE:ALSN traded up $0.75 on Friday, reaching $89.98. 800,045 shares of the company were exchanged, compared to its average volume of 897,915. The company has a current ratio of 3.36, a quick ratio of 2.64 and a debt-to-equity ratio of 1.37. Allison Transmission Holdings, Inc. has a 1-year low of $80.39 and a 1-year high of $122.53. The firm has a market cap of $7.52 billion, a price-to-earnings ratio of 10.23 and a beta of 1.02. The company has a 50-day moving average of $89.74 and a 200-day moving average of $94.37.

Allison Transmission (NYSE:ALSN - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The auto parts company reported $2.29 earnings per share for the quarter, topping analysts' consensus estimates of $2.20 by $0.09. The business had revenue of $814.00 million for the quarter, compared to analysts' expectations of $811.05 million. Allison Transmission had a net margin of 23.81% and a return on equity of 45.56%. The business's revenue for the quarter was down .2% on a year-over-year basis. During the same period in the prior year, the company posted $2.13 EPS. Allison Transmission has set its FY 2025 guidance at EPS. Equities analysts forecast that Allison Transmission Holdings, Inc. will post 9.06 earnings per share for the current fiscal year.

Allison Transmission Announces Dividend

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