Catalyst Capital Advisors LLC Acquires Shares of 15,800 Allison Transmission Holdings, Inc. $ALSN

Key Points

• Catalyst Capital Advisors opened a new position in Allison Transmission, buying 15,800 shares worth about $1.85 million in the first quarter.
• Allison Transmission’s latest quarterly results beat expectations, with EPS of $2.57 versus $2.10 expected and revenue of $1.41 billion; revenue jumped 83.6% from a year earlier.
• The company continues to draw heavy institutional interest, with hedge funds and other investors owning 96.9% of the stock, while analysts maintain a Moderate Buy rating and average price target of $131.17.

Catalyst Capital Advisors LLC bought a new stake in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 15,800 shares of the auto parts company's stock, valued at approximately $1,850,000.

Several other hedge funds have also made changes to their positions in the business. Fuller & Thaler Asset Management Inc. grew its position in Allison Transmission by 16.4% in 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 buying an additional 466,366 shares during the last quarter. Boston Partners raised its position in Allison Transmission by 13.6% during the 4th quarter. Boston Partners now owns 2,316,240 shares of the auto parts company's stock worth $226,879,000 after buying an additional 277,811 shares during the last quarter. Bank of Montreal Can lifted its stake 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 worth $210,668,000 after acquiring an additional 2,099,797 shares during the period. AQR Capital Management LLC lifted its stake in shares of Allison Transmission by 18.9% in the 2nd quarter. AQR Capital Management LLC now owns 1,915,887 shares of the auto parts company's stock worth $181,741,000 after acquiring an additional 304,974 shares during the period. Finally, State Street Corp boosted its holdings in shares of Allison Transmission by 1.1% in the second quarter. State Street Corp now owns 1,652,290 shares of the auto parts company's stock valued at $156,951,000 after acquiring an additional 17,783 shares in the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

Allison Transmission Stock Performance

Shares of ALSN opened at $113.43 on Friday. The business's 50 day moving average is $116.08 and its two-hundred day moving average is $116.52. Allison Transmission Holdings, Inc. has a 52-week low of $76.01 and a 52-week high of $137.62. The firm has a market cap of $9.41 billion, a price-to-earnings ratio of 17.64, a PEG ratio of 0.63 and a beta of 0.95. 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 (NYSE:ALSN - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share (EPS) for the quarter, topping 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 net margin of 14.88% and a return on equity of 37.50%. The business's revenue was up 83.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.23 earnings per share. Analysts forecast that Allison Transmission Holdings, Inc. will post 9.84 EPS for the current fiscal year.

Allison Transmission Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders 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 annualized dividend and a yield of 1.0%. Allison Transmission's payout ratio is presently 18.04%.

Analyst Ratings Changes

ALSN has been the subject of several research analyst reports. Wells Fargo & Company raised their price objective on Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Weiss Ratings raised shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 2nd. JPMorgan Chase & Co. raised their price target on Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Morgan Stanley upped their price objective on Allison Transmission from $126.00 to $130.00 and gave the stock an "equal weight" rating in a report on Friday. Finally, Zacks Research cut shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $131.17.

Insider Buying and Selling at Allison Transmission

In other news, CFO Scott A. Mell sold 2,270 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $125.00, for a total value of $283,750.00. Following the transaction, the chief financial officer directly owned 1,053 shares in the company, valued at approximately $131,625. This trade represents a 68.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 1.10% of the company's stock.

Allison Transmission Company 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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