Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Consensus Recommendation of “Reduce” from Analysts

Allison Transmission Holdings, Inc. (NYSE:ALSN) has been assigned a consensus recommendation of “Reduce” from the nine research firms that are covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, six have assigned a hold recommendation and one has given a buy recommendation to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $93.00.

A number of analysts recently issued reports on the company. Raymond James Financial decreased their price objective on Allison Transmission from $110.00 to $105.00 and set an “outperform” rating on the stock in a research note on Monday, July 21st. Zacks Research raised Allison Transmission from a “strong sell” rating to a “hold” rating in a report on Friday, September 19th. Citigroup lowered their price target on shares of Allison Transmission from $95.00 to $90.00 and set a “neutral” rating on the stock in a report on Friday, October 31st. Weiss Ratings lowered shares of Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 24th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Allison Transmission from $90.00 to $87.00 and set a “neutral” rating on the stock in a report on Thursday, October 30th.

Allison Transmission Stock Performance

Shares of ALSN stock opened at $81.97 on Friday. The firm’s 50 day moving average is $84.81 and its 200 day moving average is $91.13. The stock has a market capitalization of $6.82 billion, a P/E ratio of 10.04 and a beta of 1.02. Allison Transmission has a 12 month low of $76.01 and a 12 month high of $122.53. 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) last released its quarterly earnings data on Wednesday, October 29th. The auto parts company reported $1.63 earnings per share for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.32). The business had revenue of $693.00 million during the quarter, compared to analysts’ expectations of $779.97 million. Allison Transmission had a net margin of 22.78% and a return on equity of 41.37%. The firm’s quarterly revenue was down 15.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.27 earnings per share. Allison Transmission has set its FY 2025 guidance at EPS. On average, sell-side analysts anticipate that Allison Transmission will post 9.06 earnings per share for the current year.

Institutional Investors Weigh In On Allison Transmission

Several large investors have recently added to or reduced their stakes in ALSN. AQR Capital Management LLC raised its holdings in shares of Allison Transmission by 18.9% in the 2nd quarter. AQR Capital Management LLC now owns 1,915,887 shares of the auto parts company’s stock valued at $181,741,000 after acquiring an additional 304,974 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of 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 last quarter. State Street Corp raised its stake 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 valued at $156,951,000 after purchasing an additional 17,783 shares in the last quarter. Federated Hermes Inc. lifted its position in Allison Transmission by 35.7% during 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 purchasing an additional 406,540 shares during the last quarter. Finally, Invesco Ltd. grew its stake in Allison Transmission by 6.8% in the 1st quarter. Invesco Ltd. now owns 1,262,619 shares of the auto parts company’s stock worth $120,795,000 after buying an additional 80,653 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.