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

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) have been assigned an average rating of “Reduce” from the ten brokerages that are covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $92.00.

A number of analysts have recently issued reports on the company. Citigroup dropped their target price on Allison Transmission from $95.00 to $90.00 and set a “neutral” rating on the stock in a research report on Friday, October 31st. Weiss Ratings downgraded Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, October 24th. JPMorgan Chase & Co. cut their target price on Allison Transmission from $90.00 to $87.00 and set a “neutral” rating on the stock in a research report on Thursday, October 30th. Wells Fargo & Company assumed coverage on shares of Allison Transmission in a research report on Thursday, November 13th. They set an “equal weight” rating and a $85.00 price target for the company. Finally, Zacks Research raised shares of Allison Transmission from a “strong sell” rating to a “hold” rating in a report on Friday, September 19th.

Allison Transmission Price Performance

Shares of ALSN stock opened at $89.29 on Wednesday. The firm has a fifty day simple moving average of $83.46 and a 200-day simple moving average of $89.54. The company has a market capitalization of $7.43 billion, a PE ratio of 10.94 and a beta of 0.99. Allison Transmission has a twelve month low of $76.01 and a twelve month high of $121.81. The company has a current ratio of 3.82, a quick ratio of 3.06 and a debt-to-equity ratio of 1.30.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings results on Wednesday, October 29th. The auto parts company reported $1.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.32). The firm had revenue of $693.00 million for the quarter, compared to analysts’ expectations of $779.97 million. Allison Transmission had a return on equity of 40.46% and a net margin of 22.78%.The business’s quarterly revenue was down 15.9% on a year-over-year basis. During the same period last year, the firm earned $2.27 EPS. Equities research analysts anticipate that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Allison Transmission Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 5th. Stockholders of record on Friday, November 21st will be paid a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, November 21st. Allison Transmission’s dividend payout ratio is 13.24%.

Hedge Funds Weigh In On Allison Transmission

Hedge funds have recently bought and sold shares of the company. Boston Partners raised its stake in Allison Transmission by 117.6% during the third quarter. Boston Partners now owns 2,038,429 shares of the auto parts company’s stock valued at $173,093,000 after buying an additional 1,101,824 shares in the last quarter. Norges Bank bought a new stake in shares of Allison Transmission in the 2nd quarter valued at approximately $100,347,000. Qube Research & Technologies Ltd raised its position in shares of Allison Transmission by 128.2% during the 2nd quarter. Qube Research & Technologies Ltd now owns 1,215,897 shares of the auto parts company’s stock valued at $115,498,000 after acquiring an additional 683,035 shares in the last quarter. UBS Group AG lifted its stake in Allison Transmission by 222.2% during the third quarter. UBS Group AG now owns 960,548 shares of the auto parts company’s stock worth $81,531,000 after purchasing an additional 662,458 shares during the last quarter. Finally, Caisse DE Depot ET Placement DU Quebec lifted its stake in Allison Transmission by 109.1% during the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 929,434 shares of the auto parts company’s stock worth $88,919,000 after purchasing an additional 484,916 shares during the last quarter. 96.90% of the stock is currently owned by institutional investors and hedge funds.

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.