Allison Transmission (NYSE:ALSN) Shares Gap Up – Still a Buy?

Allison Transmission Holdings, Inc. (NYSE:ALSN) gapped up prior to trading on Wednesday . The stock had previously closed at $112.74, but opened at $119.55. Allison Transmission shares last traded at $118.87, with a volume of 240,157 shares.

Analysts Set New Price Targets

A number of equities analysts have issued reports on ALSN shares. Weiss Ratings downgraded Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. Zacks Research downgraded Allison Transmission from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 24th. Morgan Stanley increased their target price on Allison Transmission from $117.00 to $126.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 13th. Citigroup lifted their price target on shares of Allison Transmission from $130.00 to $135.00 and gave the company a “neutral” rating in a research note on Monday, April 13th. Finally, Wells Fargo & Company boosted their price target on shares of Allison Transmission from $127.00 to $137.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $127.17.

Allison Transmission Price Performance

The company has a debt-to-equity ratio of 2.23, a quick ratio of 1.18 and a current ratio of 1.85. The stock has a market capitalization of $10.02 billion, a PE ratio of 18.80, a price-to-earnings-growth ratio of 0.62 and a beta of 0.94. The stock’s 50 day moving average is $120.08 and its two-hundred day moving average is $115.24.

Allison Transmission (NYSE:ALSN) last posted its quarterly earnings data on Monday, May 4th. The auto parts company reported $2.57 EPS for the quarter, topping the consensus estimate of $2.10 by $0.47. The company had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.38 billion. Allison Transmission had a return on equity of 37.50% and a net margin of 14.88%.Allison Transmission’s quarterly revenue was up 83.6% on a year-over-year basis. During the same period in the previous year, the business earned $2.23 EPS. On average, equities analysts anticipate that Allison Transmission Holdings, Inc. will post 9.86 EPS for the current fiscal year.

Allison Transmission Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Monday, May 18th were given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Monday, May 18th. Allison Transmission’s payout ratio is presently 18.04%.

Insider Buying and Selling

In other Allison Transmission news, CFO Scott A. Mell sold 2,270 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $125.00, for a total value of $283,750.00. Following the transaction, the chief financial officer owned 1,053 shares in the company, valued at approximately $131,625. This trade represents a 68.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Allison Transmission

A number of hedge funds have recently modified their holdings of the business. BankChampaign National Association acquired a new position in Allison Transmission during the first quarter worth about $812,000. Bank of America Corp DE raised its holdings in Allison Transmission by 12.3% in the 1st quarter. Bank of America Corp DE now owns 1,100,162 shares of the auto parts company’s stock valued at $128,785,000 after acquiring an additional 120,335 shares during the last quarter. Edgestream Partners L.P. raised its holdings in Allison Transmission by 18.9% in the 1st quarter. Edgestream Partners L.P. now owns 30,042 shares of the auto parts company’s stock valued at $3,517,000 after acquiring an additional 4,769 shares during the last quarter. Janus Henderson Group PLC lifted its stake in Allison Transmission by 32.7% in the 1st quarter. Janus Henderson Group PLC now owns 491,105 shares of the auto parts company’s stock worth $57,530,000 after purchasing an additional 121,129 shares in the last quarter. Finally, Bull Harbor Capital LLC purchased a new position in Allison Transmission in the 1st quarter worth approximately $297,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Allison Transmission Company Profile

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.