Allison Transmission Holdings, Inc. (NYSE:ALSN) Stock Has Average Target Price of $131.57 According to Analysts

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) have earned a consensus rating of “Moderate Buy” from the nine ratings firms that are presently covering the stock, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold rating, four have given a buy rating and two have issued a strong buy rating on the company. The average 1-year price target among brokers that have covered the stock in the last year is $131.57.

A number of research analysts have weighed in on ALSN shares. Freedom Broker initiated coverage on shares of Allison Transmission in a research report on Friday, October 2nd. They set a “buy” rating and a $144.00 price target on the stock. Morgan Stanley raised their price target on shares of Allison Transmission from $126.00 to $130.00 and gave the stock an “equal weight” rating in a research report on Friday, July 17th. JPMorgan Chase & Co. cut their price objective on Allison Transmission from $145.00 to $142.00 and set a “neutral” rating on the stock in a research note on Thursday, October 8th. Wells Fargo & Company reduced their price target on shares of Allison Transmission from $137.00 to $120.00 and set an “equal weight” rating on the stock in a research report on Thursday, October 8th. Finally, Citigroup upgraded Allison Transmission from a “neutral” rating to a “buy” rating and set a $135.00 price objective for the company in a research report on Monday, October 12th.

Insider Activity at Allison Transmission

In related news, insider Eric C. Scroggins sold 1,050 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $125.00, for a total transaction of $131,250.00. Following the completion of the sale, 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO David S. Graziosi sold 26,708 shares of Allison Transmission 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 transaction, the chief executive officer owned 304,843 shares in the company, valued at $40,534,973.71. The trade was a 8.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in Allison Transmission during the second quarter valued at approximately $448,232,000. First Trust Advisors LP increased its holdings in shares of Allison Transmission by 85.2% during the 1st quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company’s stock valued at $237,234,000 after acquiring an additional 932,201 shares during the last quarter. Wasatch Advisors LP grew its holdings in Allison Transmission by 105.7% during the second quarter. Wasatch Advisors LP now owns 1,510,496 shares of the auto parts company’s stock valued at $170,293,000 after purchasing an additional 776,169 shares during the last quarter. Stockbridge Partners LLC bought a new position in Allison Transmission in the 2nd quarter worth $169,108,000. Finally, Bank of America Corp DE lifted its position in shares of Allison Transmission by 12.3% during the 1st quarter. Bank of America Corp DE now owns 1,100,162 shares of the auto parts company’s stock worth $128,785,000 after purchasing an additional 120,335 shares during the last quarter. 96.90% of the stock is owned by hedge funds and other institutional investors.

Allison Transmission Price Performance

Shares of NYSE ALSN opened at $107.20 on Friday. The stock has a market cap of $8.85 billion, a price-to-earnings ratio of 17.04, a PEG ratio of 0.56 and a beta of 0.98. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $137.62. The company’s 50-day moving average price is $119.61 and its 200 day moving average price is $118.14. The company has a current ratio of 1.81, a quick ratio of 1.17 and a debt-to-equity ratio of 2.07.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings data on Monday, August 3rd. The auto parts company reported $2.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.48 by $0.25. The firm had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.50 billion. Allison Transmission had a return on equity of 38.18% and a net margin of 12.02%. The company’s quarterly revenue was up 92.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.29 EPS. As a group, research analysts forecast that Allison Transmission will post 10.25 earnings per share for the current fiscal year.

Allison Transmission Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, August 21st were given a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, August 21st. Allison Transmission’s payout ratio is 18.44%.

About Allison Transmission

Allison Transmission, Inc designs and manufactures propulsion solutions for commercial, defense and off-highway vehicles. The company is best known for its fully automatic transmissions, which are used in applications including refuse collection, construction, distribution, emergency services, public transportation and mining.

Its product portfolio also includes electric and hybrid-electric propulsion systems, including the eGen Power electric axle and other electrification technologies.