Convergence Investment Partners LLC Grows Stock Holdings in Allison Transmission Holdings, Inc. (NYSE:ALSN)

Convergence Investment Partners LLC boosted its holdings in shares of Allison Transmission Holdings, Inc. (NYSE:ALSN - Free Report) by 115.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 13,950 shares of the auto parts company's stock after acquiring an additional 7,479 shares during the period. Convergence Investment Partners LLC's holdings in Allison Transmission were worth $1,507,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. SRH Advisors LLC purchased a new stake in Allison Transmission during the 4th quarter valued at about $26,000. World Investment Advisors LLC purchased a new stake in shares of Allison Transmission in the 3rd quarter valued at approximately $29,000. Kestra Investment Management LLC purchased a new stake in shares of Allison Transmission in the 4th quarter valued at approximately $30,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Allison Transmission in the 4th quarter valued at approximately $31,000. Finally, Quarry LP grew its stake in shares of Allison Transmission by 46.7% in the 3rd quarter. Quarry LP now owns 358 shares of the auto parts company's stock valued at $34,000 after buying an additional 114 shares during the period. Hedge funds and other institutional investors own 96.90% of the company's stock.

Insiders Place Their Bets

In related news, CEO David S. Graziosi sold 11,590 shares of Allison Transmission stock in a transaction on Friday, November 29th. The shares were sold at an average price of $119.44, for a total transaction of $1,384,309.60. Following the sale, the chief executive officer now directly owns 168,833 shares in the company, valued at $20,165,413.52. This trade represents a 6.42 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP John Coll sold 2,000 shares of Allison Transmission 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 in the company, valued at $695,928. This represents a 23.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 20,639 shares of company stock worth $2,448,077 in the last ninety days. 1.10% of the stock is owned by corporate insiders.

Allison Transmission Trading Down 1.6 %

Shares of NYSE:ALSN traded down $1.60 during mid-day trading on Friday, reaching $100.76. 667,829 shares of the company were exchanged, compared to its average volume of 613,780. The firm has a market cap of $8.62 billion, a price-to-earnings ratio of 12.13 and a beta of 1.00. Allison Transmission Holdings, Inc. has a 1 year low of $71.35 and a 1 year high of $122.53. The company has a debt-to-equity ratio of 1.45, a current ratio of 3.04 and a quick ratio of 2.42. The firm's 50-day simple moving average is $111.81 and its 200 day simple moving average is $104.21.

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

Allison Transmission announced that its Board of Directors has approved a stock buyback program on Thursday, February 20th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to purchase up to 57.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors 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 issued a dividend of $0.27 per share. The ex-dividend date is Monday, March 3rd. This is a positive change from Allison Transmission's previous quarterly dividend of $0.25. This represents a $1.08 dividend on an annualized basis and a yield of 1.07%. Allison Transmission's dividend payout ratio is 12.03%.

Wall Street Analyst Weigh In

ALSN has been the subject of several analyst reports. Bank of America increased their price target on shares of Allison Transmission from $67.00 to $77.00 and gave the company an "underperform" rating in a research note on Wednesday, October 30th. The Goldman Sachs Group increased their price target on shares of Allison Transmission from $82.00 to $94.00 and gave the company a "sell" rating in a research note on Thursday, December 12th. Oppenheimer increased their price target on shares of Allison Transmission from $90.00 to $115.00 and gave the company an "outperform" rating in a research note on Wednesday, October 30th. Morgan Stanley increased their price target on shares of Allison Transmission from $110.00 to $112.00 and gave the company an "equal weight" rating in a research note on Tuesday, December 17th. Finally, Robert W. Baird increased their price target on shares of Allison Transmission from $103.00 to $108.00 and gave the company a "neutral" rating in a research note on Wednesday, October 30th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $100.75.

About Allison Transmission

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.