Zacks Investment Research upgraded shares of Allison Transmission (NYSE:ALSN) from a hold rating to a strong-buy rating in a research note issued to investors on Wednesday morning. Zacks Investment Research currently has $45.00 target price on the auto parts company’s stock.
According to Zacks, “Allison Transmission Holdings, Inc. is engaged in the manufacturing of fully-automatic transmissions for medium- and heavy-duty commercial vehicles, medium- and heavy-tactical U.S. military vehicles and hybrid-propulsion systems for transit buses. The Company’s products are used in a variety of applications including on-highway trucks, buses, motorhomes, off-highway vehicles and equipment and military vehicles. Allison Transmission Holdings, Inc. is headquartered in Indianapolis, Indiana. “
Other equities research analysts have also issued reports about the stock. Bank of America reaffirmed a buy rating on shares of Allison Transmission in a report on Thursday, November 23rd. Royal Bank of Canada reaffirmed a buy rating on shares of Allison Transmission in a report on Thursday, November 2nd. Citigroup lifted their price target on shares of Allison Transmission from $45.00 to $50.00 and gave the company a buy rating in a report on Thursday, November 2nd. Robert W. Baird reaffirmed a buy rating and set a $52.00 price target on shares of Allison Transmission in a report on Wednesday, November 1st. Finally, William Blair reaffirmed a buy rating on shares of Allison Transmission in a report on Tuesday, February 13th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating, six have given a buy rating and two have given a strong buy rating to the stock. The stock presently has a consensus rating of Hold and a consensus target price of $43.82.
Allison Transmission (NYSE ALSN) opened at $39.15 on Wednesday. The company has a quick ratio of 1.15, a current ratio of 1.52 and a debt-to-equity ratio of 3.68. Allison Transmission has a 1-year low of $32.93 and a 1-year high of $45.69. The company has a market cap of $5,496.21, a PE ratio of 14.48, a price-to-earnings-growth ratio of 1.18 and a beta of 1.15.
Allison Transmission (NYSE:ALSN) last released its earnings results on Wednesday, February 14th. The auto parts company reported $1.51 EPS for the quarter, beating the consensus estimate of $0.62 by $0.89. Allison Transmission had a net margin of 22.28% and a return on equity of 60.52%. The firm had revenue of $588.00 million for the quarter, compared to analyst estimates of $576.57 million. During the same period last year, the firm earned $0.36 EPS. The business’s quarterly revenue was up 25.4% compared to the same quarter last year. equities research analysts predict that Allison Transmission will post 3.33 earnings per share for the current year.
Allison Transmission announced that its board has approved a stock repurchase program on Wednesday, November 8th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the auto parts company to purchase shares of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 28th. Investors of record on Tuesday, February 20th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, February 16th. This represents a $0.60 annualized dividend and a yield of 1.53%. Allison Transmission’s dividend payout ratio is presently 17.60%.
In related news, SVP Michael Dick sold 4,400 shares of Allison Transmission stock in a transaction that occurred on Tuesday, December 12th. The shares were sold at an average price of $42.03, for a total transaction of $184,932.00. Following the sale, the senior vice president now directly owns 39,131 shares in the company, valued at approximately $1,644,675.93. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director James A. Star sold 135,460 shares of Allison Transmission stock in a transaction that occurred on Wednesday, January 17th. The stock was sold at an average price of $44.50, for a total transaction of $6,027,970.00. Following the sale, the director now owns 41,450 shares in the company, valued at $1,844,525. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 3,405,629 shares of company stock worth $149,746,270. 7.90% of the stock is owned by corporate insiders.
Large investors have recently bought and sold shares of the stock. Group One Trading L.P. acquired a new stake in Allison Transmission during the 3rd quarter worth approximately $105,000. American International Group Inc. acquired a new stake in Allison Transmission during the 4th quarter worth approximately $127,000. CIBC Asset Management Inc acquired a new stake in Allison Transmission during the 4th quarter worth approximately $220,000. The Manufacturers Life Insurance Company boosted its position in Allison Transmission by 12.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 5,349 shares of the auto parts company’s stock worth $201,000 after buying an additional 607 shares during the period. Finally, Cambridge Investment Research Advisors Inc. acquired a new position in shares of Allison Transmission in the 3rd quarter worth approximately $203,000.
About Allison Transmission
Allison Transmission Holdings, Inc and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company’s transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked).
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