Allison Transmission (NYSE:ALSN) Sets New 1-Year High After Earnings Beat

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) reached a new 52-week high during mid-day trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $140.00 and last traded at $130.3890, with a volume of 282 shares trading hands. The stock had previously closed at $131.23.

The auto parts company reported $2.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.10 by $0.47. Allison Transmission had a net margin of 14.88% and a return on equity of 37.93%. The company had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.38 billion. During the same period in the prior year, the company earned $2.23 earnings per share. The business’s quarterly revenue was up 83.6% compared to the same quarter last year.

Allison Transmission Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Monday, March 9th were issued a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a yield of 0.9%. This is a positive change from Allison Transmission’s previous quarterly dividend of $0.27. The ex-dividend date was Monday, March 9th. Allison Transmission’s dividend payout ratio is currently 15.83%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on ALSN. Oppenheimer upped their price target on shares of Allison Transmission from $115.00 to $135.00 and gave the company an “outperform” rating in a report on Tuesday, February 24th. Zacks Research cut shares of Allison Transmission from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 24th. Morgan Stanley upped their price target on shares of Allison Transmission from $109.00 to $117.00 and gave the company an “equal weight” rating in a report on Monday, March 16th. JPMorgan Chase & Co. upped their price target on shares of Allison Transmission from $87.00 to $115.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. Finally, Weiss Ratings cut shares of Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $114.13.

Insider Buying and Selling at Allison Transmission

In related news, insider Eric C. Scroggins sold 1,313 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $114.40, for a total value of $150,207.20. Following the completion of the sale, the insider owned 17,654 shares in the company, valued at approximately $2,019,617.60. This trade represents a 6.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Allison Transmission

Hedge funds have recently made changes to their positions in the stock. Millstone Evans Group LLC bought a new stake in shares of Allison Transmission in the first quarter valued at about $26,000. Cedar Mountain Advisors LLC acquired a new position in Allison Transmission in the first quarter worth about $27,000. Rossby Financial LCC raised its position in Allison Transmission by 107.0% in the third quarter. Rossby Financial LCC now owns 296 shares of the auto parts company’s stock worth $25,000 after purchasing an additional 153 shares in the last quarter. Larson Financial Group LLC raised its position in Allison Transmission by 536.7% in the fourth quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company’s stock worth $31,000 after purchasing an additional 263 shares in the last quarter. Finally, Transamerica Financial Advisors LLC raised its position in Allison Transmission by 2,112.5% in the fourth quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company’s stock worth $35,000 after purchasing an additional 338 shares in the last quarter. Institutional investors own 96.90% of the company’s stock.

Allison Transmission Price Performance

The company has a quick ratio of 4.17, a current ratio of 4.85 and a debt-to-equity ratio of 1.55. The stock has a market cap of $10.60 billion, a price-to-earnings ratio of 19.82, a price-to-earnings-growth ratio of 0.77 and a beta of 1.01. The company’s 50-day moving average is $122.10 and its 200-day moving average is $106.13.

About Allison Transmission

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.