Allison Transmission (NYSE:ALSN) Stock Crosses Above Two Hundred Day Moving Average - What's Next?

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $118.37 and traded as high as $123.12. Allison Transmission shares last traded at $118.9990, with a volume of 1,958,312 shares changing hands.

Trending Headlines about Allison Transmission

Here are the key news stories impacting Allison Transmission this week:

• Positive Sentiment: Third-quarter revenue was $1.534 billion, up 121% year over year and above the roughly $1.47 billion expected. Adjusted diluted EPS of $2.90 also beat estimates, while the core Allison Transmission business posted record sales of $881 million, up 27%. Allison Announces Third Quarter 2026 Results
• Positive Sentiment: Management raised 2026 revenue, earnings, and cash-flow guidance for a second consecutive quarter. Revenue is now forecast at $6.0 billion–$6.1 billion, above the approximately $5.9 billion consensus. The company also cited more than $120 million in expected 2027 synergies and supportive volume, cost, and defense trends. Allison raises 2026 guidance
• Negative Sentiment: Margins declined as the acquired off-highway segment carries lower profitability, a headwind that could temper the benefit of rapid sales growth. Allison nevertheless generated $343 million in operating cash flow and reported a 26.1% adjusted EBITDA margin. Allison Transmission Q3 Review

Analyst Upgrades and Downgrades

ALSN has been the topic of several analyst reports. JPMorgan Chase & Co. lowered their price objective on Allison Transmission from $145.00 to $142.00 and set a "neutral" rating on the stock in a research note on Thursday, October 8th. 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 research note on Friday, July 17th. Freedom Broker started coverage on Allison Transmission in a research report on Friday, October 2nd. They issued a "buy" rating and a $144.00 price target on the stock. Citigroup upgraded Allison Transmission from a "neutral" rating to a "buy" rating and set a $135.00 price target on the stock in a research report on Monday, October 12th. Finally, Wells Fargo & Company dropped their price objective on Allison Transmission from $137.00 to $120.00 and set an "equal weight" rating for the company in a research note on Thursday, October 8th. Two analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $131.57.

Allison Transmission Price Performance

The firm has a market capitalization of $9.83 billion, a price-to-earnings ratio of 17.10, a price-to-earnings-growth ratio of 0.60 and a beta of 1.06. The company has a quick ratio of 1.17, a current ratio of 1.81 and a debt-to-equity ratio of 2.07. The company's fifty day moving average is $117.12 and its two-hundred day moving average is $118.37.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Monday, November 2nd. The auto parts company reported $2.90 EPS for the quarter, topping analysts' consensus estimates of $2.32 by $0.58. Allison Transmission had a net margin of 11.12% and a return on equity of 43.23%. The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.47 billion. During the same quarter in the previous year, the business earned $1.63 EPS. The business's quarterly revenue was up 121.4% compared to the same quarter last year. Equities research analysts anticipate that Allison Transmission Holdings, Inc. will post 10.25 earnings per share for the current fiscal year.

Allison Transmission Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Friday, August 21st were paid a $0.29 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.0%. Allison Transmission's dividend payout ratio is 18.44%.

Insider Buying and Selling

In other Allison Transmission news, CEO David S. Graziosi sold 26,708 shares of the company's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $132.97, for a total value of $3,551,362.76. Following the completion of the sale, the chief executive officer owned 304,843 shares of the company's stock, valued at approximately $40,534,973.71. This represents a 8.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Eric C. Scroggins sold 1,050 shares of the stock in a transaction 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 completion of the sale, the insider owned 16,604 shares in the company, valued at approximately $2,075,500. This trade represents a 5.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.10% of the company's stock.

Institutional Trading of Allison Transmission

A number of large investors have recently made changes to their positions in ALSN. Bank of America Corp DE bought a new position in shares of Allison Transmission in the second quarter worth $83,110,000. MAC Alpha Capital Management LP boosted its stake in Allison Transmission by 59.4% during the second quarter. MAC Alpha Capital Management LP now owns 156,191 shares of the auto parts company's stock valued at $17,610,000 after buying an additional 58,208 shares during the period. Vise Technologies Inc. purchased a new position in Allison Transmission during the second quarter worth about $1,047,000. BlackRock Inc. purchased a new position in Allison Transmission during the second quarter worth about $448,232,000. Finally, Man Group plc purchased a new position in Allison Transmission during the second quarter worth about $5,386,000. Institutional investors own 96.90% of the company's stock.

About Allison Transmission

Allison Transmission, Inc designs and manufactures propulsion solutions for commercial, defense and off-highway vehicles. The company is best known for its fully automatic transmissions, which are used in applications including refuse collection, construction, distribution, emergency services, public transportation and mining.

Its product portfolio also includes electric and hybrid-electric propulsion systems, including the eGen Power electric axle and other electrification technologies.

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