Allison Transmission (NYSE:ALSN) Shares Gap Up – Still a Buy?

Allison Transmission Holdings, Inc. (NYSE:ALSN)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $112.74, but opened at $119.55. Allison Transmission shares last traded at $118.87, with a volume of 240,157 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on ALSN shares. Morgan Stanley lifted their price objective on Allison Transmission from $117.00 to $126.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 13th. Citigroup upped their target price on Allison Transmission from $130.00 to $135.00 and gave the company a “neutral” rating in a report on Monday, April 13th. Wells Fargo & Company raised their target price on Allison Transmission from $127.00 to $137.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. Zacks Research lowered Allison Transmission from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 24th. Finally, Weiss Ratings cut shares of Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $127.17.

Allison Transmission Price Performance

The stock’s fifty day moving average price is $120.08 and its 200-day moving average price is $115.24. The firm has a market cap of $10.02 billion, a price-to-earnings ratio of 18.80, a P/E/G ratio of 0.62 and a beta of 0.94. The company has a current ratio of 1.85, a quick ratio of 1.18 and a debt-to-equity ratio of 2.23.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings results 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. Allison Transmission had a net margin of 14.88% and a return on equity of 37.50%. The firm had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the company earned $2.23 EPS. The business’s revenue for the quarter was up 83.6% compared to the same quarter last year. As a group, equities research analysts forecast that Allison Transmission Holdings, Inc. will post 9.86 earnings per share for the current fiscal year.

Allison Transmission Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Monday, May 18th were given a $0.29 dividend. The ex-dividend date was Monday, May 18th. This represents a $1.16 dividend on an annualized basis and a yield of 1.0%. Allison Transmission’s payout ratio is currently 18.04%.

Insider Activity at Allison Transmission

In other news, CFO Scott A. Mell sold 2,270 shares of the company’s stock in a transaction on Friday, May 8th. The stock was 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 of the company’s stock, valued at $131,625. This represents 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 company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Millstone Evans Group LLC acquired a new stake in Allison Transmission in the 1st quarter valued at approximately $26,000. Cedar Mountain Advisors LLC purchased a new stake in Allison Transmission in the first quarter valued at approximately $27,000. Cassaday & Co Wealth Management LLC acquired a new position in Allison Transmission during the first quarter worth $28,000. Larson Financial Group LLC lifted its stake in Allison Transmission by 536.7% during the fourth quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company’s stock worth $31,000 after purchasing an additional 263 shares in the last quarter. Finally, Transamerica Financial Advisors LLC boosted its position in shares of Allison Transmission by 2,112.5% during the fourth quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company’s stock worth $35,000 after buying an additional 338 shares during the period. Institutional investors and hedge funds own 96.90% of the company’s stock.

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.