Allison Transmission (NYSE:ALSN) Stock Price Expected to Rise, The Goldman Sachs Group Analyst Says

Allison Transmission (NYSE:ALSN) had its price objective raised by The Goldman Sachs Group from $80.00 to $90.00 in a research note released on Tuesday morning,Benzinga reports. The Goldman Sachs Group currently has a sell rating on the auto parts company’s stock.

Other equities analysts also recently issued research reports about the stock. Citigroup decreased their target price on shares of Allison Transmission from $108.00 to $95.00 and set a “neutral” rating for the company in a research note on Tuesday, April 8th. Wall Street Zen upgraded shares of Allison Transmission from a “hold” rating to a “buy” rating in a report on Monday, May 12th. Raymond James lowered their target price on shares of Allison Transmission from $115.00 to $110.00 and set an “outperform” rating for the company in a report on Monday, April 14th. JPMorgan Chase & Co. lowered their target price 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, Morgan Stanley lifted their target price on shares of Allison Transmission from $94.00 to $100.00 and gave the company an “equal weight” rating in a report on Tuesday, May 6th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $98.13.

Allison Transmission Price Performance

Shares of Allison Transmission stock opened at $104.64 on Tuesday. The firm has a market cap of $8.82 billion, a PE ratio of 12.59 and a beta of 0.97. Allison Transmission has a 12-month low of $71.49 and a 12-month high of $122.53. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45. The company’s fifty day simple moving average is $95.76 and its two-hundred day simple moving average is $105.05.

Allison Transmission (NYSE:ALSN) last posted its earnings results on Thursday, May 1st. The auto parts company reported $2.23 EPS for the quarter, topping the consensus estimate of $1.97 by $0.26. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. The firm had revenue of $766.00 million during the quarter, compared to analysts’ expectations of $792.18 million. During the same period last year, the company posted $1.90 EPS. The company’s quarterly revenue was down 2.9% compared to the same quarter last year. As a group, equities analysts expect that Allison Transmission will post 9.06 EPS for the current year.

Allison Transmission declared that its Board of Directors has authorized a share 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 repurchase up to 57.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Allison Transmission Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 30th. Investors of record on Monday, May 19th will be issued a $0.27 dividend. The ex-dividend date of this dividend is Monday, May 19th. This represents a $1.08 dividend on an annualized basis and a yield of 1.03%. Allison Transmission’s payout ratio is currently 12.50%.

Insider Buying and Selling

In other news, SVP John Coll sold 1,788 shares of the business’s stock in a transaction on Tuesday, April 1st. The shares were 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 owns 15,388 shares of the company’s stock, valued at $1,466,938.04. The trade was a 10.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Ryan A. Milburn sold 3,412 shares of the company’s stock in a transaction on Wednesday, May 21st. The stock was sold at an average price of $105.24, for a total transaction of $359,078.88. Following the completion of the transaction, the vice president now directly owns 11,924 shares of the company’s stock, valued at $1,254,881.76. This represents a 22.25% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 9,746 shares of company stock worth $966,854 in the last three months. Insiders own 1.20% of the company’s stock.

Institutional Trading of Allison Transmission

Hedge funds have recently made changes to their positions in the business. Barclays PLC grew its stake in Allison Transmission by 23.4% in the 3rd quarter. Barclays PLC now owns 61,449 shares of the auto parts company’s stock worth $5,902,000 after acquiring an additional 11,666 shares in the last quarter. Atomi Financial Group Inc. purchased a new position in shares of Allison Transmission during the fourth quarter worth $224,000. Janney Montgomery Scott LLC increased its holdings in Allison Transmission by 0.6% in the fourth quarter. Janney Montgomery Scott LLC now owns 73,000 shares of the auto parts company’s stock valued at $7,888,000 after buying an additional 438 shares in the last quarter. Blue Trust Inc. increased its holdings in Allison Transmission by 30.5% in the fourth quarter. Blue Trust Inc. now owns 3,750 shares of the auto parts company’s stock valued at $405,000 after buying an additional 876 shares in the last quarter. Finally, KBC Group NV grew its position in shares of Allison Transmission by 56.2% in the fourth quarter. KBC Group NV now owns 3,469 shares of the auto parts company’s stock valued at $375,000 after purchasing an additional 1,248 shares during the period. 96.90% of the stock is currently owned by hedge funds and other institutional investors.

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.