Allison Transmission (NYSE:ALSN) Given New $139.00 Price Target at Morgan Stanley

Allison Transmission (NYSE:ALSN) had its price objective boosted by investment analysts at Morgan Stanley from $132.00 to $139.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage currently has an “equal weight” rating on the auto parts company’s stock. Morgan Stanley‘s price target points to a potential upside of 15.49% from the company’s current price.

A number of other research analysts also recently commented on the stock. Weiss Ratings raised shares of Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Freedom Broker assumed coverage on shares of Allison Transmission in a report on Friday, October 2nd. They issued a “buy” rating and a $144.00 target price on the stock. Citigroup upgraded shares of Allison Transmission from a “neutral” rating to a “buy” rating and set a $135.00 target price for the company in a research note on Monday, October 12th. Wells Fargo & Company reduced their price target on Allison Transmission from $137.00 to $120.00 and set an “equal weight” rating for the company in a report on Thursday, October 8th. Finally, JPMorgan Chase & Co. lowered their price target on Allison Transmission from $145.00 to $142.00 and set a “neutral” rating on the stock in a research report on Thursday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $132.86.

Allison Transmission Stock Up 1.2%

Shares of Allison Transmission stock traded up $1.44 on Wednesday, reaching $120.36. 458,513 shares of the company were exchanged, compared to its average volume of 918,209. Allison Transmission has a one year low of $78.19 and a one year high of $137.62. The company has a current ratio of 1.81, a quick ratio of 1.17 and a debt-to-equity ratio of 2.07. The company has a 50-day moving average of $117.12 and a 200 day moving average of $118.37. The company has a market capitalization of $9.94 billion, a price-to-earnings ratio of 17.27, a PEG ratio of 0.60 and a beta of 1.06.

Allison Transmission (NYSE:ALSN) last posted its quarterly earnings results on Monday, November 2nd. The auto parts company reported $2.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.32 by $0.58. Allison Transmission had a net margin of 11.12% and a return on equity of 43.23%. The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.47 billion. During the same period in the prior year, the firm posted $1.63 earnings per share. The company’s quarterly revenue was up 121.4% compared to the same quarter last year. On average, equities research analysts forecast that Allison Transmission will post 10.25 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO David S. Graziosi sold 26,708 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $132.97, for a total value of $3,551,362.76. Following the transaction, the chief executive officer directly owned 304,843 shares of the company’s stock, valued at $40,534,973.71. This represents a 8.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Eric C. Scroggins sold 1,050 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total transaction of $131,250.00. Following the sale, the insider owned 16,604 shares of the company’s stock, valued at approximately $2,075,500. This represents a 5.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ALSN. BlackRock Inc. acquired a new stake in Allison Transmission during the second quarter worth approximately $448,232,000. First Trust Advisors LP boosted its holdings in shares of Allison Transmission by 85.2% during the first quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company’s stock worth $237,234,000 after acquiring an additional 932,201 shares during the period. Wasatch Advisors LP grew its position in shares of Allison Transmission by 105.7% in the second quarter. Wasatch Advisors LP now owns 1,510,496 shares of the auto parts company’s stock valued at $170,293,000 after purchasing an additional 776,169 shares during the last quarter. Stockbridge Partners LLC acquired a new position in shares of Allison Transmission in the second quarter valued at approximately $169,108,000. Finally, Bank of America Corp DE increased its stake in shares of Allison Transmission by 12.3% during the first quarter. Bank of America Corp DE now owns 1,100,162 shares of the auto parts company’s stock worth $128,785,000 after purchasing an additional 120,335 shares during the period. Institutional investors and hedge funds own 96.90% of the company’s stock.

More Allison Transmission News

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

• Positive Sentiment: Allison reported third-quarter sales of $1.534 billion, up 121% year over year, and adjusted diluted EPS of $2.90, ahead of analyst estimates. The core Allison Transmission business also posted record quarterly sales of $881 million, up 27%. Allison Announces Third Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 guidance for a second consecutive quarter. Revenue is now forecast at $6.0 billion–$6.1 billion, above the roughly $5.9 billion consensus, with earnings and cash-flow outlooks also increased. Allison Transmission Holdings Raised Full Year 2026 Guidance Again
• Positive Sentiment: Management cited strong demand across most end markets and expects more than $120 million in synergies in 2027 from the acquired off-highway business, offering potential for future earnings support. Allison Transmission Q3 Review
• Neutral Sentiment: A valuation article estimates ALSN shares may be 49% undervalued, a potentially supportive view but dependent on the assumptions behind that estimate. Allison Transmission Stock May Be 49% Undervalued
• Negative Sentiment: Analysts noted that margins declined as the acquired off-highway segment contributed revenue at lower profitability. The company will need to improve margins and realize expected synergies to turn sales growth into stronger profits. Allison Transmission Q3 Review

Allison Transmission Company Profile

Allison Transmission, Inc designs and manufactures propulsion solutions for commercial, defense and off-highway vehicles. The company is best known for its fully automatic transmissions, which are used in applications including refuse collection, construction, distribution, emergency services, public transportation and mining.

Its product portfolio also includes electric and hybrid-electric propulsion systems, including the eGen Power electric axle and other electrification technologies.