Allison Transmission Holdings, Inc. (NYSE:ALSN) Given Average Rating of “Moderate Buy” by Brokerages

Allison Transmission Holdings, Inc. (NYSE:ALSN) has earned an average rating of “Moderate Buy” from the eight analysts that are presently covering the firm, Marketbeat Ratings reports. Five analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among brokers that have covered the stock in the last year is $130.50.

A number of equities analysts have commented on ALSN shares. Zacks Research cut shares of Allison Transmission from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 24th. Wells Fargo & Company upped their target price on shares of Allison Transmission from $127.00 to $137.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. Morgan Stanley increased their price target on shares of Allison Transmission from $117.00 to $126.00 and gave the company an “equal weight” rating in a report on Wednesday, May 13th. Citigroup dropped their price target on Allison Transmission from $135.00 to $125.00 and set a “neutral” rating for the company in a research report on Tuesday. Finally, Weiss Ratings upgraded Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 2nd.

Allison Transmission Trading Down 0.7%

ALSN stock opened at $114.22 on Thursday. The firm has a fifty day moving average price of $116.46 and a 200 day moving average price of $116.44. Allison Transmission has a fifty-two week low of $76.01 and a fifty-two week high of $137.62. The company has a debt-to-equity ratio of 2.23, a quick ratio of 1.18 and a current ratio of 1.85. The firm has a market cap of $9.47 billion, a PE ratio of 17.76, a price-to-earnings-growth ratio of 0.62 and a beta of 0.95.

Allison Transmission (NYSE:ALSN) last announced its quarterly earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share for the quarter, topping 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 net margin of 14.88% and a return on equity of 37.50%. Allison Transmission’s quarterly revenue was up 83.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.23 earnings per share. Sell-side analysts anticipate that Allison Transmission will post 9.84 earnings per share for the current fiscal year.

Allison Transmission Announces Dividend

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

Insiders Place Their Bets

In related news, CFO Scott A. Mell sold 2,270 shares of the firm’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 completion of the sale, the chief financial officer directly owned 1,053 shares in the company, valued at $131,625. This trade represents a 68.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Millstone Evans Group LLC purchased a new position in shares of Allison Transmission during the 1st quarter worth about $26,000. Cedar Mountain Advisors LLC purchased a new stake in Allison Transmission in the 1st quarter worth about $27,000. Cassaday & Co Wealth Management LLC purchased a new stake in Allison Transmission in the 1st quarter worth about $28,000. Larson Financial Group LLC lifted its stake 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 purchasing an additional 263 shares during the last quarter. Finally, Transamerica Financial Advisors LLC lifted its stake in Allison Transmission by 2,112.5% in the fourth 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. Institutional investors 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.