Morgan Stanley Cuts Allison Transmission (NYSE:ALSN) Price Target to $94.00

Allison Transmission (NYSE:ALSN - Get Free Report) had its price target reduced by analysts at Morgan Stanley from $112.00 to $94.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the auto parts company's stock. Morgan Stanley's price target suggests a potential upside of 9.40% from the company's previous close.

ALSN has been the subject of a number of other research reports. Citigroup lowered their target price on Allison Transmission from $108.00 to $95.00 and set a "neutral" rating for the company in a research note on Tuesday, April 8th. StockNews.com upgraded Allison Transmission from a "hold" rating to a "buy" rating in a research report on Friday, April 11th. Raymond James cut their target price on shares of Allison Transmission from $115.00 to $110.00 and set an "outperform" rating on the stock in a report on Monday, April 14th. JPMorgan Chase & Co. lowered their price target on shares of Allison Transmission from $110.00 to $98.00 and set a "neutral" rating for the company in a report on Friday, April 11th. Finally, Robert W. Baird cut their price target on shares of Allison Transmission from $123.00 to $100.00 and set a "neutral" rating on the stock in a report on Tuesday, April 15th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $97.88.

Allison Transmission Price Performance

NYSE:ALSN traded down $2.86 during mid-day trading on Wednesday, reaching $85.92. The stock had a trading volume of 593,168 shares, compared to its average volume of 643,484. Allison Transmission has a one year low of $71.49 and a one year 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. The firm has a 50 day moving average price of $95.97 and a two-hundred day moving average price of $106.04. The stock has a market capitalization of $7.32 billion, a P/E ratio of 10.34 and a beta of 0.95.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its quarterly earnings data on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share (EPS) for the quarter, beating 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%. As a group, analysts expect that Allison Transmission will post 9.06 earnings per share for the current year.

Allison Transmission declared that its Board of Directors has initiated a stock repurchase program on Thursday, February 20th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the auto parts company to buy up to 57.1% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its shares are undervalued.

Insider Activity

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

Hedge Funds Weigh In On Allison Transmission

Institutional investors and hedge funds have recently made changes to their positions in the business. FMR LLC grew its stake in shares of Allison Transmission by 1.9% in the 4th quarter. FMR LLC now owns 12,993,015 shares of the auto parts company's stock worth $1,404,025,000 after buying an additional 247,318 shares during the last quarter. Fuller & Thaler Asset Management Inc. increased its holdings in shares of Allison Transmission by 3.0% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,652,996 shares of the auto parts company's stock valued at $286,683,000 after acquiring an additional 76,840 shares in the last quarter. Loomis Sayles & Co. L P raised its position in shares of Allison Transmission by 301.1% in the 4th quarter. Loomis Sayles & Co. L P now owns 2,378,731 shares of the auto parts company's stock worth $257,046,000 after purchasing an additional 1,785,687 shares during the last quarter. Allianz Asset Management GmbH boosted its stake in Allison Transmission by 7.0% in the 4th quarter. Allianz Asset Management GmbH now owns 1,061,351 shares of the auto parts company's stock worth $114,690,000 after purchasing an additional 69,008 shares in the last quarter. Finally, Norges Bank purchased a new stake in Allison Transmission during the 4th quarter valued at about $108,916,000. Institutional investors own 96.90% of the company's stock.

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.