Wells Fargo & Company Boosts Allison Transmission (NYSE:ALSN) Price Target to $137.00

Key Points

• Wells Fargo raised its price target on Allison Transmission to $137 from $127 and kept an "equal weight" rating, implying roughly a 3.98% upside from the current price.
• Allison delivered a strong quarter with EPS of $2.57 (vs. $2.10 est.) and revenue of $1.41B (vs. $1.38B est.), up 83.6% year‑over‑year, and the stock traded up about 3.4% to $131.76.
• The analyst consensus remains an average "Hold" with an average price target of $115.38 (1 Strong Buy, 1 Buy, 6 Hold, 2 Sell), and institutional investors hold about 96.9% of the stock.

Allison Transmission (NYSE:ALSN - Get Free Report) had its price objective hoisted by investment analysts at Wells Fargo & Company from $127.00 to $137.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the auto parts company's stock. Wells Fargo & Company's price target points to a potential upside of 3.98% from the company's current price.

A number of other brokerages have also recently commented on ALSN. Oppenheimer lifted their target price on shares of Allison Transmission from $115.00 to $135.00 and gave the stock an "outperform" rating in a research report on Tuesday, February 24th. Zacks Research cut shares of Allison Transmission from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 24th. JPMorgan Chase & Co. lifted their target price on shares of Allison Transmission from $87.00 to $115.00 and gave the stock a "neutral" rating in a research report on Wednesday, January 14th. Morgan Stanley boosted their price objective on shares of Allison Transmission from $109.00 to $117.00 and gave the company an "equal weight" rating in a research report on Monday, March 16th. Finally, Citigroup boosted their price objective on shares of Allison Transmission from $130.00 to $135.00 and gave the company a "neutral" rating in a research report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Allison Transmission has an average rating of "Hold" and an average price target of $115.38.

Allison Transmission Trading Up 3.4%

NYSE:ALSN traded up $4.39 during trading hours on Wednesday, reaching $131.76. The company's stock had a trading volume of 94,124 shares, compared to its average volume of 860,600. The firm has a market capitalization of $10.95 billion, a price-to-earnings ratio of 20.46, a PEG ratio of 0.77 and a beta of 1.01. The firm has a 50-day simple moving average of $122.10 and a 200-day simple moving average of $106.13. Allison Transmission has a 1 year low of $76.01 and a 1 year high of $137.62. The company has a debt-to-equity ratio of 1.55, a quick ratio of 4.17 and a current ratio of 4.85.

Allison Transmission (NYSE:ALSN - Get Free Report) last issued its earnings results on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping analysts' consensus estimates of $2.10 by $0.47. The company 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 37.93%. The firm's revenue was up 83.6% compared to the same quarter last year. During the same quarter last year, the company earned $2.23 EPS. Research analysts expect that Allison Transmission will post 9.68 EPS for the current fiscal year.

Insider Activity

In other Allison Transmission news, insider Eric C. Scroggins sold 1,313 shares of the business's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $114.40, for a total value of $150,207.20. Following the transaction, the insider owned 17,654 shares in the company, valued at approximately $2,019,617.60. The trade was a 6.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On Allison Transmission

Large investors have recently modified their holdings of the stock. Chicago Partners Investment Group LLC bought a new stake in shares of Allison Transmission during the 3rd quarter valued at about $614,000. Caprock Group LLC boosted its stake in Allison Transmission by 191.5% during the fourth quarter. Caprock Group LLC now owns 26,051 shares of the auto parts company's stock worth $2,550,000 after acquiring an additional 17,114 shares in the last quarter. Alps Advisors Inc. bought a new stake in Allison Transmission during the third quarter worth about $14,175,000. Y Intercept Hong Kong Ltd boosted its stake in Allison Transmission by 224.5% during the third quarter. Y Intercept Hong Kong Ltd now owns 74,778 shares of the auto parts company's stock worth $6,347,000 after acquiring an additional 51,737 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in Allison Transmission by 6.5% during the third quarter. JPMorgan Chase & Co. now owns 377,739 shares of the auto parts company's stock worth $32,063,000 after acquiring an additional 23,025 shares in the last quarter. Institutional investors own 96.90% of the company's stock.

About Allison Transmission

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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