Allison Transmission Holdings, Inc. (NYSE:ALSN) Declares Dividend Increase – $0.27 Per Share

Allison Transmission Holdings, Inc. (NYSE:ALSN) announced a quarterly dividend on Thursday, February 20th, RTT News reports. Stockholders of record on Monday, March 3rd will be paid a dividend of 0.27 per share by the auto parts company on Friday, March 14th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.06%. This is a boost from Allison Transmission’s previous quarterly dividend of $0.25.

Allison Transmission has raised its dividend by an average of 9.6% per year over the last three years. Allison Transmission has a payout ratio of 9.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Allison Transmission to earn $10.06 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 9.9%.

Allison Transmission Stock Performance

Shares of Allison Transmission stock opened at $102.34 on Friday. The firm has a market cap of $8.75 billion, a PE ratio of 12.31 and a beta of 1.00. The firm’s 50-day simple moving average is $111.81 and its 200-day simple moving average is $104.21. The company has a debt-to-equity ratio of 1.45, a quick ratio of 2.42 and a current ratio of 3.04. Allison Transmission has a 1 year low of $69.80 and a 1 year high of $122.53.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings data on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share for the quarter, topping the consensus estimate of $1.90 by $0.11. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. Equities analysts forecast that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Allison Transmission announced that its board has authorized a stock repurchase program on Thursday, February 20th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the auto parts company to buy up to 57.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on ALSN shares. StockNews.com lowered shares of Allison Transmission from a “strong-buy” rating to a “buy” rating in a research note on Thursday, February 13th. Oppenheimer increased their price objective on shares of Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Robert W. Baird upped their target price on shares of Allison Transmission from $103.00 to $108.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 30th. Bank of America upped their target price on shares of Allison Transmission from $67.00 to $77.00 and gave the stock an “underperform” rating in a research report on Wednesday, October 30th. Finally, Citigroup decreased their target price on shares of Allison Transmission from $120.00 to $115.00 and set a “neutral” rating for the company in a research report on Wednesday, February 12th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $100.75.

Insider Activity

In other news, CEO David S. Graziosi sold 1,723 shares of the stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $120.26, for a total value of $207,207.98. Following the completion of the transaction, the chief executive officer now directly owns 168,833 shares in the company, valued at $20,303,856.58. This trade represents a 1.01 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP John Coll sold 2,000 shares of the stock in a transaction that occurred on Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total transaction of $216,800.00. Following the completion of the transaction, the senior vice president now owns 6,420 shares of the company’s stock, valued at $695,928. This trade represents a 23.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 20,639 shares of company stock worth $2,448,077 over the last three months. Corporate insiders own 1.10% 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.