JPMorgan Chase & Co. Lowers Allison Transmission (NYSE:ALSN) Price Target to $98.00

Allison Transmission (NYSE:ALSN - Free Report) had its target price cut by JPMorgan Chase & Co. from $110.00 to $98.00 in a research note published on Friday,Benzinga reports. They currently have a neutral rating on the auto parts company's stock.

Other equities research analysts have also issued reports about the stock. Citigroup lowered their price objective on shares of Allison Transmission from $108.00 to $95.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 8th. 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 report on Tuesday, December 17th. StockNews.com downgraded Allison Transmission from a "buy" rating to a "hold" rating in a research report on Thursday, March 27th. Finally, The Goldman Sachs Group increased their target price on Allison Transmission from $82.00 to $94.00 and gave the company a "sell" rating in a report on Thursday, December 12th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the company's stock. Based on data from MarketBeat.com, Allison Transmission presently has an average rating of "Hold" and a consensus price target of $97.88.

Remove Ads

Allison Transmission Price Performance

Allison Transmission stock traded down $1.79 during mid-day trading on Friday, reaching $87.24. The company had a trading volume of 616,951 shares, compared to its average volume of 641,035. The stock's 50-day simple moving average is $97.54 and its 200-day simple moving average is $106.15. The company has a market capitalization of $7.44 billion, a P/E ratio of 10.50 and a beta of 0.95. The company has a debt-to-equity ratio of 1.45, a current ratio of 3.04 and a quick ratio of 2.42. Allison Transmission has a 1 year low of $71.49 and a 1 year high of $122.53.

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

Allison Transmission declared that its board has authorized a stock buyback program on Thursday, February 20th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the auto parts company to purchase up to 57.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Allison Transmission Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Monday, March 3rd were issued a dividend of $0.27 per share. This is a boost from Allison Transmission's previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $1.08 annualized dividend and a dividend yield of 1.24%. Allison Transmission's dividend payout ratio (DPR) is 13.00%.

Insiders Place Their Bets

In related news, VP Ryan A. Milburn sold 4,546 shares of the stock in a transaction on Thursday, March 6th. The stock was sold at an average price of $96.20, for a total value of $437,325.20. Following the transaction, the vice president now directly owns 14,138 shares of the company's stock, valued at approximately $1,360,075.60. This trade represents a 24.33 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP John Coll sold 1,788 shares of the business's stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $95.33, for a total value of $170,450.04. Following the sale, the senior vice president now directly owns 15,388 shares of the company's stock, valued at approximately $1,466,938.04. This trade represents a 10.41 % decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Allison Transmission

Several hedge funds and other institutional investors have recently modified their holdings of the company. Transce3nd LLC purchased a new position in Allison Transmission in the fourth quarter valued at approximately $25,000. SRH Advisors LLC acquired a new stake in shares of Allison Transmission in the fourth quarter worth $26,000. Kestra Investment Management LLC purchased a new position in shares of Allison Transmission in the 4th quarter valued at $30,000. Vermillion Wealth Management Inc. acquired a new position in shares of Allison Transmission during the 4th quarter valued at $31,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Allison Transmission during the 4th quarter worth $31,000. 96.90% of the stock is owned by institutional investors and hedge funds.

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.