Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Consensus Rating of "Hold" from Analysts

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) has been assigned an average rating of "Hold" from the eight research firms that are currently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $100.75.

Several brokerages recently issued reports on ALSN. Morgan Stanley boosted their price target on Allison Transmission from $110.00 to $112.00 and gave the company an "equal weight" rating in a research note on Tuesday, December 17th. The Goldman Sachs Group upped their target price on Allison Transmission from $82.00 to $94.00 and gave the company a "sell" rating in a research report on Thursday, December 12th. Citigroup decreased their price target on Allison Transmission from $120.00 to $115.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 12th. Finally, StockNews.com cut shares of Allison Transmission from a "strong-buy" rating to a "buy" rating in a research report on Thursday, February 13th.

Insider Activity

In related news, SVP John Coll sold 2,000 shares of the firm's stock in a transaction on Tuesday, December 31st. The stock was sold at an average price of $108.40, for a total transaction of $216,800.00. Following the sale, the senior vice president now owns 6,420 shares of the company's stock, valued at $695,928. This trade represents a 23.75 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 1.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Allison Transmission

Several large investors have recently bought and sold shares of the company. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in Allison Transmission in the 4th quarter valued at approximately $13,550,000. Jefferies Financial Group Inc. bought a new stake in Allison Transmission during the 4th quarter worth approximately $901,000. Vermillion Wealth Management Inc. acquired a new position in Allison Transmission in the 4th quarter valued at approximately $31,000. Forum Financial Management LP bought a new position in shares of Allison Transmission during the fourth quarter valued at $238,000. Finally, Public Employees Retirement System of Ohio lifted its holdings in shares of Allison Transmission by 35.0% during the fourth quarter. Public Employees Retirement System of Ohio now owns 57,788 shares of the auto parts company's stock worth $6,245,000 after purchasing an additional 14,994 shares during the period. 96.90% of the stock is currently owned by institutional investors.

Allison Transmission Stock Performance

Shares of NYSE ALSN traded down $3.33 during trading hours on Monday, reaching $98.42. 619,110 shares of the stock were exchanged, compared to its average volume of 639,595. The stock's fifty day simple moving average is $110.50 and its 200 day simple moving average is $105.18. The firm has a market capitalization of $8.42 billion, a price-to-earnings ratio of 11.84 and a beta of 1.00. Allison Transmission has a 52 week low of $71.49 and a 52 week high of $122.53. The company has a debt-to-equity ratio of 1.45, a quick ratio of 2.42 and a current ratio of 3.04.

Allison Transmission (NYSE:ALSN - Get Free Report) last posted its earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share for the quarter, topping analysts' consensus estimates of $1.90 by $0.11. Allison Transmission had a return on equity of 47.95% and a net margin of 22.67%. Sell-side analysts predict that Allison Transmission will post 9.06 EPS for the current year.

Allison Transmission declared that its board has approved a share repurchase program on Thursday, February 20th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the auto parts company to reacquire up to 57.1% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Allison Transmission Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Monday, March 3rd will be given a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.10%. The ex-dividend date of this dividend is Monday, March 3rd. This is a boost from Allison Transmission's previous quarterly dividend of $0.25. Allison Transmission's payout ratio is currently 13.00%.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.