Allison Transmission (NYSE:ALSN) Stock Rating Raised to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Allison Transmission (NYSE:ALSN) from a hold rating to a strong-buy rating in a report released on Monday morning,Zacks reports.

Several other equities analysts have also recently commented on ALSN. JPMorgan Chase & Co. boosted their price target on shares of Allison Transmission from $140.00 to $145.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Morgan Stanley lifted their price objective on Allison Transmission from $126.00 to $130.00 and gave the company an “equal weight” rating in a research report on Friday, July 17th. Citigroup lowered their target price on Allison Transmission from $135.00 to $125.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Freedom Broker initiated coverage on Allison Transmission in a research report on Friday, October 2nd. They issued a “buy” rating and a $144.00 target price on the stock. Finally, Weiss Ratings raised Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, August 11th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $133.00.

Allison Transmission Price Performance

Shares of ALSN opened at $114.70 on Monday. The company has a market capitalization of $9.47 billion, a price-to-earnings ratio of 18.24, a P/E/G ratio of 0.61 and a beta of 0.98. Allison Transmission has a fifty-two week low of $76.01 and a fifty-two week high of $137.62. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.81 and a quick ratio of 1.17. The business’s 50-day moving average is $122.19 and its 200-day moving average is $120.32.

Allison Transmission (NYSE:ALSN) last posted its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 EPS for the quarter, topping the consensus estimate of $2.48 by $0.25. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The business had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.50 billion. During the same period last year, the company posted $2.29 earnings per share. The firm’s quarterly revenue was up 92.4% compared to the same quarter last year. Equities research analysts expect that Allison Transmission will post 10.27 EPS for the current fiscal year.

Allison Transmission Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Friday, August 21st were issued a $0.29 dividend. The ex-dividend date was Friday, August 21st. This represents a $1.16 dividend on an annualized basis and a yield of 1.0%. Allison Transmission’s dividend payout ratio is currently 18.44%.

Insider Buying and Selling at Allison Transmission

In other Allison Transmission news, insider Eric Scroggins sold 1,050 shares of the stock in a transaction 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 transaction, the insider directly owned 16,604 shares of the company’s stock, valued at $2,075,500. This represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO David Graziosi sold 26,708 shares of the business’s stock in a transaction dated 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 sale, the chief executive officer directly owned 304,843 shares of the company’s stock, valued at $40,534,973.71. This represents a 8.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of Allison Transmission

A number of institutional investors and hedge funds have recently modified their holdings of the company. Millstone Evans Group LLC bought a new position in Allison Transmission in the 1st quarter worth $26,000. Cedar Mountain Advisors LLC bought a new stake in Allison Transmission during the first quarter valued at about $27,000. Cassaday & Co Wealth Management LLC bought a new stake in Allison Transmission during the first quarter valued at about $28,000. Persistent Asset Partners Ltd acquired a new stake in shares of Allison Transmission in the second quarter valued at about $43,000. Finally, Platinum Investment Management Ltd. acquired a new stake in shares of Allison Transmission in the fourth quarter valued at about $62,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc designs and manufactures fully automatic transmissions and propulsion solutions for commercial and defense vehicles. Its products are used in a broad range of applications, including refuse and construction trucks, buses, distribution vehicles, emergency vehicles, motorhomes, and off-highway equipment.

The company’s portfolio includes conventional automatic transmissions, hybrid-electric propulsion systems, and electric axles and other solutions intended to support vehicle electrification.