Allison Transmission (NYSE:ALSN) Trading Down 5.2% – Here’s What Happened

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) fell 5.2% during trading on Tuesday . The stock traded as low as $119.15 and last traded at $122.3140. 171,301 shares traded hands during trading, a decline of 80% from the average session volume of 847,114 shares. The stock had previously closed at $129.04.

More Allison Transmission News

Here are the key news stories impacting Allison Transmission this week:

• Positive Sentiment: Q1 results beat expectations — Adjusted EPS of $2.57 and revenue of $1.41B topped estimates, showing solid demand and a sizable year-over-year sales jump. This is the primary bullish catalyst supporting valuation. Allison Transmission (ALSN) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Off‑Highway acquisition materially lifted sales — Management attributed most of the revenue gain to the newly acquired Off‑Highway unit, expanding addressable markets and contributing to adjusted EBITDA of $362M (26% margin). This supports medium-term growth expectations. Allison Announces First Quarter 2026 Results
• Positive Sentiment: Strong operating cash flow — Net cash provided by operating activities was $156M in Q1, reinforcing balance-sheet resilience while integrating the acquisition. Allison Announces First Quarter 2026 Results
• Neutral Sentiment: FY2026 revenue guidance set roughly in line with consensus ($5.6B–$5.9B) — range covers analyst expectations but is wide; investors will watch updates as integration progresses. MarketBeat Q1 Coverage
• Neutral Sentiment: Earnings call and slide deck provide detail — Management discussed segment results, integration plans and end‑market momentum; useful for gauging timing of synergies. Allison Q1 2026 Earnings Call Transcript
• Negative Sentiment: Integration costs and margin pressure — Analysts and Zacks flagged acquisition-related integration costs that weighed on GAAP profitability and kept net income modest (net income = 8% of sales), which may temper near-term margin expansion expectations. ALSN Q1 Earnings Beat Estimates on Off-Highway Additions
• Negative Sentiment: One-time and integration items complicate headline metrics — While adjusted results look strong, GAAP EPS and net income dynamics (and any additional acquisition-related costs or leverage) create short-term uncertainty that likely caused profit-taking after the print. MarketBeat Q1 Coverage

Wall Street Analysts Forecast Growth

Several research firms recently commented on ALSN. Citigroup increased their target price on shares of Allison Transmission from $130.00 to $135.00 and gave the company a “neutral” rating in a report on Monday, April 13th. Morgan Stanley increased their target price on shares of Allison Transmission from $109.00 to $117.00 and gave the company an “equal weight” rating in a report on Monday, March 16th. Wells Fargo & Company increased their target price on shares of Allison Transmission from $98.00 to $127.00 and gave the company an “equal weight” rating in a report on Thursday, February 26th. Oppenheimer increased their target price on shares of Allison Transmission from $115.00 to $135.00 and gave the company an “outperform” rating in a report on Tuesday, February 24th. Finally, Weiss Ratings lowered shares of Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $114.13.

Allison Transmission Trading Down 2.7%

The stock has a market capitalization of $10.44 billion, a P/E ratio of 17.13, a P/E/G ratio of 0.79 and a beta of 1.01. The firm’s 50 day moving average price is $121.93 and its 200 day moving average price is $105.82. The company has a debt-to-equity ratio of 1.55, a current ratio of 4.85 and a quick ratio of 4.17.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings data on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, beating the consensus estimate of $2.10 by $0.47. The firm had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.38 billion. Allison Transmission had a net margin of 20.70% and a return on equity of 37.41%. The company’s quarterly revenue was up 83.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.23 earnings per share. As a group, equities research analysts expect that Allison Transmission Holdings, Inc. will post 9.68 earnings per share for the current fiscal year.

Allison Transmission Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Monday, March 9th were paid a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, March 9th. This is a positive change from Allison Transmission’s previous quarterly dividend of $0.27. Allison Transmission’s payout ratio is presently 15.83%.

Insider Buying and Selling at Allison Transmission

In other news, insider Eric C. Scroggins sold 1,313 shares of Allison Transmission stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $114.40, for a total transaction of $150,207.20. Following the sale, the insider owned 17,654 shares of the company’s stock, valued at approximately $2,019,617.60. The trade was a 6.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Allison Transmission

A number of large investors have recently modified their holdings of the stock. Jane Street Group LLC boosted its stake in Allison Transmission by 341.3% during the first quarter. Jane Street Group LLC now owns 288,674 shares of the auto parts company’s stock worth $27,617,000 after acquiring an additional 223,253 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in Allison Transmission by 5.7% during the first quarter. Goldman Sachs Group Inc. now owns 214,907 shares of the auto parts company’s stock worth $20,560,000 after acquiring an additional 11,542 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in Allison Transmission by 9.6% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,892 shares of the auto parts company’s stock worth $180,000 after acquiring an additional 165 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in Allison Transmission by 441.5% during the second quarter. EverSource Wealth Advisors LLC now owns 1,018 shares of the auto parts company’s stock worth $97,000 after acquiring an additional 830 shares in the last quarter. Finally, Marshall Wace LLP bought a new stake in Allison Transmission during the second quarter worth about $6,111,000. Institutional investors own 96.90% of the company’s stock.

Allison Transmission Company Profile

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.