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

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) have earned an average recommendation of “Hold” from the eight analysts that are presently covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating on the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $102.00.

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

Insider Buying and Selling at Allison Transmission

In related news, VP Ryan A. Milburn sold 4,546 shares of the stock in a transaction that occurred on Thursday, March 6th. The shares were sold at an average price of $96.20, for a total value of $437,325.20. Following the completion of the transaction, the vice president now directly owns 14,138 shares of the company’s stock, valued at $1,360,075.60. This trade represents a 24.33 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP John Coll sold 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, December 31st. The stock was sold at an average price of $108.40, for a total transaction of $216,800.00. Following the sale, the senior vice president now directly owns 6,420 shares in the company, valued at approximately $695,928. This represents a 23.75 % decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Allison Transmission

Several hedge funds have recently made changes to their positions in the company. Transce3nd LLC purchased a new stake in Allison Transmission during the 4th quarter valued at about $25,000. SRH Advisors LLC acquired a new stake in shares of Allison Transmission during the fourth quarter worth about $26,000. Kestra Investment Management LLC purchased a new stake in Allison Transmission in the fourth quarter valued at approximately $30,000. Vermillion Wealth Management Inc. acquired a new position in Allison Transmission in the 4th quarter worth approximately $31,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new position in Allison Transmission during the 4th quarter worth approximately $31,000. 96.90% of the stock is owned by institutional investors and hedge funds.

Allison Transmission Stock Performance

Allison Transmission stock opened at $99.18 on Friday. The company has a debt-to-equity ratio of 1.45, a quick ratio of 2.42 and a current ratio of 3.04. The company has a market capitalization of $8.48 billion, a PE ratio of 11.93 and a beta of 1.02. The company has a 50 day moving average price of $105.63 and a 200-day moving average price of $106.12. Allison Transmission has a fifty-two week low of $71.49 and a fifty-two week high of $122.53.

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

Allison Transmission declared that its Board of Directors has initiated a stock buyback plan on Thursday, February 20th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the auto parts company to purchase up to 57.1% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Allison Transmission Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Monday, March 3rd were issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 1.09%. The ex-dividend date was 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 13.00%.

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.