Allison Transmission Holdings, Inc. (NYSE:ALSN) Shares Acquired by Federated Hermes Inc.

Key Points

• Federated Hermes Inc. increased its stake in Allison Transmission Holdings, purchasing an additional 181,568 shares to own approximately 1.35% of the company, valued at nearly $109 million.
• The company recently announced a quarterly dividend of $0.27 per share, resulting in an annualized dividend of $1.08 with a yield of 1.23%.
• Analysts have downgraded Allison Transmission's stock from "buy" to "hold", with an average target price of $98.38, as the company aims to recover after a revenue decline of 2.9% year-over-year.

Federated Hermes Inc. raised its position in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 19.0% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 1,138,259 shares of the auto parts company's stock after purchasing an additional 181,568 shares during the quarter. Federated Hermes Inc. owned 1.35% of Allison Transmission worth $108,897,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the company. Vident Advisory LLC grew its stake in Allison Transmission by 1.0% during the 4th quarter. Vident Advisory LLC now owns 10,182 shares of the auto parts company's stock valued at $1,100,000 after purchasing an additional 102 shares during the last quarter. KBC Group NV grew its stake in Allison Transmission by 3.7% during the 1st quarter. KBC Group NV now owns 3,596 shares of the auto parts company's stock valued at $344,000 after purchasing an additional 127 shares during the last quarter. GAMMA Investing LLC grew its stake in Allison Transmission by 9.8% during the 1st quarter. GAMMA Investing LLC now owns 1,550 shares of the auto parts company's stock valued at $148,000 after purchasing an additional 138 shares during the last quarter. Delta Investment Management LLC boosted its stake in shares of Allison Transmission by 3.4% in the fourth quarter. Delta Investment Management LLC now owns 4,540 shares of the auto parts company's stock worth $491,000 after buying an additional 151 shares during the last quarter. Finally, Private Trust Co. NA boosted its stake in shares of Allison Transmission by 32.8% in the first quarter. Private Trust Co. NA now owns 636 shares of the auto parts company's stock worth $61,000 after buying an additional 157 shares during the last quarter. Hedge funds and other institutional investors own 96.90% of the company's stock.

Insiders Place Their Bets

In other Allison Transmission news, VP Ryan A. Milburn sold 3,412 shares of the firm's stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $105.24, for a total value of $359,078.88. Following the sale, the vice president directly owned 11,924 shares in the company, valued at $1,254,881.76. This trade represents a 22.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.10% of the stock is currently owned by corporate insiders.

Allison Transmission Stock Down 2.8%

NYSE:ALSN traded down $2.52 during midday trading on Friday, reaching $87.55. The company had a trading volume of 796,130 shares, compared to its average volume of 779,764. The firm has a market capitalization of $7.38 billion, a price-to-earnings ratio of 10.16 and a beta of 0.96. The stock's fifty day simple moving average is $95.32 and its 200-day simple moving average is $99.10. Allison Transmission Holdings, Inc. has a 12-month low of $78.71 and a 12-month high of $122.53. The company has a current ratio of 3.05, a quick ratio of 2.37 and a debt-to-equity ratio of 1.44.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Thursday, May 1st. The auto parts company reported $2.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.97 by $0.26. Allison Transmission had a return on equity of 46.97% and a net margin of 23.55%. The firm had revenue of $766.00 million during the quarter, compared to analyst estimates of $792.18 million. During the same period last year, the business posted $1.90 earnings per share. Allison Transmission's revenue was down 2.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Allison Transmission Holdings, Inc. will post 9.06 earnings per share for the current fiscal year.

Allison Transmission Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 30th. Shareholders of record on Monday, May 19th were paid a $0.27 dividend. The ex-dividend date was Monday, May 19th. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. Allison Transmission's dividend payout ratio (DPR) is currently 12.50%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on ALSN shares. Wall Street Zen downgraded Allison Transmission from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. JPMorgan Chase & Co. dropped their price target on Allison Transmission from $110.00 to $98.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. The Goldman Sachs Group increased their price objective on Allison Transmission from $80.00 to $90.00 and gave the stock a "sell" rating in a research report on Tuesday, May 27th. Citigroup lowered their price objective on Allison Transmission from $105.00 to $100.00 and set a "neutral" rating for the company in a research report on Tuesday, June 24th. Finally, Robert W. Baird lowered their price target on Allison Transmission from $123.00 to $100.00 and set a "neutral" rating for the company in a research report on Tuesday, April 15th. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $98.38.

Allison Transmission Company Profile

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.