Allison Transmission (NYSE:ALSN) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Allison Transmission (NYSE:ALSN) had its target price increased by research analysts at Morgan Stanley from $126.00 to $130.00 in a research note issued on Friday,Benzinga reports. The firm presently has an “equal weight” rating on the auto parts company’s stock. Morgan Stanley’s price objective suggests a potential upside of 13.87% from the company’s previous close.

Several other brokerages also recently commented on ALSN. JPMorgan Chase & Co. upped their price target on shares of Allison Transmission from $140.00 to $145.00 and gave the company a “neutral” rating in a research report on Monday. Weiss Ratings upgraded Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, July 2nd. Citigroup decreased their target price on Allison Transmission from $135.00 to $125.00 and set a “neutral” rating for the company in a research report on Tuesday. Wells Fargo & Company upped their price target on Allison Transmission from $127.00 to $137.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Finally, Zacks Research downgraded Allison Transmission from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Allison Transmission currently has a consensus rating of “Moderate Buy” and an average target price of $131.17.

Allison Transmission Price Performance

NYSE:ALSN traded down $1.33 during mid-day trading on Friday, reaching $114.16. 192,020 shares of the stock were exchanged, compared to its average volume of 985,050. Allison Transmission has a 1-year low of $76.01 and a 1-year high of $137.62. The company has a current ratio of 1.85, a quick ratio of 1.18 and a debt-to-equity ratio of 2.23. The firm has a market capitalization of $9.47 billion, a PE ratio of 17.76, a PEG ratio of 0.62 and a beta of 0.95. The business has a fifty day moving average price of $116.30 and a 200 day moving average price of $116.55.

Allison Transmission (NYSE:ALSN) last posted its quarterly earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share (EPS) for the quarter, beating 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 was up 83.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.23 earnings per share. Research analysts expect that Allison Transmission will post 9.84 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Scott A. Mell sold 2,270 shares of Allison Transmission stock in a transaction on Friday, May 8th. The stock was sold at an average price of $125.00, for a total transaction of $283,750.00. Following the completion of the sale, the chief financial officer owned 1,053 shares of the company’s stock, valued at approximately $131,625. This trade represents a 68.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Allison Transmission

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Millstone Evans Group LLC bought a new stake in shares of Allison Transmission in the 1st quarter valued at approximately $26,000. Cedar Mountain Advisors LLC bought a new position in Allison Transmission during the first quarter valued at approximately $27,000. Cassaday & Co Wealth Management LLC acquired a new stake in Allison Transmission in the first quarter valued at approximately $28,000. Larson Financial Group LLC grew its position in Allison Transmission by 536.7% in the fourth quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company’s stock worth $31,000 after acquiring an additional 263 shares in the last quarter. Finally, Transamerica Financial Advisors LLC increased its stake in shares of Allison Transmission by 2,112.5% during the 4th quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company’s stock worth $35,000 after purchasing an additional 338 shares during 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.