Morgan Stanley Forecasts Strong Price Appreciation for Allison Transmission (NYSE:ALSN) Stock

Allison Transmission (NYSE:ALSN) had its price target hoisted by analysts at Morgan Stanley from $126.00 to $130.00 in a report released on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the auto parts company’s stock. Morgan Stanley’s price objective indicates a potential upside of 14.61% from the company’s current price.

A number of other analysts also recently weighed in on the stock. Citigroup reduced their target price 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. Weiss Ratings raised shares of Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 2nd. Wells Fargo & Company boosted their price objective on shares of Allison Transmission from $127.00 to $137.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. upped their price objective on shares of Allison Transmission from $140.00 to $145.00 and gave the stock a “neutral” rating in a report on Monday, July 13th. Finally, Zacks Research lowered shares of Allison Transmission from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 24th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $131.17.

Allison Transmission Trading Down 1.8%

ALSN opened at $113.43 on Friday. The stock has a market cap of $9.41 billion, a PE ratio of 17.64, a PEG ratio of 0.62 and a beta of 0.95. The company has a quick ratio of 1.18, a current ratio of 1.85 and a debt-to-equity ratio of 2.23. The business has a 50 day moving average of $116.08 and a 200-day moving average of $116.52. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $137.62.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share for the quarter, topping the consensus estimate of $2.10 by $0.47. The company had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.38 billion. Allison Transmission had a return on equity of 37.50% and a net margin of 14.88%.The firm’s revenue for the quarter was up 83.6% on a year-over-year basis. During the same period in the prior year, the firm earned $2.23 earnings per share. Equities research analysts predict that Allison Transmission will post 9.91 earnings per share for the current fiscal year.

Insider Transactions at Allison Transmission

In related news, CFO Scott A. Mell sold 2,270 shares of the company’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $125.00, for a total value of $283,750.00. Following the transaction, the chief financial officer owned 1,053 shares in the company, valued at $131,625. The trade was a 68.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Caprock Group LLC lifted its position in Allison Transmission by 191.5% in the 4th quarter. Caprock Group LLC now owns 26,051 shares of the auto parts company’s stock valued at $2,550,000 after acquiring an additional 17,114 shares in the last quarter. UBS Group AG increased its holdings in shares of Allison Transmission by 30.4% in the 4th quarter. UBS Group AG now owns 1,252,197 shares of the auto parts company’s stock worth $122,590,000 after purchasing an additional 291,649 shares in the last quarter. 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 worth $27,903,000 after purchasing an additional 14,445 shares during the last quarter. SG Americas Securities LLC raised its stake in shares of Allison Transmission by 109.9% in the fourth quarter. SG Americas Securities LLC now owns 17,014 shares of the auto parts company’s stock worth $1,666,000 after purchasing an additional 8,910 shares during the last quarter. Finally, Systematic Financial Management LP lifted its holdings in shares of Allison Transmission by 52.2% during the fourth quarter. Systematic Financial Management LP now owns 29,585 shares of the auto parts company’s stock valued at $2,896,000 after purchasing an additional 10,145 shares in the last quarter. 96.90% of the stock is owned by hedge funds and other institutional investors.

About Allison Transmission

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.