Allison Transmission (NYSE:ALSN) Rating Increased to Buy at Wall Street Zen

Allison Transmission (NYSE:ALSN) was upgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday.

A number of other research firms also recently commented on ALSN. Robert W. Baird lowered their target price on Allison Transmission from $123.00 to $100.00 and set a “neutral” rating for the company in a research report on Tuesday, April 15th. Morgan Stanley raised their price target on Allison Transmission from $94.00 to $100.00 and gave the stock an “equal weight” rating in a research report on Tuesday, May 6th. JPMorgan Chase & Co. lowered their price target on Allison Transmission from $110.00 to $98.00 and set a “neutral” rating for the company in a research report on Friday, April 11th. The Goldman Sachs Group raised their price target on Allison Transmission from $80.00 to $90.00 and gave the stock a “sell” rating in a research report on Tuesday, May 27th. Finally, Citigroup lowered their price target on Allison Transmission from $108.00 to $95.00 and set a “neutral” rating for the company in a research report on Tuesday, April 8th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $98.13.

Allison Transmission Trading Down 2.9%

ALSN stock opened at $98.72 on Friday. Allison Transmission has a 1-year low of $71.49 and a 1-year high of $122.53. 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 company has a market capitalization of $8.32 billion, a price-to-earnings ratio of 11.88 and a beta of 1.00. The business has a 50 day simple moving average of $97.30 and a two-hundred day simple moving average of $104.00.

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

Allison Transmission declared that its Board of Directors has approved a stock repurchase plan on Thursday, February 20th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the auto parts company to reacquire up to 57.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other news, SVP John Coll sold 1,788 shares of the firm’s stock in a transaction on Tuesday, April 1st. The stock was sold at an average price of $95.33, for a total transaction of $170,450.04. Following the transaction, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Ryan A. Milburn sold 3,412 shares of the firm’s stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total value of $359,078.88. Following the sale, the vice president now directly owns 11,924 shares in the company, valued at approximately $1,254,881.76. The trade was 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 institutional investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC boosted its holdings in Allison Transmission by 18.8% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 293,753 shares of the auto parts company’s stock worth $31,643,000 after acquiring an additional 46,435 shares in the last quarter. Asset Management One Co. Ltd. acquired a new stake in Allison Transmission in the fourth quarter worth about $1,140,000. Principal Securities Inc. boosted its holdings in Allison Transmission by 7.1% in the fourth quarter. Principal Securities Inc. now owns 1,939 shares of the auto parts company’s stock worth $210,000 after acquiring an additional 129 shares in the last quarter. CIBC Asset Management Inc boosted its holdings in Allison Transmission by 5.4% in the fourth quarter. CIBC Asset Management Inc now owns 2,679 shares of the auto parts company’s stock worth $289,000 after acquiring an additional 137 shares in the last quarter. Finally, Truist Financial Corp boosted its holdings in Allison Transmission by 20.6% in the fourth quarter. Truist Financial Corp now owns 12,368 shares of the auto parts company’s stock worth $1,337,000 after acquiring an additional 2,110 shares in the last quarter. Institutional investors own 96.90% of the company’s stock.

Allison Transmission Company Profile

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.