Allison Transmission (NYSE:ALSN) Reaches New 1-Year High – Should You Buy?

Allison Transmission Holdings, Inc. (NYSE:ALSN)’s stock price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $100.80 and last traded at $100.10, with a volume of 99686 shares trading hands. The stock had previously closed at $99.80.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Robert W. Baird upped their target price on Allison Transmission from $87.00 to $90.00 and gave the stock a “neutral” rating in a research note on Friday, July 26th. Raymond James assumed coverage on Allison Transmission in a research report on Friday, June 28th. They set an “outperform” rating and a $85.00 price objective for the company. Citigroup lifted their target price on Allison Transmission from $97.00 to $109.00 and gave the company a “neutral” rating in a research report on Wednesday, October 9th. The Goldman Sachs Group increased their target price on shares of Allison Transmission from $63.00 to $72.00 and gave the stock a “sell” rating in a report on Monday, July 29th. Finally, StockNews.com raised shares of Allison Transmission from a “buy” rating to a “strong-buy” rating in a report on Thursday, October 10th. One research analyst has rated the stock with a sell rating, four have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $86.86.

Allison Transmission Price Performance

The company has a 50 day moving average price of $90.62 and a 200-day moving average price of $82.41. The company has a market cap of $8.60 billion, a price-to-earnings ratio of 13.32, a P/E/G ratio of 1.78 and a beta of 0.99. The company has a quick ratio of 2.19, a current ratio of 2.78 and a debt-to-equity ratio of 1.62.

Allison Transmission (NYSE:ALSN) last posted its quarterly earnings data on Thursday, July 25th. The auto parts company reported $2.13 earnings per share for the quarter, beating analysts’ consensus estimates of $2.04 by $0.09. The business had revenue of $816.00 million during the quarter, compared to the consensus estimate of $799.44 million. Allison Transmission had a return on equity of 52.18% and a net margin of 21.95%. Allison Transmission’s quarterly revenue was up 4.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.92 earnings per share. As a group, equities research analysts predict that Allison Transmission Holdings, Inc. will post 7.85 EPS for the current fiscal year.

Allison Transmission Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 30th. Stockholders of record on Monday, August 19th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, August 19th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.02%. Allison Transmission’s dividend payout ratio (DPR) is 13.35%.

Insider Activity at Allison Transmission

In other news, SVP John Coll sold 2,000 shares of the stock in a transaction on 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 in the company, valued at $1,129,971.60. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In other Allison Transmission news, VP Thomas Eifert sold 1,741 shares of Allison Transmission stock in a transaction that occurred on Monday, October 7th. The stock was sold at an average price of $100.00, for a total value of $174,100.00. Following the completion of the sale, the vice president now directly owns 9,601 shares in the company, valued at approximately $960,100. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP John Coll sold 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 29th. The stock was sold at an average price of $90.98, for a total transaction of $181,960.00. Following the sale, the senior vice president now directly owns 12,420 shares of the company’s stock, valued at approximately $1,129,971.60. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 5,741 shares of company stock worth $546,060 over the last ninety days. Insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Versant Capital Management Inc increased its stake in Allison Transmission by 1,200.0% in the second quarter. Versant Capital Management Inc now owns 364 shares of the auto parts company’s stock valued at $28,000 after purchasing an additional 336 shares in the last quarter. Triad Wealth Partners LLC acquired a new position in Allison Transmission during the 2nd quarter worth approximately $33,000. Fifth Third Bancorp boosted its holdings in Allison Transmission by 139.8% in the second quarter. Fifth Third Bancorp now owns 868 shares of the auto parts company’s stock worth $66,000 after acquiring an additional 506 shares in the last quarter. Quent Capital LLC boosted its holdings in Allison Transmission by 24.0% in the second quarter. Quent Capital LLC now owns 889 shares of the auto parts company’s stock worth $68,000 after acquiring an additional 172 shares in the last quarter. Finally, Covestor Ltd grew its stake in Allison Transmission by 307.2% in the first quarter. Covestor Ltd now owns 965 shares of the auto parts company’s stock valued at $78,000 after acquiring an additional 728 shares during the period. Institutional investors and hedge funds 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.