Allison Transmission (NYSE:ALSN) Stock Price Up 3.8% – Time to Buy?

Allison Transmission Holdings, Inc. (NYSE:ALSN) was up 3.8% on Monday. The company traded as high as $114.03 and last traded at $114.0240. Approximately 104,703 shares were traded during mid-day trading, a decline of 89% from the average daily volume of 934,790 shares. The stock had previously closed at $109.86.

Analyst Ratings Changes

ALSN has been the topic of several research analyst reports. Wells Fargo & Company cut their price objective on Allison Transmission from $137.00 to $120.00 and set an “equal weight” rating on the stock in a report on Thursday. Weiss Ratings upgraded Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Freedom Broker began coverage on Allison Transmission in a report on Friday, October 2nd. They set a “buy” rating and a $144.00 target price for the company. Citigroup raised Allison Transmission from a “neutral” rating to a “buy” rating and set a $135.00 target price for the company in a research report on Monday. Finally, JPMorgan Chase & Co. cut their price target on shares of Allison Transmission from $145.00 to $142.00 and set a “neutral” rating on the stock in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $131.57.

Allison Transmission Stock Performance

The company has a market capitalization of $9.39 billion, a price-to-earnings ratio of 18.08, a price-to-earnings-growth ratio of 0.58 and a beta of 0.98. The company has a current ratio of 1.81, a quick ratio of 1.17 and a debt-to-equity ratio of 2.07. The stock’s fifty day simple moving average is $121.90 and its 200-day simple moving average is $120.27.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 EPS for the quarter, beating the consensus estimate of $2.48 by $0.25. The company had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.50 billion. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The firm’s revenue was up 92.4% compared to the same quarter last year. During the same quarter last year, the company posted $2.29 EPS. Analysts predict that Allison Transmission Holdings, Inc. will post 10.25 EPS for the current year.

Allison Transmission Dividend Announcement

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

Insider Buying and Selling at Allison Transmission

In related news, insider Eric Scroggins sold 1,050 shares of Allison Transmission stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total value of $131,250.00. Following the completion of the transaction, the insider directly owned 16,604 shares in the company, valued at approximately $2,075,500. This trade represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO David Graziosi sold 26,708 shares of the business’s stock in a transaction on 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 directly owned 304,843 shares of the company’s stock, valued at $40,534,973.71. The trade was a 8.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Allison Transmission

A number of hedge funds have recently bought and sold shares of ALSN. Millstone Evans Group LLC acquired a new position in shares of Allison Transmission during the first quarter worth about $26,000. Cedar Mountain Advisors LLC purchased a new stake in shares of Allison Transmission during the first quarter worth approximately $27,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Allison Transmission during the first quarter worth approximately $28,000. Persistent Asset Partners Ltd purchased a new stake in shares of Allison Transmission during the second quarter worth approximately $43,000. Finally, State of Wyoming acquired a new stake in Allison Transmission in the second quarter valued at approximately $72,000. Institutional investors and hedge funds own 96.90% of the company’s stock.

Allison Transmission Company Profile

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.