Systematic Financial Management LP Raises Position in Allison Transmission Holdings, Inc. $ALSN

Key Points

• Systematic Financial Management LP increased its stake in Allison Transmission by 52.2% in the fourth quarter, adding 10,145 shares and bringing its total holdings to 29,585 shares valued at about $2.9 million.
• Allison Transmission reported strong quarterly results, with earnings of $2.57 per share beating estimates and revenue of $1.41 billion topping expectations. Revenue also rose 83.6% from a year earlier.
• The company announced a quarterly dividend of $0.29 per share, payable May 29, while analysts currently rate the stock a consensus Hold with an average price target of $116.50.

Systematic Financial Management LP boosted its stake in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 52.2% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 29,585 shares of the auto parts company's stock after buying an additional 10,145 shares during the period. Systematic Financial Management LP's holdings in Allison Transmission were worth $2,896,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Boston Partners increased its stake in shares of Allison Transmission by 117.6% during the third quarter. Boston Partners now owns 2,038,429 shares of the auto parts company's stock valued at $173,093,000 after purchasing an additional 1,101,824 shares in the last quarter. AQR Capital Management LLC increased its stake in shares of Allison Transmission by 18.9% during the second quarter. AQR Capital Management LLC now owns 1,915,887 shares of the auto parts company's stock valued at $181,741,000 after purchasing an additional 304,974 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Allison Transmission by 1.8% during the third quarter. Dimensional Fund Advisors LP now owns 1,907,768 shares of the auto parts company's stock valued at $161,926,000 after purchasing an additional 32,996 shares in the last quarter. State Street Corp increased its stake in shares of Allison Transmission by 1.1% during the second quarter. State Street Corp now owns 1,652,290 shares of the auto parts company's stock valued at $156,951,000 after purchasing an additional 17,783 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its stake in shares of Allison Transmission by 4.5% during the third quarter. Qube Research & Technologies Ltd now owns 1,270,098 shares of the auto parts company's stock valued at $107,806,000 after purchasing an additional 54,201 shares in the last quarter. Institutional investors own 96.90% of the company's stock.

Allison Transmission Price Performance

Shares of ALSN opened at $109.86 on Monday. The company has a market capitalization of $9.11 billion, a P/E ratio of 17.09, a price-to-earnings-growth ratio of 0.59 and a beta of 1.01. The company has a quick ratio of 1.18, a current ratio of 1.85 and a debt-to-equity ratio of 2.23. The firm has a 50 day moving average of $121.20 and a 200 day moving average of $109.37. Allison Transmission Holdings, Inc. has a twelve month low of $76.01 and a twelve month 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 earnings per share for the quarter, beating the consensus estimate of $2.10 by $0.47. The company had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.38 billion. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. The firm's quarterly revenue was up 83.6% compared to the same quarter last year. During the same quarter last year, the firm earned $2.23 earnings per share. As a group, equities research analysts anticipate that Allison Transmission Holdings, Inc. will post 9.86 earnings per share for the current fiscal year.

Allison Transmission Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Monday, May 18th will be given 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 dividend payout ratio (DPR) is 18.04%.

Insider Activity at Allison Transmission

In related news, CFO Scott A. Mell sold 2,270 shares of the firm's stock in a transaction that occurred 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 sale, the chief financial officer owned 1,053 shares of the company's stock, valued at $131,625. This trade represents a 68.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Eric C. Scroggins sold 1,313 shares of Allison Transmission stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $114.40, for a total transaction of $150,207.20. Following the completion of the sale, 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. 1.10% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

ALSN has been the subject of a number of analyst reports. Zacks Research downgraded shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 24th. Oppenheimer raised their target price on shares of Allison Transmission from $115.00 to $135.00 and gave the company an "outperform" rating in a research note on Tuesday, February 24th. Weiss Ratings downgraded shares of Allison Transmission from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday. Morgan Stanley raised their target price on shares of Allison Transmission from $117.00 to $126.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 13th. Finally, Wells Fargo & Company raised their target price on shares of Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. One analyst has 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 stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $116.50.

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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