Islay Capital Management LLC Grows Position in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Islay Capital increased its position in Allison Transmission by 82.5% in Q3 to 19,989 shares (about $1.697M), and institutional investors now own 96.9% of the company.
• Allison raised its quarterly dividend to $0.29 (annualized $1.16), up from $0.27, implying a yield of ~0.9% and a payout ratio of 14.73%.
• Analysts are mixed with a consensus "Hold" rating and a $111.11 target; the stock recently opened at $122.17 (52‑week range $76.01–$128.85) and is down 3.8%.

Islay Capital Management LLC raised its position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 82.5% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 19,989 shares of the auto parts company's stock after purchasing an additional 9,036 shares during the quarter. Islay Capital Management LLC's holdings in Allison Transmission were worth $1,697,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the company. Jane Street Group LLC lifted its stake in shares of Allison Transmission by 341.3% during the 1st quarter. Jane Street Group LLC now owns 288,674 shares of the auto parts company's stock worth $27,617,000 after acquiring an additional 223,253 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Allison Transmission by 5.7% in the first quarter. Goldman Sachs Group Inc. now owns 214,907 shares of the auto parts company's stock worth $20,560,000 after purchasing an additional 11,542 shares during the period. Assetmark Inc. lifted its position in shares of Allison Transmission by 136.5% during the second quarter. Assetmark Inc. now owns 2,119 shares of the auto parts company's stock worth $201,000 after purchasing an additional 1,223 shares during the last quarter. Bank of Montreal Can lifted its position in shares of Allison Transmission by 2.6% during the second quarter. Bank of Montreal Can now owns 70,863 shares of the auto parts company's stock worth $6,731,000 after purchasing an additional 1,824 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its stake in shares of Allison Transmission by 9.6% during the second quarter. Bank of New York Mellon Corp now owns 638,600 shares of the auto parts company's stock valued at $60,661,000 after purchasing an additional 55,952 shares during the period. Institutional investors own 96.90% of the company's stock.

Allison Transmission Stock Down 3.8%

NYSE:ALSN opened at $122.17 on Friday. The company's 50-day simple moving average is $111.85 and its 200-day simple moving average is $95.88. The company has a debt-to-equity ratio of 1.55, a quick ratio of 4.17 and a current ratio of 4.85. Allison Transmission Holdings, Inc. has a fifty-two week low of $76.01 and a fifty-two week high of $128.85. The stock has a market capitalization of $10.12 billion, a P/E ratio of 16.67, a P/E/G ratio of 0.83 and a beta of 0.96.

Allison Transmission Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Monday, March 9th will be issued a dividend of $0.29 per share. The ex-dividend date is Monday, March 9th. This represents a $1.16 annualized dividend and a dividend yield of 0.9%. This is a boost from Allison Transmission's previous quarterly dividend of $0.27. Allison Transmission's dividend payout ratio (DPR) is currently 14.73%.

Analyst Ratings Changes

A number of brokerages recently weighed in on ALSN. Morgan Stanley lifted their price objective on shares of Allison Transmission from $97.00 to $109.00 and gave the company an "equal weight" rating in a report on Friday, January 23rd. Citigroup lifted their price target on shares of Allison Transmission from $110.00 to $130.00 and gave the company a "neutral" rating in a research note on Wednesday, February 25th. Zacks Research upgraded Allison Transmission from a "hold" rating to a "strong-buy" rating in a report on Monday, January 26th. Weiss Ratings lowered Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, February 25th. Finally, Wells Fargo & Company upped their target price on Allison Transmission from $98.00 to $127.00 and gave the stock an "equal weight" rating in a report on Thursday, February 26th. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Allison Transmission currently has an average rating of "Hold" and a consensus target price of $111.11.

Insider Buying and Selling at Allison Transmission

In related news, SVP John Coll sold 1,791 shares of the business's stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $98.79, for a total transaction of $176,932.89. Following the transaction, the senior vice president directly owned 10,021 shares in the company, valued at $989,974.59. The trade was a 15.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.10% of the stock is owned by insiders.

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.

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