Allison Transmission (NYSE:ALSN) Cut to "Hold" at StockNews.com

Allison Transmission (NYSE:ALSN - Get Free Report) was downgraded by analysts at StockNews.com from a "buy" rating to a "hold" rating in a note issued to investors on Thursday.

Several other equities analysts have also issued reports on ALSN. JPMorgan Chase & Co. cut their price objective on shares of Allison Transmission from $129.00 to $110.00 and set a "neutral" rating on the stock in a report on Tuesday, March 18th. Morgan Stanley raised their price objective on Allison Transmission from $110.00 to $112.00 and gave the company an "equal weight" rating in a research report on Tuesday, December 17th. Citigroup reduced their target price on shares of Allison Transmission from $120.00 to $115.00 and set a "neutral" rating for the company in a report on Wednesday, February 12th. Finally, The Goldman Sachs Group raised their price target on shares of Allison Transmission from $82.00 to $94.00 and gave the company a "sell" rating in a report on Thursday, December 12th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating to the company. According to data from MarketBeat.com, Allison Transmission has an average rating of "Hold" and an average target price of $101.13.

Allison Transmission Trading Down 1.3 %

ALSN stock traded down $1.26 during midday trading on Thursday, reaching $94.80. 212,236 shares of the company traded hands, compared to its average volume of 618,986. 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 business has a 50 day moving average of $105.16 and a 200-day moving average of $106.45. The firm has a market capitalization of $8.11 billion, a price-to-earnings ratio of 11.37 and a beta of 1.02. Allison Transmission has a 52-week low of $71.49 and a 52-week high of $122.53.

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Allison Transmission (NYSE:ALSN - Get Free Report) last posted 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 return on equity of 47.95% and a net margin of 22.67%. As a group, sell-side analysts expect that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In related news, VP Ryan A. Milburn sold 4,546 shares of the stock in a transaction that occurred on Thursday, March 6th. The shares were 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP John Coll sold 2,000 shares of the business's stock in a transaction that occurred on Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total value of $216,800.00. Following the completion of the sale, the senior vice president now directly owns 6,420 shares in the company, valued at approximately $695,928. The trade was a 23.75 % decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. DGS Capital Management LLC boosted its position in Allison Transmission by 2.5% in the 4th quarter. DGS Capital Management LLC now owns 3,424 shares of the auto parts company's stock valued at $370,000 after buying an additional 84 shares during the period. Wealth Enhancement Advisory Services LLC raised its stake in Allison Transmission by 0.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 15,370 shares of the auto parts company's stock valued at $1,661,000 after buying an additional 100 shares in the last quarter. Arizona State Retirement System lifted its stake in Allison Transmission by 0.4% during the fourth quarter. Arizona State Retirement System now owns 25,289 shares of the auto parts company's stock worth $2,733,000 after purchasing an additional 100 shares during the last quarter. Vident Advisory LLC boosted its holdings in shares of Allison Transmission by 1.0% in the 4th quarter. Vident Advisory LLC now owns 10,182 shares of the auto parts company's stock valued at $1,100,000 after buying an additional 102 shares in the last quarter. Finally, Amalgamated Bank grew its stake in Allison Transmission by 1.6% during the 4th quarter. Amalgamated Bank now owns 6,381 shares of the auto parts company's stock worth $690,000 after buying an additional 103 shares during the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

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.