Zacks Investment Research cut shares of Allison Transmission (NYSE:ALSN) from a buy rating to a hold rating in a research note published on Monday, February 19th.
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 brokerages have also recently issued reports on ALSN. Bank of America cut Allison Transmission from a buy rating to a neutral rating and cut their target price for the stock from $52.00 to $48.00 in a report on Thursday, February 8th. JPMorgan Chase & Co. increased their target price on Allison Transmission from $39.00 to $41.00 and gave the stock a neutral rating in a report on Monday, October 30th. Royal Bank of Canada reiterated a buy rating on shares of Allison Transmission in a report on Thursday, November 2nd. Citigroup increased their target price on Allison Transmission from $45.00 to $50.00 and gave the stock a buy rating in a report on Thursday, November 2nd. Finally, Deutsche Bank set a $37.00 price objective on Allison Transmission and gave the company a sell rating in a research note on Wednesday, November 1st. Three analysts have rated the stock with a sell rating, five have given a hold rating, six have given a buy rating and two have given a strong buy rating to the company. Allison Transmission has a consensus rating of Hold and a consensus target price of $43.82.
Allison Transmission (NYSE:ALSN) last issued its earnings results on Wednesday, February 14th. The auto parts company reported $1.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.89. Allison Transmission had a return on equity of 40.63% and a net margin of 10.71%. The company had revenue of $588.00 million for the quarter, compared to analysts’ expectations of $576.57 million. During the same period last year, the business earned $0.36 EPS. Allison Transmission’s quarterly revenue was up 25.4% compared to the same quarter last year. analysts anticipate that Allison Transmission will post 3.44 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Wednesday, February 28th. Shareholders of record on Tuesday, February 20th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.58%. The ex-dividend date of this dividend was Friday, February 16th. Allison Transmission’s dividend payout ratio (DPR) is presently 25.53%.
In other news, Director James A. Star sold 135,460 shares of Allison Transmission stock in a transaction 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 directly owns 41,450 shares in the company, valued at approximately $1,844,525. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James A. Star sold 322,130 shares of Allison Transmission stock in a transaction on Friday, January 19th. The stock was sold at an average price of $44.49, for a total value of $14,331,563.70. Following the sale, the director now owns 41,450 shares in the company, valued at $1,844,110.50. The disclosure for this sale can be found here. Insiders have sold a total of 3,399,429 shares of company stock worth $149,485,666 over the last quarter. Company insiders own 7.90% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALSN. Bank of New York Mellon Corp increased its holdings in Allison Transmission by 2.3% in the 3rd quarter. Bank of New York Mellon Corp now owns 850,469 shares of the auto parts company’s stock worth $31,918,000 after acquiring an additional 18,797 shares during the last quarter. Strategic Global Advisors LLC purchased a new stake in Allison Transmission in the 3rd quarter worth about $298,000. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in Allison Transmission by 35.5% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,169 shares of the auto parts company’s stock worth $352,000 after acquiring an additional 2,139 shares during the last quarter. Public Employees Retirement Association of Colorado increased its holdings in Allison Transmission by 257.4% in the 4th quarter. Public Employees Retirement Association of Colorado now owns 15,011 shares of the auto parts company’s stock worth $647,000 after acquiring an additional 10,811 shares during the last quarter. Finally, Neuberger Berman Group LLC increased its holdings in Allison Transmission by 0.4% in the 3rd quarter. Neuberger Berman Group LLC now owns 2,732,598 shares of the auto parts company’s stock worth $102,554,000 after acquiring an additional 10,476 shares during the last quarter.
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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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