Stockbridge Partners LLC Purchases New Holdings in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Stockbridge Partners acquired nearly 1.5 million Allison Transmission shares worth approximately $169.1 million, making the stock its 11th-largest holding and representing about 1.82% of the company.
• Allison reported strong quarterly results, with EPS of $2.73 beating estimates by $0.25 and revenue rising 92.4% year over year to $1.57 billion.
• The company declared a quarterly dividend of $0.29 per share, equal to an annualized $1.16 and a 0.9% yield. Analysts maintain a consensus “Moderate Buy” rating with a $131.17 price target.

Stockbridge Partners LLC acquired a new position in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 1,499,984 shares of the auto parts company's stock, valued at approximately $169,108,000. Allison Transmission comprises about 3.6% of Stockbridge Partners LLC's investment portfolio, making the stock its 11th largest holding. Stockbridge Partners LLC owned approximately 1.82% of Allison Transmission as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Algert Global LLC raised its holdings in shares of Allison Transmission by 5.6% in the second quarter. Algert Global LLC now owns 121,849 shares of the auto parts company's stock worth $13,737,000 after buying an additional 6,430 shares during the period. Sanctuary Advisors LLC purchased a new position in Allison Transmission during the 2nd quarter valued at $552,000. Bank of Nova Scotia purchased a new position in Allison Transmission during the 2nd quarter valued at $6,717,000. Kendall Capital Management bought a new position in Allison Transmission in the 2nd quarter valued at $1,728,000. Finally, Elevation Point Wealth Partners LLC bought a new position in Allison Transmission in the 2nd quarter valued at $382,000. Institutional investors own 96.90% of the company's stock.

Allison Transmission Stock Performance

ALSN stock opened at $131.41 on Tuesday. Allison Transmission Holdings, Inc. has a one year low of $76.01 and a one year high of $137.62. The firm has a market cap of $10.85 billion, a price-to-earnings ratio of 20.89, a PEG ratio of 0.71 and a beta of 0.95. The company has a debt-to-equity ratio of 2.07, a quick ratio of 1.17 and a current ratio of 1.81. The firm has a 50-day simple moving average of $119.37 and a two-hundred day simple moving average of $119.45.

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

Allison Transmission Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, August 21st will be paid a dividend of $0.29 per share. The ex-dividend date 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 presently 18.44%.

Insider Activity

In other Allison Transmission news, insider Eric C. Scroggins sold 1,050 shares of the firm's stock in a transaction on Tuesday, August 11th. The shares were 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 of the company's stock, valued at approximately $2,075,500. This trade represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 1.10% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Weiss Ratings upgraded shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. upped their target price on shares of Allison Transmission from $140.00 to $145.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. Wells Fargo & Company raised their target price on shares of Allison Transmission from $127.00 to $137.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. Citigroup decreased their price target on shares of Allison Transmission from $135.00 to $125.00 and set a "neutral" rating for the company in a research note on Tuesday, July 14th. Finally, Morgan Stanley boosted their price target on Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a report on Friday, July 17th. One research 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. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $131.17.

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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