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

Allison Transmission (NYSE:ALSN) had its price objective raised by equities research analysts at Morgan Stanley from $97.00 to $109.00 in a report released on Friday,Benzinga reports. The brokerage currently has an “equal weight” rating on the auto parts company’s stock. Morgan Stanley’s price objective suggests a potential downside of 0.47% from the company’s current price.

A number of other research firms have also recently issued reports on ALSN. Raymond James Financial upped their price objective on shares of Allison Transmission from $110.00 to $115.00 and gave the stock a “strong-buy” rating in a research report on Monday, December 22nd. Citigroup upped their price target on shares of Allison Transmission from $105.00 to $110.00 and gave the stock a “neutral” rating in a report on Tuesday, January 13th. Wells Fargo & Company raised their price objective on Allison Transmission from $85.00 to $98.00 and gave the company an “equal weight” rating in a report on Friday. Weiss Ratings restated a “hold (c+)” rating on shares of Allison Transmission in a research report on Wednesday. Finally, JPMorgan Chase & Co. increased their target price on Allison Transmission from $87.00 to $115.00 and gave the company a “neutral” rating in a research report on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Allison Transmission presently has a consensus rating of “Hold” and an average target price of $102.00.

Allison Transmission Price Performance

Allison Transmission stock opened at $109.52 on Friday. The company has a debt-to-equity ratio of 1.30, a quick ratio of 3.06 and a current ratio of 3.82. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $120.28. The stock has a market capitalization of $9.12 billion, a P/E ratio of 13.42 and a beta of 0.98. The stock has a fifty day moving average of $97.51 and a 200-day moving average of $90.19.

Allison Transmission (NYSE:ALSN) last released its earnings results on Wednesday, October 29th. The auto parts company reported $1.63 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.32). The business had revenue of $693.00 million during the quarter, compared to the consensus estimate of $779.97 million. Allison Transmission had a net margin of 22.78% and a return on equity of 40.46%. The business’s revenue was down 15.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.27 EPS. On average, sell-side analysts expect that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Insider Activity

In other news, SVP John Coll sold 1,791 shares of the company’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $98.79, for a total value of $176,932.89. Following the sale, the senior vice president directly owned 10,021 shares of the company’s stock, valued at approximately $989,974.59. This represents a 15.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Allison Transmission

Hedge funds and other institutional investors have recently bought and sold shares of the company. Kathmere Capital Management LLC grew its holdings in Allison Transmission by 4.6% during the 4th quarter. Kathmere Capital Management LLC now owns 2,643 shares of the auto parts company’s stock worth $259,000 after acquiring an additional 116 shares during the period. Verdence Capital Advisors LLC boosted its position in shares of Allison Transmission by 2.1% during the 2nd quarter. Verdence Capital Advisors LLC now owns 6,258 shares of the auto parts company’s stock valued at $594,000 after purchasing an additional 131 shares in the last quarter. GAMMA Investing LLC grew its stake in Allison Transmission by 3.9% during the fourth quarter. GAMMA Investing LLC now owns 3,514 shares of the auto parts company’s stock worth $344,000 after purchasing an additional 132 shares during the period. M&T Bank Corp increased its holdings in Allison Transmission by 3.8% in the second quarter. M&T Bank Corp now owns 3,786 shares of the auto parts company’s stock worth $360,000 after purchasing an additional 138 shares in the last quarter. Finally, Tealwood Asset Management Inc. lifted its stake in Allison Transmission by 0.5% in the fourth quarter. Tealwood Asset Management Inc. now owns 29,006 shares of the auto parts company’s stock valued at $2,840,000 after buying an additional 142 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.