Islay Capital Management LLC Acquires New Stake in Allison Transmission Holdings, Inc. (NYSE:ALSN)

Islay Capital Management LLC bought a new stake in Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 10,947 shares of the auto parts company's stock, valued at approximately $637,000.

A number of other large investors have also modified their holdings of the company. Federated Hermes Inc. raised its stake in Allison Transmission by 62.5% during the third quarter. Federated Hermes Inc. now owns 799,312 shares of the auto parts company's stock worth $47,207,000 after acquiring an additional 307,322 shares in the last quarter. Invesco Ltd. raised its stake in Allison Transmission by 17.8% during the third quarter. Invesco Ltd. now owns 1,477,554 shares of the auto parts company's stock worth $87,264,000 after acquiring an additional 222,863 shares in the last quarter. Lazard Asset Management LLC raised its stake in Allison Transmission by 104.0% during the third quarter. Lazard Asset Management LLC now owns 217,189 shares of the auto parts company's stock worth $12,827,000 after acquiring an additional 110,722 shares in the last quarter. Sheaff Brock Investment Advisors LLC acquired a new position in Allison Transmission during the third quarter worth $6,332,000. Finally, ClariVest Asset Management LLC raised its stake in Allison Transmission by 402,208.3% during the third quarter. ClariVest Asset Management LLC now owns 96,554 shares of the auto parts company's stock worth $5,702,000 after acquiring an additional 96,530 shares in the last quarter. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Allison Transmission Stock Down 3.3 %

Shares of NYSE:ALSN traded down $2.53 during trading on Tuesday, hitting $73.55. 1,039,766 shares of the company were exchanged, compared to its average volume of 692,273. The stock has a market cap of $6.44 billion, a price-to-earnings ratio of 9.81, a P/E/G ratio of 1.38 and a beta of 1.03. Allison Transmission Holdings, Inc. has a fifty-two week low of $45.36 and a fifty-two week high of $83.42. The firm has a fifty day moving average price of $77.94 and a two-hundred day moving average price of $64.51. The company has a current ratio of 2.49, a quick ratio of 1.94 and a debt-to-equity ratio of 2.03.

Allison Transmission (NYSE:ALSN - Get Free Report) last issued its earnings results on Thursday, April 25th. The auto parts company reported $1.90 EPS for the quarter, topping the consensus estimate of $1.89 by $0.01. Allison Transmission had a return on equity of 58.05% and a net margin of 21.80%. The company had revenue of $789.00 million during the quarter, compared to the consensus estimate of $772.37 million. During the same period in the previous year, the company posted $1.85 EPS. The firm's revenue for the quarter was up 6.5% compared to the same quarter last year. As a group, research analysts anticipate that Allison Transmission Holdings, Inc. will post 7.71 earnings per share for the current fiscal year.

Allison Transmission Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 15th. Investors of record on Monday, March 4th were paid a $0.25 dividend. The ex-dividend date was Friday, March 1st. This is an increase from Allison Transmission's previous quarterly dividend of $0.23. This represents a $1.00 annualized dividend and a yield of 1.36%. Allison Transmission's payout ratio is 13.35%.

Insider Activity at Allison Transmission

In related news, VP Ryan A. Milburn sold 2,598 shares of the business's stock in a transaction on Monday, March 4th. The stock was sold at an average price of $75.40, for a total value of $195,889.20. Following the completion of the sale, the vice president now directly owns 14,456 shares in the company, valued at approximately $1,089,982.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, VP Ryan A. Milburn sold 2,598 shares of the company's stock in a transaction on Monday, March 4th. The stock was sold at an average price of $75.40, for a total transaction of $195,889.20. Following the completion of the sale, the vice president now directly owns 14,456 shares in the company, valued at approximately $1,089,982.40. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO David S. Graziosi sold 76,318 shares of the company's stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $70.57, for a total value of $5,385,761.26. Following the sale, the chief executive officer now owns 125,479 shares of the company's stock, valued at $8,855,053.03. The disclosure for this sale can be found here. Insiders sold 87,843 shares of company stock worth $6,244,562 in the last ninety days. 0.93% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on ALSN shares. JPMorgan Chase & Co. raised their target price on Allison Transmission from $70.00 to $78.00 and gave the company a "neutral" rating in a research note on Monday, April 15th. The Goldman Sachs Group raised their target price on Allison Transmission from $55.00 to $63.00 and gave the stock a "sell" rating in a report on Tuesday, April 16th. Oppenheimer raised their target price on Allison Transmission from $67.00 to $90.00 and gave the stock an "outperform" rating in a report on Tuesday, March 26th. StockNews.com cut Allison Transmission from a "strong-buy" rating to a "buy" rating in a report on Friday. Finally, Robert W. Baird raised their target price on Allison Transmission from $84.00 to $87.00 and gave the stock a "neutral" rating in a report on Friday. One research analyst has rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat.com, Allison Transmission currently has an average rating of "Hold" and a consensus price target of $71.71.

Allison Transmission Profile

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.