Hsbc Holdings PLC Sells 17,451 Shares of Allison Transmission Holdings, Inc. $ALSN

Key Points

• HSBC Holdings PLC reduced its Allison Transmission stake by 10.3% in the fourth quarter, selling 17,451 shares and ending with 152,682 shares valued at about $15 million.
• Allison Transmission recently posted better-than-expected earnings, with quarterly EPS of $2.57 versus estimates of $2.10 and revenue of $1.41 billion, up 83.6% year over year.
• Analyst sentiment remains cautious: the stock has a consensus rating of Hold with an average target price of $127.17, while CFO Scott A. Mell also sold 2,270 shares in May.

Hsbc Holdings PLC trimmed its holdings in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 10.3% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 152,682 shares of the auto parts company's stock after selling 17,451 shares during the period. Hsbc Holdings PLC owned about 0.18% of Allison Transmission worth $15,012,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Larson Financial Group LLC lifted its stake in shares of Allison Transmission by 536.7% in the 4th quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company's stock valued at $31,000 after acquiring an additional 263 shares during the last quarter. Transamerica Financial Advisors LLC grew its position in 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 worth $35,000 after acquiring an additional 338 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in Allison Transmission in the 4th quarter worth approximately $51,000. Advisory Services Network LLC purchased a new position in Allison Transmission in the 3rd quarter worth approximately $61,000. Finally, Platinum Investment Management Ltd. bought a new stake in Allison Transmission in the fourth quarter valued at approximately $62,000. 96.90% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

ALSN has been the subject of a number of analyst reports. Wells Fargo & Company increased 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. Citigroup upped their price target on shares of Allison Transmission from $130.00 to $135.00 and gave the company a "neutral" rating in a report on Monday, April 13th. Zacks Research cut shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. Morgan Stanley boosted their price objective on shares of Allison Transmission from $117.00 to $126.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 13th. Finally, Weiss Ratings downgraded shares of Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $127.17.

Insider Buying and Selling

In other Allison Transmission news, CFO Scott A. Mell sold 2,270 shares of Allison Transmission stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $125.00, for a total transaction of $283,750.00. Following the sale, the chief financial officer directly owned 1,053 shares of the company's stock, valued at approximately $131,625. The trade was a 68.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.10% of the stock is owned by company insiders.

Allison Transmission Price Performance

ALSN opened at $124.35 on Friday. The company has a debt-to-equity ratio of 2.23, a quick ratio of 1.18 and a current ratio of 1.85. The stock has a market capitalization of $10.31 billion, a PE ratio of 19.34, a price-to-earnings-growth ratio of 0.65 and a beta of 0.94. The stock's 50 day moving average price is $120.72 and its 200-day moving average price is $114.81. 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 quarterly earnings results on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping analysts' consensus estimates of $2.10 by $0.47. The company had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.38 billion. Allison Transmission had a return on equity of 37.50% and a net margin of 14.88%.The firm's revenue was up 83.6% on a year-over-year basis. During the same quarter last year, the firm posted $2.23 earnings per share. On average, equities research analysts predict that Allison Transmission Holdings, Inc. will post 9.86 EPS for the current year.

Allison Transmission Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Monday, May 18th were paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Monday, May 18th. Allison Transmission's dividend payout ratio is presently 18.04%.

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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