Allison Transmission (NYSE:ALSN) Board of Directors Authorizes Stock Buyback Program

Allison Transmission (NYSE:ALSN) declared that its board has authorized a stock repurchase plan on Thursday, February 20th, RTT News reports. The company plans to buyback $5.00 billion in shares. This buyback authorization permits the auto parts company to repurchase up to 57.1% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. StockNews.com lowered shares of Allison Transmission from a “strong-buy” rating to a “buy” rating in a research report on Thursday, February 13th. Oppenheimer increased their target price on shares of Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Bank of America lifted 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. The Goldman Sachs Group increased their price target on Allison Transmission from $82.00 to $94.00 and gave the stock a “sell” rating in a research report on Thursday, December 12th. Finally, Robert W. Baird boosted their price objective on Allison Transmission from $103.00 to $108.00 and gave the company a “neutral” rating in a research report on Wednesday, October 30th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, Allison Transmission has an average rating of “Hold” and a consensus target price of $100.75.

Allison Transmission Stock Performance

Shares of NYSE:ALSN opened at $102.34 on Friday. 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 has a 1 year low of $69.80 and a 1 year high of $122.53. The firm has a market capitalization of $8.75 billion, a PE ratio of 12.31 and a beta of 1.00. The business’s 50 day moving average price is $111.81 and its 200-day moving average price is $104.21.

Allison Transmission (NYSE:ALSN) last released its earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share (EPS) for the quarter, topping 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%. As a group, equities research analysts expect that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Allison Transmission Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Monday, March 3rd will be issued a dividend of $0.27 per share. This is a boost from Allison Transmission’s previous quarterly dividend of $0.25. This represents a $1.08 annualized dividend and a dividend yield of 1.06%. Allison Transmission’s payout ratio is currently 12.03%.

Insider Activity

In other Allison Transmission news, SVP John Coll sold 2,000 shares of the business’s stock in a transaction dated Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total value of $216,800.00. Following the transaction, the senior vice president now directly owns 6,420 shares in the company, valued at $695,928. The trade was a 23.75 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO David S. Graziosi sold 1,723 shares of the firm’s stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $120.26, for a total transaction of $207,207.98. Following the sale, the chief executive officer now owns 168,833 shares of the company’s stock, valued at $20,303,856.58. This represents a 1.01 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 20,639 shares of company stock worth $2,448,077 over the last ninety days. Corporate insiders own 1.10% of the company’s stock.

About Allison Transmission

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.