Allison Transmission Holdings, Inc. (NYSE:ALSN) Announces Quarterly Dividend of $0.27

Allison Transmission Holdings, Inc. (NYSE:ALSN) announced a quarterly dividend on Thursday, February 20th, RTT News reports. Investors of record on Monday, March 3rd will be paid a dividend of 0.27 per share by the auto parts company on Friday, March 14th. This represents a $1.08 dividend on an annualized basis and a yield of 1.06%. This is an increase from Allison Transmission’s previous quarterly dividend of $0.25.

Allison Transmission has increased its dividend payment by an average of 9.6% per year over the last three years. Allison Transmission has a payout ratio of 9.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Allison Transmission to earn $10.06 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 9.9%.

Allison Transmission Trading Down 1.4 %

Shares of NYSE:ALSN opened at $102.34 on Friday. The stock has a market capitalization of $8.75 billion, a price-to-earnings ratio of 12.31 and a beta of 1.00. Allison Transmission has a 1-year low of $69.80 and a 1-year high of $122.53. The company has a debt-to-equity ratio of 1.45, a quick ratio of 2.42 and a current ratio of 3.04. The company has a 50 day moving average price of $111.81 and a 200 day moving average price of $104.21.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings results on Tuesday, February 11th. The auto parts company reported $2.01 EPS for the quarter, beating the consensus estimate of $1.90 by $0.11. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. On average, research analysts anticipate that Allison Transmission will post 9.06 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Citigroup reduced their price target on shares of Allison Transmission from $120.00 to $115.00 and set a “neutral” rating for the company in a research report on Wednesday, February 12th. Robert W. Baird upped their price target on shares of Allison Transmission from $103.00 to $108.00 and gave the company a “neutral” rating in a research report on Wednesday, October 30th. Oppenheimer increased their target price on shares of Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 30th. Bank of America increased their target price on shares of Allison Transmission from $67.00 to $77.00 and gave the stock an “underperform” rating in a research report on Wednesday, October 30th. Finally, The Goldman Sachs Group increased their target price on shares of Allison Transmission from $82.00 to $94.00 and gave the stock a “sell” rating in a research report on Thursday, December 12th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $100.75.

Insider Transactions at Allison Transmission

In other news, SVP John Coll sold 2,000 shares of the stock in a transaction on Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total transaction of $216,800.00. Following the transaction, the senior vice president now owns 6,420 shares in the company, valued at $695,928. This represents a 23.75 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO David S. Graziosi sold 5,326 shares of the stock in a transaction on Monday, November 25th. The stock was sold at an average price of $120.12, for a total transaction of $639,759.12. Following the transaction, the chief executive officer now owns 168,833 shares in the company, valued at approximately $20,280,219.96. This trade represents a 3.06 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 20,639 shares of company stock worth $2,448,077 in the last 90 days. 1.10% of the stock is owned by insiders.

Allison Transmission announced that its Board of Directors has approved a stock buyback plan on Thursday, February 20th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the auto parts company to reacquire up to 57.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.