Allison Transmission (NYSE:ALSN) to Repurchase $5.00 billion in Shares

Allison Transmission (NYSE:ALSN) declared that its Board of Directors has initiated a stock repurchase plan on Thursday, February 20th, RTT News reports. The company plans to buyback $5.00 billion in outstanding shares. This buyback authorization permits the auto parts company to repurchase up to 57.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Bank of America boosted their price target on Allison Transmission from $67.00 to $77.00 and gave the company an “underperform” rating in a research note on Wednesday, October 30th. Citigroup lowered their price objective on Allison Transmission from $120.00 to $115.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 12th. The Goldman Sachs Group upped their price objective on Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a research note on Thursday, December 12th. Morgan Stanley upped their price objective on Allison Transmission from $110.00 to $112.00 and gave the company an “equal weight” rating in a research note on Tuesday, December 17th. Finally, Oppenheimer boosted their target price on Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a report on Wednesday, October 30th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $100.75.

Allison Transmission Trading Down 1.4 %

Shares of Allison Transmission stock traded down $1.44 on Thursday, hitting $102.34. 716,692 shares of the company’s stock traded hands, compared to its average volume of 612,145. The firm’s 50-day moving average price is $111.81 and its two-hundred day moving average price is $104.21. The stock has a market capitalization of $8.75 billion, a PE ratio of 12.31 and a beta of 1.00. Allison Transmission has a one year low of $69.80 and a one year high of $122.53. The company has a debt-to-equity ratio of 1.45, a current ratio of 3.04 and a quick ratio of 2.42.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings data on Tuesday, February 11th. The auto parts company reported $2.01 EPS for the quarter, beating analysts’ consensus estimates of $1.90 by $0.11. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. On average, research analysts expect that Allison Transmission will post 9.06 EPS for the current fiscal year.

Allison Transmission Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Monday, March 3rd will be given a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.06%. This is a boost from Allison Transmission’s previous quarterly dividend of $0.25. Allison Transmission’s dividend payout ratio is currently 12.03%.

Insider Activity at Allison Transmission

In other Allison Transmission news, SVP John Coll sold 2,000 shares of the stock in a transaction dated Tuesday, December 31st. The stock was sold at an average price of $108.40, for a total transaction of $216,800.00. Following the completion of the transaction, the senior vice president now owns 6,420 shares in the company, valued at approximately $695,928. This represents a 23.75 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO David S. Graziosi sold 11,590 shares of the stock in a transaction dated Friday, November 29th. The stock was sold at an average price of $119.44, for a total transaction of $1,384,309.60. Following the transaction, the chief executive officer now owns 168,833 shares of the company’s stock, valued at approximately $20,165,413.52. This represents a 6.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 20,639 shares of company stock worth $2,448,077 in the last quarter. Corporate insiders own 1.10% of the company’s stock.

Allison Transmission Company Profile

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.