LPL Financial LLC Raises Stake in Allison Transmission Holdings, Inc. (NYSE:ALSN)

Key Points

• LPL Financial LLC increased its stake in Allison Transmission Holdings by 10.4%, acquiring an additional 8,031 shares to own a total of 85,375 shares, valued at approximately $8.17 million.
• Several institutional investors have also adjusted their positions, with notable increases, including MassMutual Private Wealth boosting their holdings by 363%.
• Allison Transmission's stock received mixed analyst ratings, with target prices ranging from $74.00 to $123.00, reflecting a cautious outlook as the company has an average rating of "Hold" and an average target price of $98.38.

LPL Financial LLC grew its stake in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 10.4% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 85,375 shares of the auto parts company's stock after acquiring an additional 8,031 shares during the period. LPL Financial LLC owned about 0.10% of Allison Transmission worth $8,168,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in ALSN. Caisse DE Depot ET Placement DU Quebec increased its position in shares of Allison Transmission by 4,877.2% in the 4th quarter. Caisse DE Depot ET Placement DU Quebec now owns 444,518 shares of the auto parts company's stock valued at $48,035,000 after purchasing an additional 435,587 shares during the last quarter. Raymond James Financial Inc. purchased a new position in shares of Allison Transmission in the 4th quarter valued at $41,081,000. GAMMA Investing LLC grew its position in shares of Allison Transmission by 10,402.1% in the 1st quarter. GAMMA Investing LLC now owns 148,289 shares of the auto parts company's stock valued at $14,187,000 after buying an additional 146,877 shares during the last quarter. Jennison Associates LLC grew its position in shares of Allison Transmission by 26.4% in the 1st quarter. Jennison Associates LLC now owns 640,217 shares of the auto parts company's stock valued at $61,250,000 after buying an additional 133,635 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Allison Transmission in the 4th quarter valued at $13,550,000. 96.90% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on ALSN shares. The Goldman Sachs Group increased their target price on shares of Allison Transmission from $80.00 to $90.00 and gave the company a "sell" rating in a research report on Tuesday, May 27th. Morgan Stanley increased their price target on shares of Allison Transmission from $94.00 to $100.00 and gave the stock an "equal weight" rating in a research note on Tuesday, May 6th. Wall Street Zen cut shares of Allison Transmission from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Citigroup reduced their target price on shares of Allison Transmission from $105.00 to $100.00 and set a "neutral" rating for the company in a research note on Tuesday, June 24th. Finally, Bank of America raised their target price on shares of Allison Transmission from $74.00 to $79.00 and gave the stock an "underperform" rating in a research note on Monday, June 16th. Two analysts have rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $98.38.

Insiders Place Their Bets

In other Allison Transmission news, VP Ryan A. Milburn sold 3,412 shares of the firm's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total transaction of $359,078.88. Following the completion of the transaction, the vice president directly owned 11,924 shares in the company, valued at approximately $1,254,881.76. This trade represents a 22.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.10% of the company's stock.

Allison Transmission Price Performance

Shares of ALSN traded down $1.62 during trading hours on Thursday, reaching $89.08. The company had a trading volume of 289,619 shares, compared to its average volume of 800,508. The firm has a 50 day simple moving average of $92.64 and a 200-day simple moving average of $97.21. The company has a current ratio of 3.36, a quick ratio of 2.64 and a debt-to-equity ratio of 1.37. The company has a market capitalization of $7.45 billion, a price-to-earnings ratio of 10.12 and a beta of 0.97. Allison Transmission Holdings, Inc. has a 12-month low of $80.39 and a 12-month high of $122.53.

Allison Transmission (NYSE:ALSN - Get Free Report) last posted its earnings results on Monday, August 4th. The auto parts company reported $2.29 earnings per share for the quarter, beating the consensus estimate of $2.20 by $0.09. Allison Transmission had a net margin of 23.81% and a return on equity of 45.56%. The firm had revenue of $814.00 million during the quarter, compared to the consensus estimate of $811.05 million. During the same period last year, the firm posted $2.13 EPS. The firm's revenue for the quarter was down .2% on a year-over-year basis. Research analysts expect that Allison Transmission Holdings, Inc. will post 9.06 earnings per share for the current year.

Allison Transmission Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Wednesday, August 20th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 1.2%. The ex-dividend date is Wednesday, August 20th. Allison Transmission's dividend payout ratio (DPR) is 12.27%.

Allison Transmission Profile

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.