Castleark Management LLC Buys Shares of 50,630 Allison Transmission Holdings, Inc. $ALSN

Key Points

• Castleark Management initiated a position in Allison Transmission, buying 50,630 shares valued at approximately $5.9 million. Institutional investors collectively own 96.9% of the company.
• Allison reported quarterly EPS of $2.57, exceeding estimates of $2.10, while revenue rose 83.6% year over year to $1.41 billion. The company also maintains a $0.29 quarterly dividend, yielding about 1.0% annually.
• Analysts remain cautious, with a consensus “Hold” rating and an average price target of $131.17, compared with the stock’s reported price of $121.92.

Castleark Management LLC purchased a new position in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 50,630 shares of the auto parts company's stock, valued at approximately $5,927,000. Castleark Management LLC owned approximately 0.06% of Allison Transmission at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of ALSN. Millstone Evans Group LLC purchased a new stake in shares of Allison Transmission in the first quarter valued at about $26,000. Cedar Mountain Advisors LLC purchased a new position in shares of Allison Transmission during the 1st quarter worth approximately $27,000. Cassaday & Co Wealth Management LLC purchased a new position in shares of Allison Transmission during the 1st quarter worth approximately $28,000. Larson Financial Group LLC raised its position in shares of Allison Transmission by 536.7% during the 4th quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company's stock worth $31,000 after purchasing an additional 263 shares during the last quarter. Finally, Transamerica Financial Advisors LLC lifted its stake in Allison Transmission by 2,112.5% in the 4th quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company's stock valued at $35,000 after buying an additional 338 shares in the last quarter. Hedge funds and other institutional investors own 96.90% of the company's stock.

Allison Transmission Trading Down 0.3%

Shares of ALSN stock opened at $121.92 on Tuesday. The company has a quick ratio of 1.18, a current ratio of 1.85 and a debt-to-equity ratio of 2.23. Allison Transmission Holdings, Inc. has a fifty-two week low of $76.01 and a fifty-two week high of $137.62. The firm's 50 day moving average price is $115.94 and its two-hundred day moving average price is $117.48. The stock has a market cap of $10.11 billion, a price-to-earnings ratio of 18.96, a price-to-earnings-growth ratio of 0.68 and a beta of 0.95.

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

Allison Transmission Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Monday, May 18th were paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Monday, May 18th. Allison Transmission's dividend payout ratio is 18.04%.

Analysts Set New Price Targets

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

Insider Activity at Allison Transmission

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