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

Allison Transmission Holdings, Inc. (NYSE:ALSN) has earned a consensus recommendation of “Hold” from the eight ratings firms that are currently covering the company, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, four have given a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $101.13.

A number of brokerages have recently commented on ALSN. StockNews.com downgraded shares of Allison Transmission from a “buy” rating to a “hold” rating in a research note on Thursday, March 27th. JPMorgan Chase & Co. cut their price objective on Allison Transmission from $129.00 to $110.00 and set a “neutral” rating on the stock in a research report on Tuesday, March 18th. The Goldman Sachs Group upped their target price on Allison Transmission from $82.00 to $94.00 and gave the stock a “sell” rating in a research report on Thursday, December 12th. Citigroup dropped their target price on Allison Transmission from $115.00 to $108.00 and set a “neutral” rating on the stock in a report on Monday. Finally, Morgan Stanley upped their price target on Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a report on Tuesday, December 17th.

Allison Transmission Price Performance

Shares of Allison Transmission stock opened at $97.27 on Friday. The business’s fifty day moving average price is $104.23 and its 200 day moving average price is $106.59. Allison Transmission has a twelve month low of $71.49 and a twelve month high of $122.53. The company has a current ratio of 3.04, a quick ratio of 2.42 and a debt-to-equity ratio of 1.45. The stock has a market capitalization of $8.32 billion, a P/E ratio of 11.71 and a beta of 1.02.

Allison Transmission (NYSE:ALSN) last issued its earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.90 by $0.11. Allison Transmission had a return on equity of 47.95% and a net margin of 22.67%. As a group, research analysts anticipate that Allison Transmission will post 9.06 earnings per share for the current year.

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

Allison Transmission Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Shareholders of record on Monday, March 3rd were issued a dividend of $0.27 per share. The ex-dividend date was Monday, March 3rd. This is an increase from Allison Transmission’s previous quarterly dividend of $0.25. This represents a $1.08 annualized dividend and a yield of 1.11%. Allison Transmission’s payout ratio is currently 13.00%.

Insider Transactions at Allison Transmission

In other news, VP Ryan A. Milburn sold 4,546 shares of the stock in a transaction dated Thursday, March 6th. The shares were sold at an average price of $96.20, for a total transaction of $437,325.20. Following the transaction, the vice president now owns 14,138 shares of the company’s stock, valued at approximately $1,360,075.60. This trade represents a 24.33 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of Allison Transmission

Several hedge funds and other institutional investors have recently bought and sold shares of the company. DGS Capital Management LLC raised its holdings in shares of Allison Transmission by 2.5% during the fourth quarter. DGS Capital Management LLC now owns 3,424 shares of the auto parts company’s stock worth $370,000 after purchasing an additional 84 shares during the period. Wealth Enhancement Advisory Services LLC grew its position in shares of Allison Transmission by 0.7% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 15,370 shares of the auto parts company’s stock valued at $1,661,000 after buying an additional 100 shares during the last quarter. Arizona State Retirement System lifted its holdings in 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 worth $2,733,000 after acquiring an additional 100 shares during the last quarter. Vident Advisory LLC boosted its stake in Allison Transmission by 1.0% in the fourth quarter. Vident Advisory LLC now owns 10,182 shares of the auto parts company’s stock valued at $1,100,000 after acquiring an additional 102 shares during the period. Finally, Amalgamated Bank boosted its stake in Allison Transmission by 1.6% in the fourth quarter. Amalgamated Bank now owns 6,381 shares of the auto parts company’s stock valued at $690,000 after acquiring an additional 103 shares during the period. 96.90% of the stock is owned by institutional investors.

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.