Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Consensus Rating of “Hold” from Brokerages

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) have been given an average rating of “Hold” by the eight brokerages that are presently covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $102.00.

Several research analysts have weighed in on ALSN shares. Morgan Stanley increased their price target on shares of Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a research report on Tuesday, December 17th. Citigroup decreased their target price on Allison Transmission from $120.00 to $115.00 and set a “neutral” rating on the stock in a report on Wednesday, February 12th. JPMorgan Chase & Co. cut their price target on Allison Transmission from $129.00 to $110.00 and set a “neutral” rating for the company in a report on Tuesday, March 18th. The Goldman Sachs Group raised their price objective on Allison Transmission from $82.00 to $94.00 and gave the stock a “sell” rating in a research note on Thursday, December 12th. Finally, StockNews.com downgraded Allison Transmission from a “buy” rating to a “hold” rating in a research note on Thursday.

Allison Transmission Stock Performance

ALSN stock opened at $99.18 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 $71.49 and a 1 year high of $122.53. The company has a market cap of $8.48 billion, a P/E ratio of 11.93 and a beta of 1.02. The stock’s fifty day moving average price is $105.63 and its 200-day moving average price is $106.12.

Allison Transmission (NYSE:ALSN) last announced its earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.90 by $0.11. Allison Transmission had a return on equity of 47.95% and a net margin of 22.67%. On average, equities analysts forecast that Allison Transmission will post 9.06 earnings per share for the current year.

Allison Transmission Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Monday, March 3rd were issued a $0.27 dividend. The ex-dividend date was Monday, March 3rd. This is a boost from Allison Transmission’s previous quarterly dividend of $0.25. This represents a $1.08 dividend on an annualized basis and a yield of 1.09%. Allison Transmission’s payout ratio is currently 13.00%.

Allison Transmission announced that its Board of Directors has initiated a share repurchase plan on Thursday, February 20th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the auto parts company to repurchase up to 57.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, VP Ryan A. Milburn sold 4,546 shares of Allison Transmission stock in a transaction dated Thursday, March 6th. The stock was sold at an average price of $96.20, for a total value of $437,325.20. Following the sale, the vice president now directly owns 14,138 shares of the company’s stock, valued at approximately $1,360,075.60. The trade was a 24.33 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP John Coll sold 2,000 shares of the stock in a transaction that occurred on 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 of the company’s stock, valued at approximately $695,928. The trade was a 23.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Allison Transmission

Several institutional investors have recently bought and sold shares of the business. DGS Capital Management LLC boosted its stake in Allison Transmission by 2.5% during the fourth quarter. DGS Capital Management LLC now owns 3,424 shares of the auto parts company’s stock worth $370,000 after buying an additional 84 shares during the period. Wealth Enhancement Advisory Services LLC grew its position in Allison Transmission by 0.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 15,370 shares of the auto parts company’s stock valued at $1,661,000 after acquiring an additional 100 shares during the last quarter. Arizona State Retirement System increased its stake in Allison Transmission by 0.4% in the fourth quarter. Arizona State Retirement System now owns 25,289 shares of the auto parts company’s stock worth $2,733,000 after purchasing an additional 100 shares during the period. Vident Advisory LLC lifted its position in shares of Allison Transmission by 1.0% during the fourth quarter. Vident Advisory LLC now owns 10,182 shares of the auto parts company’s stock worth $1,100,000 after purchasing an additional 102 shares during the last quarter. Finally, Amalgamated Bank boosted its stake in shares of Allison Transmission by 1.6% during the fourth quarter. Amalgamated Bank now owns 6,381 shares of the auto parts company’s stock valued at $690,000 after purchasing an additional 103 shares during the period. Institutional investors own 96.90% 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.