Allison Transmission Holdings, Inc. (NYSE:ALSN) Given Average Recommendation of “Hold” by Brokerages

Allison Transmission Holdings, Inc. (NYSE:ALSN) has earned an average recommendation of “Hold” from the eight research firms that are presently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $98.13.

Several research firms have issued reports on ALSN. Robert W. Baird decreased their price objective on shares of Allison Transmission from $123.00 to $100.00 and set a “neutral” rating for the company in a research note on Tuesday, April 15th. Wall Street Zen upgraded shares of Allison Transmission from a “hold” rating to a “buy” rating in a research note on Saturday. Raymond James decreased their price objective on shares of Allison Transmission from $115.00 to $110.00 and set an “outperform” rating for the company in a research note on Monday, April 14th. Morgan Stanley boosted their target price on shares of Allison Transmission from $94.00 to $100.00 and gave the stock an “equal weight” rating in a research report on Tuesday, May 6th. Finally, The Goldman Sachs Group boosted their target price on shares of Allison Transmission from $80.00 to $90.00 and gave the stock a “sell” rating in a research report on Tuesday, May 27th.

Allison Transmission Price Performance

ALSN opened at $98.72 on Wednesday. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45. Allison Transmission has a 52-week low of $72.39 and a 52-week high of $122.53. The company has a 50 day moving average of $97.60 and a two-hundred day moving average of $103.75. The company has a market cap of $8.32 billion, a P/E ratio of 11.88 and a beta of 1.00.

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

Allison Transmission Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Monday, May 19th were given a dividend of $0.27 per share. The ex-dividend date of this dividend was Monday, May 19th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.09%. Allison Transmission’s payout ratio is currently 12.50%.

Allison Transmission announced that its board has initiated a stock repurchase plan on Thursday, February 20th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to purchase up to 57.1% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at Allison Transmission

In other Allison Transmission news, VP Ryan A. Milburn sold 3,412 shares of the stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total transaction of $359,078.88. Following the sale, the vice president now directly owns 11,924 shares of the company’s stock, valued at approximately $1,254,881.76. This represents a 22.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP John Coll sold 1,788 shares of the 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 sale, the senior vice president now directly owns 15,388 shares in the company, valued at $1,466,938.04. This trade represents a 10.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Allison Transmission

A number of institutional investors and hedge funds have recently modified their holdings of ALSN. Loomis Sayles & Co. L P raised its holdings in shares of Allison Transmission by 301.1% during the fourth quarter. Loomis Sayles & Co. L P now owns 2,378,731 shares of the auto parts company’s stock worth $257,046,000 after purchasing an additional 1,785,687 shares during the period. Norges Bank acquired a new stake in shares of Allison Transmission during the fourth quarter worth $108,916,000. Caisse DE Depot ET Placement DU Quebec raised its holdings in shares of 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 period. Raymond James Financial Inc. acquired a new stake in shares of Allison Transmission during the fourth quarter worth $41,081,000. Finally, FMR LLC raised its holdings in shares of Allison Transmission by 1.9% during the fourth quarter. FMR LLC now owns 12,993,015 shares of the auto parts company’s stock worth $1,404,025,000 after purchasing an additional 247,318 shares during the period. 96.90% of the stock is 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.