JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Allison Transmission (NYSE:ALSN) Stock

Key Points

• JPMorgan Chase & Co. raised its price target on Allison Transmission to $145 from $140, while keeping a neutral rating. The new target implies about 25.7% upside from the prior close.
• Analyst sentiment remains mixed but generally constructive: the stock has a consensus Moderate Buy rating with an average target price of $132.17, and recent moves include rating upgrades from Weiss Ratings and target increases from several firms.
• Allison Transmission reported better-than-expected quarterly results, with EPS of $2.57 versus $2.10 expected and revenue of $1.41 billion versus $1.38 billion expected. The stock was trading around $115.33, near its 50-day and 200-day averages.

Allison Transmission (NYSE:ALSN - Get Free Report) had its price objective lifted by research analysts at JPMorgan Chase & Co. from $140.00 to $145.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has a "neutral" rating on the auto parts company's stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 25.73% from the stock's previous close.

A number of other research firms have also weighed in on ALSN. Zacks Research lowered shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. Citigroup boosted their target price on Allison Transmission from $130.00 to $135.00 and gave the company a "neutral" rating in a research report on Monday, April 13th. Wells Fargo & Company upped their target price on Allison Transmission from $127.00 to $137.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Morgan Stanley increased their price target on Allison Transmission from $117.00 to $126.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 13th. Finally, Weiss Ratings raised Allison Transmission from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 2nd. One equities 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's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $132.17.

Allison Transmission Trading Up 1.0%

ALSN traded up $1.12 during trading on Monday, reaching $115.33. The company had a trading volume of 127,741 shares, compared to its average volume of 994,490. 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 business has a 50 day simple moving average of $117.35 and a 200-day simple moving average of $116.14. The stock has a market cap of $9.57 billion, a P/E ratio of 17.94, a PEG ratio of 0.62 and a beta of 0.95. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $137.62.

Allison Transmission (NYSE:ALSN - Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The auto parts company reported $2.57 earnings per share for the quarter, beating analysts' consensus estimates of $2.10 by $0.47. The business had revenue of $1.41 billion for the quarter, compared to analysts' expectations of $1.38 billion. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. The business's revenue was up 83.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.23 earnings per share. On average, equities analysts anticipate that Allison Transmission will post 9.86 EPS for the current fiscal year.

Insider Activity at Allison Transmission

In other news, CFO Scott A. Mell sold 2,270 shares of the firm's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $125.00, for a total transaction of $283,750.00. Following the transaction, the chief financial officer owned 1,053 shares in the company, valued at approximately $131,625. This trade represents a 68.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALSN. Millstone Evans Group LLC purchased a new position in Allison Transmission during the 1st quarter valued at about $26,000. Cedar Mountain Advisors LLC purchased a new stake in shares of Allison Transmission in the 1st quarter worth approximately $27,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Allison Transmission in the 1st quarter worth approximately $28,000. Larson Financial Group LLC boosted its stake in shares of Allison Transmission by 536.7% during the fourth quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 263 shares in the last quarter. Finally, Transamerica Financial Advisors LLC boosted its stake in shares of Allison Transmission by 2,112.5% during the fourth quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company's stock valued at $35,000 after purchasing an additional 338 shares in the last quarter. 96.90% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.