The Manufacturers Life Insurance Company Makes New $35.52 Million Investment in Allison Transmission Holdings, Inc. $ALSN

Key Points

• The Manufacturers Life Insurance Company purchased 315,091 shares of Allison Transmission worth approximately $35.5 million, acquiring a 0.38% stake. Institutional investors collectively own 96.9% of the company.
• Allison Transmission reported quarterly EPS of $2.73, beating estimates by $0.25, while revenue rose 92.4% year over year to $1.57 billion. The company also declared a quarterly dividend of $0.29 per share.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $131.17; ALSN recently traded at $128.73.

The Manufacturers Life Insurance Company purchased a new stake in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm purchased 315,091 shares of the auto parts company's stock, valued at approximately $35,523,000. The Manufacturers Life Insurance Company owned about 0.38% of Allison Transmission at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of ALSN. BlackRock Inc. bought a new stake in shares of Allison Transmission in the 2nd quarter valued at about $448,232,000. Bank of Montreal Can increased its position in Allison Transmission by 4,032.3% during the fourth quarter. Bank of Montreal Can now owns 2,151,871 shares of the auto parts company's stock worth $210,668,000 after buying an additional 2,099,797 shares during the last quarter. Stockbridge Partners LLC acquired a new position in Allison Transmission during the second quarter worth approximately $169,108,000. Norges Bank bought a new stake in Allison Transmission in the fourth quarter valued at approximately $115,674,000. Finally, Boston Partners raised its stake in Allison Transmission by 117.6% in the third quarter. Boston Partners now owns 2,038,429 shares of the auto parts company's stock valued at $173,093,000 after buying an additional 1,101,824 shares during the period. Institutional investors own 96.90% of the company's stock.

Allison Transmission Price Performance

NYSE:ALSN opened at $128.73 on Thursday. Allison Transmission Holdings, Inc. has a 52 week low of $76.01 and a 52 week high of $137.62. 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's 50-day simple moving average is $119.78 and its 200 day simple moving average is $119.67. The firm has a market cap of $10.63 billion, a price-to-earnings ratio of 20.47, a P/E/G ratio of 0.71 and a beta of 0.95.

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

Allison Transmission Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, August 21st will be paid a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, August 21st. Allison Transmission's payout ratio is 18.44%.

Insider Activity at Allison Transmission

In related news, insider Eric C. Scroggins sold 1,050 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total transaction of $131,250.00. Following the sale, the insider owned 16,604 shares of the company's stock, valued at $2,075,500. This represents a 5.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO David S. Graziosi sold 26,708 shares of the firm's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $132.97, for a total value of $3,551,362.76. Following the transaction, the chief executive officer owned 304,843 shares in the company, valued at approximately $40,534,973.71. This trade represents a 8.06% 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

Several research analysts have recently commented on the company. Wells Fargo & Company lifted their target price on Allison Transmission from $127.00 to $137.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Morgan Stanley increased their price target on Allison Transmission from $126.00 to $130.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th. Citigroup cut their price target on Allison Transmission from $135.00 to $125.00 and set a "neutral" rating for the company in a report on Tuesday, July 14th. Weiss Ratings raised shares of Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Allison Transmission from $140.00 to $145.00 and gave the company a "neutral" rating in a report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $131.17.

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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