Hsbc Holdings PLC Makes New $7.39 Million Investment in Allison Transmission Holdings, Inc. $ALSN

Key Points

• HSBC Holdings acquired 65,423 shares of Allison Transmission worth approximately $7.39 million, representing about 0.08% of the company; institutional investors collectively own 96.9% of shares.
• Allison Transmission reported quarterly EPS of $2.73, beating estimates of $2.48, while revenue rose 92.4% year over year to $1.57 billion.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $131.17; the company also declared a quarterly dividend of $0.29 per share.

Hsbc Holdings PLC bought a new stake in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 65,423 shares of the auto parts company's stock, valued at approximately $7,387,000. Hsbc Holdings PLC owned approximately 0.08% of Allison Transmission as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. Millstone Evans Group LLC bought a new stake in Allison Transmission during the first quarter worth $26,000. Cedar Mountain Advisors LLC bought a new position in Allison Transmission in the 1st quarter valued at $27,000. Cassaday & Co Wealth Management LLC bought a new position in Allison Transmission in the 1st quarter valued at $28,000. Larson Financial Group LLC increased 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 valued at $31,000 after purchasing an additional 263 shares during the last quarter. Finally, Transamerica Financial Advisors LLC increased its position in shares of Allison Transmission by 2,112.5% during the 4th quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company's stock valued at $35,000 after purchasing an additional 338 shares during the last quarter. 96.90% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages recently weighed in on ALSN. Citigroup cut their price target 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. JPMorgan Chase & Co. raised their price objective on shares of Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. 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. Morgan Stanley increased their target price on shares of Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a research report on Friday, July 17th. Finally, Weiss Ratings upgraded shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, Allison Transmission currently has an average rating of "Moderate Buy" and a consensus price target of $131.17.

Allison Transmission Stock Down 2.1%

ALSN opened at $126.41 on Friday. The company has a 50 day moving average of $120.12 and a 200 day moving average of $119.82. The company has a market cap of $10.44 billion, a PE ratio of 20.10, a price-to-earnings-growth ratio of 0.69 and a beta of 0.95. Allison Transmission Holdings, Inc. has a 12 month low of $76.01 and a 12 month high of $137.62. The company has a current ratio of 1.81, a quick ratio of 1.17 and a debt-to-equity ratio of 2.07.

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

Allison Transmission Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, August 21st will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $1.16 dividend on an annualized basis and a yield of 0.9%. Allison Transmission's dividend payout ratio is 18.44%.

Insider Transactions at Allison Transmission

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source