Allison Transmission (NYSE:ALSN) to Repurchase $5.00 billion in Shares

Allison Transmission (NYSE:ALSN) announced that its Board of Directors has authorized a share buyback program on Thursday, February 20th, RTT News reports. The company plans to buyback $5.00 billion in outstanding shares. This buyback authorization allows the auto parts company to repurchase up to 57.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

ALSN has been the topic of a number of research reports. Morgan Stanley increased their target price on shares of Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a report on Tuesday, December 17th. Citigroup dropped their price objective on shares of Allison Transmission from $120.00 to $115.00 and set a “neutral” rating on the stock in a report on Wednesday, February 12th. StockNews.com cut shares of Allison Transmission from a “strong-buy” rating to a “buy” rating in a report on Thursday, February 13th. Robert W. Baird increased their price objective on shares of Allison Transmission from $103.00 to $108.00 and gave the stock a “neutral” rating in a report on Wednesday, October 30th. Finally, Oppenheimer increased their price objective on shares of Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a report on Wednesday, October 30th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $100.75.

Allison Transmission Stock Performance

Shares of ALSN opened at $100.76 on Friday. The firm has a 50-day moving average price of $111.81 and a 200 day moving average price of $104.21. The firm has a market capitalization of $8.62 billion, a PE ratio of 12.13 and a beta of 1.00. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45. Allison Transmission has a 52-week low of $71.35 and a 52-week high of $122.53.

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, beating 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%. On average, sell-side analysts anticipate 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. Investors of record on Monday, March 3rd will be given a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.07%. The ex-dividend date is Monday, March 3rd. This is a positive change from Allison Transmission’s previous quarterly dividend of $0.25. Allison Transmission’s dividend payout ratio is currently 12.03%.

Insider Activity at Allison Transmission

In other news, CEO David S. Graziosi sold 11,590 shares of the firm’s stock in a transaction dated Friday, November 29th. The shares were sold at an average price of $119.44, for a total transaction of $1,384,309.60. Following the completion of the transaction, the chief executive officer now owns 168,833 shares in the company, valued at approximately $20,165,413.52. This trade represents a 6.42 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP John Coll sold 2,000 shares of the firm’s stock in a transaction dated Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total transaction of $216,800.00. Following the transaction, the senior vice president now owns 6,420 shares of the company’s stock, valued at approximately $695,928. This trade represents a 23.75 % 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 in the last 90 days. Corporate insiders own 1.10% of the company’s stock.

Allison Transmission Company Profile

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.