Allison Transmission (NYSE:ALSN) Sets New 52-Week High – Should You Buy?

Allison Transmission Holdings, Inc. (NYSE:ALSN)’s stock price hit a new 52-week high during trading on Monday . The company traded as high as $122.08 and last traded at $121.79, with a volume of 29807 shares trading hands. The stock had previously closed at $119.65.

Analyst Ratings Changes

Several brokerages recently commented on ALSN. Oppenheimer upped their price target on shares of Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 30th. Citigroup upped their price objective on Allison Transmission from $115.00 to $125.00 and gave the stock a “neutral” rating in a report on Wednesday, November 20th. The Goldman Sachs Group lifted their target price on Allison Transmission from $72.00 to $82.00 and gave the company a “sell” rating in a report on Friday, November 1st. Bank of America upped their price target on Allison Transmission from $67.00 to $77.00 and gave the stock an “underperform” rating in a research note on Wednesday, October 30th. Finally, StockNews.com raised Allison Transmission from a “buy” rating to a “strong-buy” rating in a research note on Thursday, October 10th. Two analysts have rated the stock with a sell rating, four have issued a hold rating, two have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $94.25.

Allison Transmission Trading Up 0.7 %

The company has a current ratio of 2.83, a quick ratio of 2.25 and a debt-to-equity ratio of 1.48. The company has a market cap of $10.43 billion, a price-to-earnings ratio of 14.56, a price-to-earnings-growth ratio of 2.12 and a beta of 0.98. The firm has a 50-day moving average price of $104.48 and a 200 day moving average price of $89.16.

Allison Transmission (NYSE:ALSN) last announced its quarterly earnings data on Tuesday, October 29th. The auto parts company reported $2.27 earnings per share for the quarter, beating analysts’ consensus estimates of $2.01 by $0.26. The business had revenue of $824.00 million during the quarter, compared to the consensus estimate of $790.08 million. Allison Transmission had a net margin of 22.66% and a return on equity of 51.13%. The company’s revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.76 EPS. As a group, sell-side analysts forecast that Allison Transmission Holdings, Inc. will post 8.21 EPS for the current year.

Allison Transmission Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Shareholders of record on Monday, November 18th will be paid a $0.25 dividend. The ex-dividend date is Monday, November 18th. This represents a $1.00 annualized dividend and a dividend yield of 0.83%. Allison Transmission’s payout ratio is currently 12.18%.

Insider Buying and Selling at Allison Transmission

In related news, VP Thomas Eifert sold 1,741 shares of Allison Transmission stock in a transaction dated Monday, October 7th. The stock was sold at an average price of $100.00, for a total transaction of $174,100.00. Following the transaction, the vice president now directly owns 9,601 shares of the company’s stock, valued at $960,100. The trade was a 15.35 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP John Coll sold 2,000 shares of the company’s stock in a transaction dated Thursday, August 29th. The shares were sold at an average price of $90.98, for a total transaction of $181,960.00. Following the completion of the sale, the senior vice president now directly owns 12,420 shares of the company’s stock, valued at $1,129,971.60. The trade was a 13.87 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 7,741 shares of company stock valued at $781,520 in the last quarter. Corporate insiders own 0.93% of the company’s stock.

Hedge Funds Weigh In On Allison Transmission

A number of hedge funds have recently modified their holdings of ALSN. Harbor Capital Advisors Inc. increased its position in shares of Allison Transmission by 238.0% in the second quarter. Harbor Capital Advisors Inc. now owns 16,191 shares of the auto parts company’s stock worth $1,229,000 after acquiring an additional 11,401 shares in the last quarter. Janus Henderson Group PLC raised its stake in Allison Transmission by 25.3% during the 1st quarter. Janus Henderson Group PLC now owns 56,998 shares of the auto parts company’s stock valued at $4,627,000 after purchasing an additional 11,495 shares during the period. Artemis Investment Management LLP purchased a new stake in shares of Allison Transmission in the second quarter valued at $2,252,000. CWA Asset Management Group LLC acquired a new stake in shares of Allison Transmission in the third quarter worth $947,000. Finally, Oppenheimer & Co. Inc. grew its holdings in shares of Allison Transmission by 133.0% during the third quarter. Oppenheimer & Co. Inc. now owns 13,917 shares of the auto parts company’s stock valued at $1,337,000 after buying an additional 7,944 shares in the last quarter. 96.90% of the stock is currently 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.