Allison Transmission (NYSE:ALSN) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research has downgraded Allison Transmission from a "hold" rating to a "strong sell" rating, reflecting concerns about the company's performance.
• The stock's price objective has been adjusted by several analysts, with Citigroup lowering it from $105.00 to $100.00 while Goldman Sachs raised its target from $80.00 to $90.00, indicating mixed analyst sentiment.
• Allison Transmission reported a quarterly EPS of $2.29, beating estimates, but its revenue declined by 0.2% year-over-year, raising questions about future growth.

Zacks Research cut shares of Allison Transmission (NYSE:ALSN - Free Report) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday, August 19th,Zacks.com reports.

Other equities analysts have also recently issued research reports about the stock. Raymond James Financial dropped their price objective on shares of Allison Transmission from $110.00 to $105.00 and set an "outperform" rating for the company in a research note on Monday, July 21st. Wall Street Zen cut shares of Allison Transmission from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Bank of America increased their price objective on shares of Allison Transmission from $74.00 to $79.00 and gave the company an "underperform" rating in a research note on Monday, June 16th. The Goldman Sachs Group increased their price objective on shares of Allison Transmission from $80.00 to $90.00 and gave the company a "sell" rating in a research note on Tuesday, May 27th. Finally, Morgan Stanley increased their price objective on shares of Allison Transmission from $94.00 to $100.00 and gave the company an "equal weight" rating in a research note on Tuesday, May 6th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Allison Transmission has a consensus rating of "Reduce" and a consensus target price of $98.38.

Allison Transmission Stock Performance

NYSE:ALSN traded up $0.39 during trading hours on Tuesday, hitting $88.75. 140,890 shares of the company traded hands, compared to its average volume of 803,837. The stock has a market capitalization of $7.42 billion, a price-to-earnings ratio of 10.09 and a beta of 0.97. Allison Transmission has a twelve month low of $80.39 and a twelve month high of $122.53. The firm has a 50-day moving average of $90.57 and a 200 day moving average of $95.40. The company has a current ratio of 3.36, a quick ratio of 2.64 and a debt-to-equity ratio of 1.37.

Allison Transmission (NYSE:ALSN - Get Free Report) last released its earnings results on Monday, August 4th. The auto parts company reported $2.29 EPS for the quarter, beating the consensus estimate of $2.20 by $0.09. The firm had revenue of $814.00 million during the quarter, compared to analysts' expectations of $811.05 million. Allison Transmission had a net margin of 23.81% and a return on equity of 45.56%. The business's quarterly revenue was down .2% compared to the same quarter last year. During the same period in the prior year, the company earned $2.13 EPS. Allison Transmission has set its FY 2025 guidance at EPS. On average, analysts forecast that Allison Transmission will post 9.06 EPS for the current year.

Allison Transmission Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Wednesday, August 20th will be issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Wednesday, August 20th. Allison Transmission's payout ratio is currently 12.27%.

Institutional Trading of Allison Transmission

A number of institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC boosted its stake in Allison Transmission by 18.9% during the 2nd quarter. AQR Capital Management LLC now owns 1,915,887 shares of the auto parts company's stock worth $181,741,000 after acquiring an additional 304,974 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Allison Transmission by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,867,799 shares of the auto parts company's stock worth $178,686,000 after purchasing an additional 10,208 shares during the period. State Street Corp raised its holdings in Allison Transmission by 1.1% in the second quarter. State Street Corp now owns 1,652,290 shares of the auto parts company's stock worth $156,951,000 after purchasing an additional 17,783 shares during the period. Federated Hermes Inc. boosted its holdings in shares of Allison Transmission by 35.7% in the second quarter. Federated Hermes Inc. now owns 1,544,799 shares of the auto parts company's stock valued at $146,740,000 after buying an additional 406,540 shares during the period. Finally, Invesco Ltd. lifted its position in shares of Allison Transmission by 6.8% in the first quarter. Invesco Ltd. now owns 1,262,619 shares of the auto parts company's stock worth $120,795,000 after purchasing an additional 80,653 shares in the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

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.