Allison Transmission (NYSE:ALSN) Shares Climb 3.8% – Here’s What Happened

by · The Cerbat Gem

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN – Get Free Report) shot up 3.8% on Monday. The stock traded as high as $114.03 and last traded at $114.0240. Approximately 104,703 shares traded hands during trading, a decline of 89% from the average session volume of 934,790 shares. The stock had previously closed at $109.86.

Analysts Set New Price Targets

ALSN has been the topic of a number of research analyst reports. Zacks Research raised Allison Transmission from a “hold” rating to a “strong-buy” rating in a report on Monday, October 5th. Citigroup raised shares of Allison Transmission from a “neutral” rating to a “buy” rating and set a $135.00 price target for the company in a report on Monday. JPMorgan Chase & Co. reduced their price objective on shares of Allison Transmission from $145.00 to $142.00 and set a “neutral” rating for the company in a research report on Thursday, October 8th. Freedom Broker started coverage on shares of Allison Transmission in a research report on Friday, October 2nd. They set a “buy” rating and a $144.00 price objective for the company. Finally, Weiss Ratings upgraded shares of Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Allison Transmission has an average rating of “Moderate Buy” and a consensus target price of $131.57.

View Our Latest Analysis on ALSN

Allison Transmission Trading Up 0.1%

The company has a debt-to-equity ratio of 2.07, a quick ratio of 1.17 and a current ratio of 1.81. The firm has a market capitalization of $9.22 billion, a P/E ratio of 12.92, a price-to-earnings-growth ratio of 0.59 and a beta of 0.98. The firm has a 50 day moving average price of $121.57 and a two-hundred day moving average price of $120.17.

Allison Transmission (NYSE:ALSN – Get Free Report) last announced its earnings results on Monday, August 3rd. The auto parts company reported $2.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.48 by $0.25. Allison Transmission had a return on equity of 38.18% and a net margin of 12.02%. The company had revenue of $1.57 billion for the quarter, compared to analyst estimates of $1.50 billion. During the same period in the previous year, the firm earned $2.29 earnings per share. Allison Transmission’s revenue for the quarter was up 92.4% compared to the same quarter last year. On average, equities research analysts expect that Allison Transmission Holdings, Inc. will post 10.25 EPS for the current fiscal year.

Allison Transmission Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Friday, August 21st were given a $0.29 dividend. The ex-dividend date was Friday, August 21st. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.0%. Allison Transmission’s dividend payout ratio (DPR) is 18.44%.

Insider Transactions at Allison Transmission

In related news, CEO David Graziosi sold 26,708 shares of Allison Transmission stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $132.97, for a total value of $3,551,362.76. Following the transaction, the chief executive officer owned 304,843 shares of the company’s stock, valued at approximately $40,534,973.71. This trade represents a 8.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Eric Scroggins sold 1,050 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total value of $131,250.00. Following the sale, the insider owned 16,604 shares in the company, valued at approximately $2,075,500. The trade was a 5.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ALSN. Bank of America Corp DE acquired a new position in shares of Allison Transmission in the 2nd quarter valued at about $83,110,000. MAC Alpha Capital Management LP lifted its position in shares of Allison Transmission by 59.4% in the second quarter. MAC Alpha Capital Management LP now owns 156,191 shares of the auto parts company’s stock worth $17,610,000 after purchasing an additional 58,208 shares in the last quarter. Vise Technologies Inc. purchased a new stake in shares of Allison Transmission in the second quarter worth approximately $1,047,000. BlackRock Inc. acquired a new stake in shares of Allison Transmission during the second quarter worth approximately $448,232,000. Finally, Legal & General Group Plc acquired a new stake in shares of Allison Transmission during the second quarter worth approximately $8,769,000. 96.90% of the stock is owned by hedge funds and other institutional investors.

Allison Transmission Company Profile

(Get Free Report)

Allison Transmission Holdings, Inc designs and manufactures fully automatic transmissions and propulsion solutions for commercial and defense vehicles. Its products are used in a broad range of applications, including refuse and construction trucks, buses, distribution vehicles, emergency vehicles, motorhomes, and off-highway equipment.

The company’s portfolio includes conventional automatic transmissions, hybrid-electric propulsion systems, and electric axles and other solutions intended to support vehicle electrification.

Further Reading