Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Consensus Rating of “Moderate Buy” from Analysts

Allison Transmission Holdings, Inc. (NYSE:ALSN) has been given a consensus recommendation of “Moderate Buy” by the nine analysts that are currently covering the company, MarketBeat reports. Five investment analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $133.00.

Several research firms recently commented on ALSN. JPMorgan Chase & Co. increased their price target on Allison Transmission from $140.00 to $145.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Freedom Broker initiated coverage on Allison Transmission in a report on Friday. They issued a “buy” rating and a $144.00 target price for the company. Morgan Stanley raised their target price on Allison Transmission from $126.00 to $130.00 and gave the stock an “equal weight” rating in a research note on Friday, July 17th. Citigroup lowered their price target on shares of Allison Transmission from $135.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 14th. Finally, Weiss Ratings raised shares of Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, August 11th.

Allison Transmission Stock Up 1.5%

Shares of NYSE ALSN opened at $118.01 on Tuesday. Allison Transmission has a 52-week low of $76.01 and a 52-week high of $137.62. The company’s 50-day simple moving average is $122.44 and its 200-day simple moving average is $120.25. 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 firm has a market cap of $9.75 billion, a price-to-earnings ratio of 18.76, a price-to-earnings-growth ratio of 0.62 and a beta of 0.98.

Allison Transmission (NYSE:ALSN) last posted its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 earnings per share for the quarter, topping the consensus estimate of $2.48 by $0.25. The firm had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.50 billion. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The company’s revenue for the quarter was up 92.4% on a year-over-year basis. During the same period last year, the firm posted $2.29 earnings per share. Equities analysts predict that Allison Transmission will post 10.27 EPS for the current fiscal year.

Allison Transmission Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Friday, August 21st were issued a $0.29 dividend. The ex-dividend date was Friday, August 21st. This represents a $1.16 dividend on an annualized basis and a yield of 1.0%. Allison Transmission’s dividend payout ratio is currently 18.44%.

Insider Activity at Allison Transmission

In related news, CEO David Graziosi sold 26,708 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $132.97, for a total value of $3,551,362.76. Following the completion of the transaction, the chief executive officer directly owned 304,843 shares in the company, 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 legal filing with the SEC, which is accessible through this link. Also, insider Eric Scroggins sold 1,050 shares of the firm’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total value of $131,250.00. Following the sale, the insider directly owned 16,604 shares of the company’s stock, valued at approximately $2,075,500. This trade represents a 5.95% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of Allison Transmission

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE purchased a new position in shares of Allison Transmission in the second quarter valued at approximately $83,110,000. MAC Alpha Capital Management LP increased its stake in Allison Transmission by 59.4% during the 2nd quarter. MAC Alpha Capital Management LP now owns 156,191 shares of the auto parts company’s stock worth $17,610,000 after buying an additional 58,208 shares during the period. Vise Technologies Inc. purchased a new stake in Allison Transmission during the 2nd quarter worth approximately $1,047,000. BlackRock Inc. purchased a new stake in shares of Allison Transmission during the second quarter worth $448,232,000. Finally, Natixis Advisors LLC raised its stake in shares of Allison Transmission by 5.3% in the fourth quarter. Natixis Advisors LLC now owns 285,022 shares of the auto parts company’s stock valued at $27,903,000 after acquiring an additional 14,445 shares in the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc designs and manufactures fully automatic transmissions and propulsion solutions for commercial and defense vehicles. Its products are used in a broad range of applications, including refuse and construction trucks, buses, distribution vehicles, emergency vehicles, motorhomes, and off-highway equipment.

The company’s portfolio includes conventional automatic transmissions, hybrid-electric propulsion systems, and electric axles and other solutions intended to support vehicle electrification.