Freestone Grove Partners LP Purchases New Shares in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Freestone Grove Partners acquired 272,676 Allison Transmission shares worth approximately $30.7 million, representing about 0.33% of the company. Institutional investors and hedge funds collectively own 96.9% of Allison’s stock.
• Allison reported quarterly earnings of $2.73 per share, beating estimates by $0.25, while revenue rose 92.4% year over year to $1.57 billion. Shares recently traded at $129.07, near the consensus analyst target of $131.17.
• The company declared a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a 0.9% yield. Analysts maintain a “Moderate Buy” consensus, although recent insider transactions were sales by the CEO and another executive.

Freestone Grove Partners LP purchased a new position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 272,676 shares of the auto parts company's stock, valued at approximately $30,741,000. Freestone Grove Partners LP owned approximately 0.33% of Allison Transmission at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Allison Transmission during the second quarter valued at approximately $448,232,000. Bank of Montreal Can boosted its stake in 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 purchasing an additional 2,099,797 shares during the period. Stockbridge Partners LLC purchased a new position in Allison Transmission during the 2nd quarter worth approximately $169,108,000. Norges Bank purchased a new position in Allison Transmission during the 4th quarter worth approximately $115,674,000. Finally, Boston Partners raised its stake in 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 period. Institutional investors and hedge funds own 96.90% of the company's stock.

Allison Transmission Trading Up 0.2%

Shares of NYSE:ALSN opened at $129.07 on Friday. The company has a debt-to-equity ratio of 2.07, a quick ratio of 1.17 and a current ratio of 1.81. The stock's 50-day moving average is $119.98 and its 200-day moving average is $119.77. The company has a market cap of $10.66 billion, a P/E ratio of 20.52, a P/E/G ratio of 0.69 and a beta of 0.95. Allison Transmission Holdings, Inc. has a 52-week low of $76.01 and a 52-week high of $137.62.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its earnings results on Monday, August 3rd. The auto parts company reported $2.73 earnings per share for the quarter, beating the consensus estimate of $2.48 by $0.25. The firm had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.50 billion. Allison Transmission had a return on equity of 38.18% and a net margin of 12.02%.The firm's revenue for the quarter was up 92.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.29 EPS. Equities research analysts predict that Allison Transmission Holdings, Inc. will post 9.94 earnings per share for the current year.

Allison Transmission Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, August 21st will be paid a $0.29 dividend. The ex-dividend date is Friday, August 21st. This represents a $1.16 annualized dividend and a dividend yield of 0.9%. Allison Transmission's dividend payout ratio (DPR) is presently 18.44%.

Insider Buying and Selling at Allison Transmission

In other Allison Transmission news, CEO David S. Graziosi sold 26,708 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $132.97, for a total value of $3,551,362.76. Following the completion of the sale, the chief executive officer directly owned 304,843 shares of the company's stock, valued at $40,534,973.71. This represents a 8.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Eric C. Scroggins sold 1,050 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total transaction of $131,250.00. Following the completion of the sale, the insider owned 16,604 shares in the company, valued at $2,075,500. This represents a 5.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.10% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on ALSN. Morgan Stanley raised their target price on Allison Transmission from $126.00 to $130.00 and gave the stock an "equal weight" rating in a research report on Friday, July 17th. Weiss Ratings raised shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Wells Fargo & Company lifted 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. JPMorgan Chase & Co. boosted their target price on Allison Transmission from $140.00 to $145.00 and gave the company a "neutral" rating in a research note on Monday, July 13th. Finally, Citigroup decreased their target price on shares of Allison Transmission from $135.00 to $125.00 and set a "neutral" rating for the company in a research report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $131.17.

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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