Recent Research Analysts’ Ratings Changes for Allison Transmission (ALSN)

A number of research firms have changed their ratings and price targets for Allison Transmission (NYSE: ALSN):

  • 11/27/2019 – Allison Transmission is now covered by analysts at Raymond James. They set an “outperform” rating and a $50.00 price target on the stock.
  • 11/20/2019 – Allison Transmission is now covered by analysts at Raymond James. They set an “outperform” rating and a $50.00 price target on the stock.
  • 11/19/2019 – Allison Transmission was upgraded by analysts at Vertical Research from a “hold” rating to a “buy” rating.
  • 11/14/2019 – Allison Transmission was upgraded by analysts at Bank of America Corp from a “neutral” rating to a “buy” rating. They now have a $55.00 price target on the stock.
  • 11/1/2019 – Allison Transmission had its price target lowered by analysts at Royal Bank of Canada to $46.00. They now have a “sector perform” rating on the stock.
  • 11/1/2019 – Allison Transmission was given a new $47.00 price target on by analysts at Morgan Stanley. They now have a “hold” rating on the stock.
  • 11/1/2019 – Allison Transmission was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. They now have a $46.00 price target on the stock. According to Zacks, “Shares of Allison Transmission have underperformed the broader industry over the last twelve months. The company anticipates year-over year decline in net income and adjusted EBITA in 2019. Declining demand for hydraulic fracturing applications in the North America Off-Highway end market is likely to affect the firm’s margins. Allison has also been bearing the brunt of  rising R&D costs and the trend is likely to continue. However, the firm’s strategic acquisitions including the buyout of Walker Die and C&R Tool bode well. The firm is increasing the pace of development of products that cater to electrification and fuel cell markets for commercial vehicles. Investor-friendly moves are buoying shareholders’ confidence. That said, investors are recommended to wait for a better entry point, in consideration of the headwinds.”
  • 10/14/2019 – Allison Transmission was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. They now have a $47.00 price target on the stock. According to Zacks, “Of late, Allison’s earnings estimates for the current year have been trending downward. The company anticipates year-over year decline in net income and adjusted EBITA in 2019. Declining demand for hydraulic fracturing applications in the North America Off-Highway end market is likely to affect the firm’s margins. Allison has also been bearing the brunt of  rising R&D costs and the trend is likely to continue. However, the firm’s strategic acquisitions including the buyout of Walker Die and C&R Tool bode well. The firm is increasing the pace of development of products that cater to electrification and fuel cell markets for commercial vehicles. Investor-friendly moves are buoying shareholders’ confidence. That said, investors are recommended to wait for a better entry point, in consideration of the headwinds.”

Shares of NYSE:ALSN opened at $47.41 on Wednesday. The business’s fifty day moving average price is $46.15 and its two-hundred day moving average price is $45.16. Allison Transmission Holdings Inc has a fifty-two week low of $40.35 and a fifty-two week high of $52.67. The stock has a market capitalization of $5.77 billion, a price-to-earnings ratio of 9.92, a price-to-earnings-growth ratio of 1.44 and a beta of 1.37. The company has a debt-to-equity ratio of 3.38, a current ratio of 1.57 and a quick ratio of 1.13.

Allison Transmission (NYSE:ALSN) last announced its earnings results on Wednesday, October 30th. The auto parts company reported $1.23 EPS for the quarter, topping the consensus estimate of $1.12 by $0.11. Allison Transmission had a return on equity of 91.48% and a net margin of 23.61%. The business had revenue of $669.00 million for the quarter, compared to the consensus estimate of $665.63 million. During the same period in the previous year, the business earned $1.27 EPS. Allison Transmission’s revenue was down 3.3% compared to the same quarter last year. Research analysts expect that Allison Transmission Holdings Inc will post 4.76 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Friday, November 15th were issued a dividend of $0.15 per share. The ex-dividend date was Thursday, November 14th. This represents a $0.60 annualized dividend and a yield of 1.27%. Allison Transmission’s dividend payout ratio is currently 12.55%.

A number of hedge funds have recently made changes to their positions in ALSN. Millennium Management LLC lifted its stake in shares of Allison Transmission by 219.5% in the 3rd quarter. Millennium Management LLC now owns 70,376 shares of the auto parts company’s stock valued at $3,311,000 after purchasing an additional 48,349 shares during the period. Squarepoint Ops LLC lifted its stake in Allison Transmission by 31.7% in the third quarter. Squarepoint Ops LLC now owns 377,895 shares of the auto parts company’s stock valued at $17,780,000 after buying an additional 90,929 shares during the period. Voloridge Investment Management LLC acquired a new position in Allison Transmission in the third quarter valued at about $944,000. Banco de Sabadell S.A boosted its holdings in Allison Transmission by 17.6% during the third quarter. Banco de Sabadell S.A now owns 22,388 shares of the auto parts company’s stock worth $1,045,000 after buying an additional 3,346 shares during the last quarter. Finally, Barclays PLC boosted its holdings in Allison Transmission by 42.1% during the third quarter. Barclays PLC now owns 194,615 shares of the auto parts company’s stock worth $9,156,000 after buying an additional 57,650 shares during the last quarter. 94.61% of the stock is currently owned by hedge funds and other institutional investors.

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles worldwide. It offers 12 transmission product lines for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school, transit, and hybrid-transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles.

Further Reading: Profit Margin

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