Pinnbrook Capital Management LP Takes Position in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Pinnbrook Capital Management disclosed a new fourth-quarter position in Allison Transmission, buying 40,092 shares valued at about $3.93 million.
• Allison Transmission’s latest earnings topped expectations, with Q1 EPS of $2.57 versus the $2.10 estimate and revenue of $1.41 billion, up 83.6% year over year.
• The company also announced a quarterly dividend of $0.29 per share, payable May 29, for an annualized yield of about 1.1%.

Pinnbrook Capital Management LP purchased a new position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 40,092 shares of the auto parts company's stock, valued at approximately $3,925,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Global Retirement Partners LLC increased its stake in shares of Allison Transmission by 285.9% in the fourth quarter. Global Retirement Partners LLC now owns 2,516 shares of the auto parts company's stock worth $246,000 after buying an additional 1,864 shares during the last quarter. Leonteq Securities AG bought a new stake in shares of Allison Transmission in the fourth quarter worth $147,000. IFP Advisors Inc increased its stake in shares of Allison Transmission by 7.4% in the fourth quarter. IFP Advisors Inc now owns 5,238 shares of the auto parts company's stock worth $513,000 after buying an additional 360 shares during the last quarter. Covestor Ltd increased its stake in shares of Allison Transmission by 16.7% in the fourth quarter. Covestor Ltd now owns 1,644 shares of the auto parts company's stock worth $161,000 after buying an additional 235 shares during the last quarter. Finally, PNC Financial Services Group Inc. increased its stake in shares of Allison Transmission by 3.1% in the fourth quarter. PNC Financial Services Group Inc. now owns 32,547 shares of the auto parts company's stock worth $3,186,000 after buying an additional 981 shares during the last quarter. Institutional investors own 96.90% of the company's stock.

Insider Buying and Selling at Allison Transmission

In other news, CFO Scott A. Mell sold 2,270 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $125.00, for a total transaction of $283,750.00. Following the completion of the transaction, the chief financial officer owned 1,053 shares of the company's stock, valued at approximately $131,625. The trade was a 68.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Eric C. Scroggins sold 1,313 shares of the business's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $114.40, for a total transaction of $150,207.20. Following the transaction, the insider directly owned 17,654 shares of the company's stock, valued at approximately $2,019,617.60. This trade represents a 6.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.10% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ALSN. Wells Fargo & Company lifted their price target on shares of Allison Transmission from $127.00 to $137.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Zacks Research lowered shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. Citigroup lifted their price target on shares of Allison Transmission from $130.00 to $135.00 and gave the stock a "neutral" rating in a research note on Monday, April 13th. Morgan Stanley lifted their price target on shares of Allison Transmission from $117.00 to $126.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 13th. Finally, Weiss Ratings upgraded shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $116.50.

Allison Transmission Stock Up 0.6%

ALSN stock opened at $108.99 on Friday. The company has a debt-to-equity ratio of 2.23, a current ratio of 1.85 and a quick ratio of 1.18. Allison Transmission Holdings, Inc. has a 1-year low of $76.01 and a 1-year high of $137.62. The firm has a fifty day moving average price of $121.26 and a two-hundred day moving average price of $109.17. The firm has a market cap of $9.04 billion, a price-to-earnings ratio of 16.95, a PEG ratio of 0.59 and a beta of 1.01.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.10 by $0.47. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. The firm had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the firm earned $2.23 earnings per share. The firm's revenue for the quarter was up 83.6% compared to the same quarter last year. Research analysts predict that Allison Transmission Holdings, Inc. will post 9.86 EPS for the current year.

Allison Transmission Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Monday, May 18th will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Monday, May 18th. This represents a $1.16 annualized dividend and a dividend yield of 1.1%. Allison Transmission's payout ratio is 18.04%.

Allison Transmission 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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