Allison Transmission Holdings, Inc. (NYSE:ALSN) Given Consensus Rating of “Hold” by Brokerages

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) have been assigned an average recommendation of “Hold” from the eight brokerages that are presently covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $98.13.

ALSN has been the subject of a number of research analyst reports. Citigroup reduced their price objective on shares of Allison Transmission from $108.00 to $95.00 and set a “neutral” rating for the company in a research report on Tuesday, April 8th. Morgan Stanley upped their price objective on shares of Allison Transmission from $94.00 to $100.00 and gave the stock an “equal weight” rating in a research report on Tuesday, May 6th. Wall Street Zen upgraded shares of Allison Transmission from a “hold” rating to a “buy” rating in a research report on Monday, May 12th. Raymond James reduced their price objective on shares of Allison Transmission from $115.00 to $110.00 and set an “outperform” rating for the company in a research report on Monday, April 14th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Allison Transmission from $110.00 to $98.00 and set a “neutral” rating for the company in a research report on Friday, April 11th.

Allison Transmission Stock Performance

ALSN opened at $101.58 on Wednesday. The company has a debt-to-equity ratio of 1.45, a current ratio of 3.04 and a quick ratio of 2.42. The firm has a fifty day moving average price of $96.41 and a 200 day moving average price of $104.15. Allison Transmission has a 1 year low of $71.49 and a 1 year high of $122.53. The stock has a market cap of $8.56 billion, a P/E ratio of 12.22 and a beta of 1.00.

Allison Transmission (NYSE:ALSN) last posted its earnings results on Thursday, May 1st. The auto parts company reported $2.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.97 by $0.26. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. The firm had revenue of $766.00 million during the quarter, compared to analysts’ expectations of $792.18 million. During the same period in the previous year, the business posted $1.90 EPS. The business’s revenue was down 2.9% compared to the same quarter last year. Equities research analysts anticipate that Allison Transmission will post 9.06 earnings per share for the current year.

Allison Transmission announced that its board has initiated a share buyback program on Thursday, February 20th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the auto parts company to reacquire up to 57.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Allison Transmission Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Monday, May 19th were issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.06%. The ex-dividend date was Monday, May 19th. Allison Transmission’s payout ratio is 12.50%.

Insider Transactions at Allison Transmission

In related news, SVP John Coll sold 1,788 shares of the company’s stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $95.33, for a total value of $170,450.04. Following the completion of the sale, the senior vice president now owns 15,388 shares of the company’s stock, valued at approximately $1,466,938.04. This represents a 10.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Ryan A. Milburn sold 3,412 shares of the company’s stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total transaction of $359,078.88. Following the completion of the sale, the vice president now directly owns 11,924 shares of the company’s stock, valued at $1,254,881.76. This represents a 22.25% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Allison Transmission

A number of hedge funds have recently modified their holdings of the company. Arizona State Retirement System grew its holdings in shares of Allison Transmission by 0.4% in 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 purchasing an additional 100 shares during the period. Vident Advisory LLC boosted its stake in Allison Transmission by 1.0% during the fourth quarter. Vident Advisory LLC now owns 10,182 shares of the auto parts company’s stock worth $1,100,000 after buying an additional 102 shares during the period. Amalgamated Bank boosted its stake in Allison Transmission by 1.6% during the fourth quarter. Amalgamated Bank now owns 6,381 shares of the auto parts company’s stock worth $690,000 after buying an additional 103 shares during the period. Compound Planning Inc. boosted its stake in Allison Transmission by 5.3% during the first quarter. Compound Planning Inc. now owns 2,180 shares of the auto parts company’s stock worth $209,000 after buying an additional 109 shares during the period. Finally, Callan Family Office LLC boosted its stake in Allison Transmission by 5.1% during the first quarter. Callan Family Office LLC now owns 2,606 shares of the auto parts company’s stock worth $249,000 after buying an additional 126 shares during the period. Hedge funds and other institutional investors 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.