Allison Transmission (NYSE:ALSN) Upgraded at Zacks Research

Zacks Research upgraded shares of Allison Transmission (NYSE:ALSN) from a hold rating to a strong-buy rating in a report released on Monday,Zacks reports.

A number of other equities research analysts also recently commented on the stock. Freedom Broker assumed coverage on shares of Allison Transmission in a research report on Friday, October 2nd. They issued a “buy” rating and a $144.00 target price for the company. Morgan Stanley raised their price target on Allison Transmission from $126.00 to $130.00 and gave the stock an “equal weight” rating in a research note on Friday, July 17th. Citigroup cut their price objective on Allison Transmission from $135.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday, July 14th. JPMorgan Chase & Co. upped their price objective on Allison Transmission from $140.00 to $145.00 and gave the company a “neutral” rating in a research report on Monday, July 13th. Finally, Weiss Ratings raised Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $133.00.

Allison Transmission Price Performance

Shares of NYSE:ALSN opened at $110.75 on Monday. Allison Transmission has a fifty-two week low of $76.01 and a fifty-two week high of $137.62. The business has a 50-day simple moving average of $122.12 and a two-hundred day simple moving average of $120.31. 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 cap of $9.15 billion, a price-to-earnings ratio of 17.61, a price-to-earnings-growth ratio of 0.60 and a beta of 0.98.

Allison Transmission (NYSE:ALSN) last announced its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.48 by $0.25. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The firm had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter last year, the firm posted $2.29 EPS. The business’s quarterly revenue was up 92.4% compared to the same quarter last year. On average, analysts expect that Allison Transmission will post 10.27 earnings per share for the current year.

Allison Transmission Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Friday, August 21st were paid a dividend of $0.29 per share. 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 currently 18.44%.

Insiders Place Their Bets

In other news, CEO David Graziosi sold 26,708 shares of the company’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 completion of the sale, the chief executive officer directly owned 304,843 shares in the company, valued at $40,534,973.71. This represents a 8.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Eric Scroggins sold 1,050 shares of the firm’s 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 represents a 5.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.10% of the company’s stock.

Institutional Trading of Allison Transmission

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Millstone Evans Group LLC bought a new position in shares of Allison Transmission during the 1st quarter valued at approximately $26,000. Cedar Mountain Advisors LLC bought a new stake in Allison Transmission during the 1st quarter worth approximately $27,000. Cassaday & Co Wealth Management LLC bought a new stake in Allison Transmission during the 1st quarter worth approximately $28,000. Persistent Asset Partners Ltd purchased a new position in Allison Transmission during the second quarter valued at approximately $43,000. Finally, Platinum Investment Management Ltd. purchased a new position in Allison Transmission during the fourth quarter valued at approximately $62,000. Hedge funds and other institutional investors 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.