Zacks Investment Research upgraded shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) from a hold rating to a buy rating in a report released on Friday, November 3rd. The firm currently has $49.00 price target 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. “
A number of other research analysts also recently weighed in on the company. Royal Bank Of Canada reissued a buy rating on shares of Allison Transmission Holdings in a research note on Thursday, November 2nd. Citigroup Inc. upped their price objective on shares of Allison Transmission Holdings from $45.00 to $50.00 and gave the company a buy rating in a research report on Thursday, November 2nd. Robert W. Baird restated a buy rating and issued a $52.00 price objective on shares of Allison Transmission Holdings in a research report on Wednesday, November 1st. Buckingham Research increased their price objective on shares of Allison Transmission Holdings from $36.00 to $42.00 and gave the stock a neutral rating in a research note on Wednesday, November 1st. Finally, Stifel Nicolaus raised their price objective on shares of Allison Transmission Holdings from $41.00 to $45.00 and gave the stock a hold rating in a research report on Wednesday, November 1st. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company’s stock. Allison Transmission Holdings presently has a consensus rating of Hold and an average price target of $43.40.
Allison Transmission Holdings (ALSN) opened at $42.27 on Friday. The company has a market capitalization of $6,138.24, a P/E ratio of 19.16, a PEG ratio of 1.74 and a beta of 1.24. The company has a quick ratio of 1.15, a current ratio of 1.50 and a debt-to-equity ratio of 4.57. Allison Transmission Holdings has a 1-year low of $30.44 and a 1-year high of $45.69.
Allison Transmission Holdings (NYSE:ALSN) last posted its quarterly earnings data on Monday, October 30th. The auto parts company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.27. Allison Transmission Holdings had a return on equity of 45.65% and a net margin of 16.34%. The firm had revenue of $595.00 million for the quarter, compared to the consensus estimate of $533.53 million. During the same quarter in the prior year, the business earned $0.27 EPS. The business’s revenue for the quarter was up 37.1% compared to the same quarter last year. research analysts anticipate that Allison Transmission Holdings will post 2.49 earnings per share for the current fiscal year.
Allison Transmission Holdings announced that its Board of Directors has approved a share buyback plan 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 plans are generally a sign that the company’s management believes its stock is undervalued.
The business also recently announced a quarterly dividend, which will be paid on Thursday, November 30th. Shareholders of record on Monday, November 20th will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 1.42%. The ex-dividend date of this dividend is Friday, November 17th. Allison Transmission Holdings’s payout ratio is 26.55%.
In other news, CFO David S. Graziosi sold 39,264 shares of the stock in a transaction on Wednesday, September 27th. The shares were sold at an average price of $37.23, for a total value of $1,461,798.72. Following the transaction, the chief financial officer now owns 233,387 shares of the company’s stock, valued at approximately $8,688,998.01. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Randall R. Kirk sold 7,541 shares of the stock in a transaction on Tuesday, September 5th. The stock was sold at an average price of $34.27, for a total transaction of $258,430.07. Following the completion of the transaction, the senior vice president now directly owns 84,494 shares in the company, valued at approximately $2,895,609.38. The disclosure for this sale can be found here. Corporate insiders own 7.90% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in ALSN. Old Mutual Global Investors UK Ltd. grew its holdings in shares of Allison Transmission Holdings by 394.0% during the 3rd quarter. Old Mutual Global Investors UK Ltd. now owns 1,777,252 shares of the auto parts company’s stock valued at $66,700,000 after purchasing an additional 1,417,467 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in Allison Transmission Holdings by 140.0% during the 2nd quarter. Goldman Sachs Group Inc. now owns 1,030,458 shares of the auto parts company’s stock valued at $38,652,000 after buying an additional 601,174 shares during the period. Renaissance Technologies LLC lifted its position in shares of Allison Transmission Holdings by 57.2% in the 2nd quarter. Renaissance Technologies LLC now owns 1,543,200 shares of the auto parts company’s stock worth $57,885,000 after purchasing an additional 561,334 shares during the period. APG Asset Management N.V. purchased a new stake in shares of Allison Transmission Holdings in the 3rd quarter worth about $19,846,000. Finally, Koch Industries Inc. purchased a new stake in shares of Allison Transmission Holdings in the 2nd quarter worth about $506,000.
Allison Transmission Holdings Company Profile
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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