Geode Capital Management LLC Lowers Position in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Geode Capital Management trimmed its Allison Transmission stake by 1.0% in the fourth quarter, though it still held 1,960,380 shares valued at about $191.95 million.
• Allison Transmission’s latest earnings beat expectations, reporting $2.57 EPS versus $2.10 expected and revenue of $1.41 billion versus $1.38 billion expected, with revenue up 83.6% year over year.
• Analyst sentiment remains cautious: the stock has a consensus Hold rating and an average price target of $120.29, while recent reports included several target increases alongside downgrades.

Geode Capital Management LLC lessened its holdings in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 1.0% during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,960,380 shares of the auto parts company's stock after selling 19,928 shares during the period. Geode Capital Management LLC owned 2.36% of Allison Transmission worth $191,952,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Caprock Group LLC raised its position in Allison Transmission by 191.5% during the fourth quarter. Caprock Group LLC now owns 26,051 shares of the auto parts company's stock valued at $2,550,000 after purchasing an additional 17,114 shares in the last quarter. SG Americas Securities LLC raised its position in Allison Transmission by 109.9% during the fourth quarter. SG Americas Securities LLC now owns 17,014 shares of the auto parts company's stock valued at $1,666,000 after purchasing an additional 8,910 shares in the last quarter. Alps Advisors Inc. purchased a new stake in Allison Transmission during the third quarter valued at about $14,175,000. JPMorgan Chase & Co. raised its position in Allison Transmission by 6.5% during the third quarter. JPMorgan Chase & Co. now owns 377,739 shares of the auto parts company's stock valued at $32,063,000 after purchasing an additional 23,025 shares in the last quarter. Finally, UBS Group AG raised its position in Allison Transmission by 30.4% during the fourth quarter. UBS Group AG now owns 1,252,197 shares of the auto parts company's stock valued at $122,590,000 after purchasing an additional 291,649 shares in the last quarter. Hedge funds and other institutional investors own 96.90% of the company's stock.

Analyst Ratings Changes

ALSN has been the topic of a number of research reports. Wells Fargo & Company raised their price target on Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 6th. Zacks Research downgraded Allison Transmission from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. Oppenheimer raised their price target on Allison Transmission from $115.00 to $135.00 and gave the company an "outperform" rating in a research report on Tuesday, February 24th. Citigroup raised their price target on Allison Transmission from $130.00 to $135.00 and gave the company a "neutral" rating in a research report on Monday, April 13th. Finally, Weiss Ratings downgraded Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, May 21st. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $120.29.

Allison Transmission Stock Up 2.5%

ALSN opened at $119.02 on Thursday. The company has a market cap of $9.87 billion, a P/E ratio of 18.51, a P/E/G ratio of 0.62 and a beta of 0.94. The business's 50-day moving average price is $121.34 and its 200-day moving average price is $111.20. The company has a current ratio of 1.85, a quick ratio of 1.18 and a debt-to-equity ratio of 2.23. Allison Transmission Holdings, Inc. has a 12 month low of $76.01 and a 12 month high of $137.62.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its quarterly earnings data on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping the consensus estimate of $2.10 by $0.47. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.38 billion. Allison Transmission had a return on equity of 37.50% and a net margin of 14.88%.The company's quarterly revenue was up 83.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.23 earnings per share. On average, equities analysts expect that Allison Transmission Holdings, Inc. will post 9.96 EPS for the current year.

Allison Transmission Dividend Announcement

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

Insider Activity

In other news, insider Eric C. Scroggins sold 1,313 shares of Allison Transmission stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $114.40, for a total value of $150,207.20. Following the transaction, the insider owned 17,654 shares in the company, valued at approximately $2,019,617.60. The trade was a 6.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Scott A. Mell sold 2,270 shares of Allison Transmission stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $125.00, for a total value of $283,750.00. Following the completion of the transaction, the chief financial officer owned 1,053 shares in the company, valued at approximately $131,625. This represents a 68.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.10% of the stock is currently owned by insiders.

About Allison Transmission

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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