Allison Transmission (NYSE:ALSN) Sets New 12-Month High – Should You Buy?

Allison Transmission Holdings, Inc. (NYSE:ALSN)’s stock price reached a new 52-week high during mid-day trading on Monday . The company traded as high as $126.37 and last traded at $126.14, with a volume of 283406 shares trading hands. The stock had previously closed at $125.30.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Zacks Research raised Allison Transmission from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. Oppenheimer lifted their price target on shares of Allison Transmission from $115.00 to $135.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 24th. Raymond James Financial boosted their price target on shares of Allison Transmission from $110.00 to $115.00 and gave the stock a “strong-buy” rating in a report on Monday, December 22nd. Morgan Stanley raised their price objective on shares of Allison Transmission from $97.00 to $109.00 and gave the company an “equal weight” rating in a report on Friday, January 23rd. Finally, Wells Fargo & Company lifted their price objective on shares of Allison Transmission from $98.00 to $127.00 and gave the stock an “equal weight” rating in a research report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Allison Transmission has an average rating of “Hold” and a consensus target price of $111.11.

Allison Transmission Price Performance

The firm has a market capitalization of $10.52 billion, a PE ratio of 17.33, a P/E/G ratio of 0.82 and a beta of 0.97. The company has a current ratio of 4.85, a quick ratio of 4.17 and a debt-to-equity ratio of 1.55. The company has a fifty day moving average price of $109.89 and a two-hundred day moving average price of $94.94.

Allison Transmission Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Monday, March 9th will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Monday, March 9th. This is an increase from Allison Transmission’s previous quarterly dividend of $0.27. Allison Transmission’s payout ratio is 15.83%.

Insider Activity

In related news, SVP John Coll sold 1,791 shares of the business’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $98.79, for a total value of $176,932.89. Following the transaction, the senior vice president owned 10,021 shares in the company, valued at $989,974.59. The trade was a 15.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 1.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Inscription Capital LLC boosted its position in shares of Allison Transmission by 0.7% during the 4th quarter. Inscription Capital LLC now owns 14,337 shares of the auto parts company’s stock worth $1,404,000 after purchasing an additional 95 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in Allison Transmission by 16.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 732 shares of the auto parts company’s stock worth $72,000 after buying an additional 105 shares during the period. Villanova Investment Management Co LLC increased its holdings in Allison Transmission by 0.4% in the fourth quarter. Villanova Investment Management Co LLC now owns 26,089 shares of the auto parts company’s stock valued at $2,554,000 after buying an additional 106 shares in the last quarter. Xponance LLC lifted its position in shares of Allison Transmission by 2.0% during the 4th quarter. Xponance LLC now owns 5,535 shares of the auto parts company’s stock valued at $542,000 after acquiring an additional 107 shares during the period. Finally, Kathmere Capital Management LLC boosted its stake in shares of Allison Transmission by 4.6% during the 4th quarter. Kathmere Capital Management LLC now owns 2,643 shares of the auto parts company’s stock worth $259,000 after acquiring an additional 116 shares in the last quarter. Hedge funds and other institutional investors own 96.90% of the company’s stock.

Allison Transmission Company Profile

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.