The Goldman Sachs Group Forecasts Strong Price Appreciation for Allison Transmission (NYSE:ALSN) Stock

Allison Transmission (NYSE:ALSN - Get Free Report) had its price target hoisted by stock analysts at The Goldman Sachs Group from $80.00 to $90.00 in a report issued on Tuesday,Benzinga reports. The brokerage presently has a "sell" rating on the auto parts company's stock. The Goldman Sachs Group's target price indicates a potential downside of 13.99% from the company's current price.

ALSN has been the subject of a number of other research reports. Morgan Stanley boosted their price target on shares of Allison Transmission from $94.00 to $100.00 and gave the stock an "equal weight" rating in a research note on Tuesday, May 6th. Robert W. Baird reduced their target price on Allison Transmission from $123.00 to $100.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 15th. Wall Street Zen upgraded Allison Transmission from a "hold" rating to a "buy" rating in a research report on Monday, May 12th. JPMorgan Chase & Co. cut their price objective on Allison Transmission from $110.00 to $98.00 and set a "neutral" rating for the company in a report on Friday, April 11th. Finally, Raymond James decreased their price objective on Allison Transmission from $115.00 to $110.00 and set an "outperform" rating on the stock in a report on Monday, April 14th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and three have given a buy rating to the stock. According to MarketBeat, Allison Transmission currently has a consensus rating of "Hold" and an average target price of $98.13.

Allison Transmission Price Performance

Shares of ALSN stock traded up $0.40 on Tuesday, reaching $104.64. The company's stock had a trading volume of 636,288 shares, compared to its average volume of 642,696. The company has a market capitalization of $8.82 billion, a P/E ratio of 12.59 and a beta of 0.97. Allison Transmission has a 12-month low of $71.49 and a 12-month high of $122.53. The stock's 50 day simple moving average is $95.76 and its 200-day simple moving average is $105.05. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its earnings results on Thursday, May 1st. The auto parts company reported $2.23 earnings per share for the quarter, topping analysts' consensus estimates of $1.97 by $0.26. The business had revenue of $766.00 million for the quarter, compared to analyst estimates of $792.18 million. Allison Transmission had a return on equity of 47.95% and a net margin of 22.67%. The company's quarterly revenue was down 2.9% compared to the same quarter last year. During the same period in the prior year, the company earned $1.90 EPS. As a group, equities analysts predict that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Allison Transmission announced that its board has approved a share buyback plan on Thursday, February 20th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the auto parts company to repurchase up to 57.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Allison Transmission

In related news, VP Ryan A. Milburn sold 3,412 shares of the firm's stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $105.24, for a total value of $359,078.88. Following the completion of the sale, the vice president now owns 11,924 shares of the company's stock, valued at $1,254,881.76. This trade represents a 22.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP John Coll sold 1,788 shares of Allison Transmission stock in a transaction on Tuesday, April 1st. The shares were sold at an average price of $95.33, for a total transaction of $170,450.04. Following the completion of the sale, the senior vice president now owns 15,388 shares in the company, valued at approximately $1,466,938.04. This trade represents a 10.41% decrease in their position. The disclosure for this sale can be found here. Insiders sold 9,746 shares of company stock valued at $966,854 in the last quarter. Company insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ALSN. Arizona State Retirement System increased its position in shares of Allison Transmission by 0.4% during the fourth quarter. Arizona State Retirement System now owns 25,289 shares of the auto parts company's stock valued at $2,733,000 after buying an additional 100 shares during the period. Vident Advisory LLC boosted its position in Allison Transmission by 1.0% during the 4th quarter. Vident Advisory LLC now owns 10,182 shares of the auto parts company's stock valued at $1,100,000 after acquiring an additional 102 shares in the last quarter. Amalgamated Bank grew its holdings in shares of Allison Transmission by 1.6% during the 4th quarter. Amalgamated Bank now owns 6,381 shares of the auto parts company's stock worth $690,000 after acquiring an additional 103 shares during the period. Compound Planning Inc. raised its position in shares of Allison Transmission by 5.3% in the 1st quarter. Compound Planning Inc. now owns 2,180 shares of the auto parts company's stock worth $209,000 after acquiring an additional 109 shares in the last quarter. Finally, Callan Family Office LLC lifted its stake in shares of Allison Transmission by 5.1% in the 1st quarter. Callan Family Office LLC now owns 2,606 shares of the auto parts company's stock valued at $249,000 after purchasing an additional 126 shares during the period. 96.90% of the stock is currently owned by institutional investors.

About Allison Transmission

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.