Allison Transmission (NYSE:ALSN) Stock Rated Buy in New Coverage at Freedom Broker

Research analysts at Freedom Broker assumed coverage on shares of Allison Transmission (NYSE:ALSN) in a research note issued to investors on Friday, Benzinga reports. The firm set a “buy” rating and a $144.00 price target on the auto parts company’s stock. Freedom Broker’s price target suggests a potential upside of 21.89% from the company’s current price.

Several other brokerages have also recently commented on ALSN. Weiss Ratings raised Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Morgan Stanley boosted their target price on shares of Allison Transmission from $126.00 to $130.00 and gave the company an “equal weight” rating in a research note on Friday, July 17th. JPMorgan Chase & Co. boosted their target price on Allison Transmission from $140.00 to $145.00 and gave the company a “neutral” rating in a research note on Monday, July 13th. Finally, Citigroup reduced their target price on Allison Transmission from $135.00 to $125.00 and set a “neutral” rating for the company in a report on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $133.00.

Allison Transmission Stock Performance

NYSE ALSN traded up $1.86 during trading hours on Friday, reaching $118.14. The company’s stock had a trading volume of 103,599 shares, compared to its average volume of 939,678. The company has a current ratio of 1.81, a quick ratio of 1.17 and a debt-to-equity ratio of 2.07. The business has a 50-day simple moving average of $122.52 and a 200 day simple moving average of $120.27. Allison Transmission has a 52 week low of $76.01 and a 52 week high of $137.62. The stock has a market cap of $9.76 billion, a PE ratio of 18.81, a PEG ratio of 0.59 and a beta of 0.99.

Allison Transmission (NYSE:ALSN) last posted its earnings results on Monday, August 3rd. The auto parts company reported $2.73 EPS for the quarter, topping the consensus estimate of $2.48 by $0.25. Allison Transmission had a net margin of 12.02% and a return on equity of 38.18%. The firm had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.50 billion. During the same quarter in the prior year, the firm earned $2.29 EPS. Allison Transmission’s quarterly revenue was up 92.4% on a year-over-year basis. Equities research analysts predict that Allison Transmission will post 10.27 earnings per share for the current fiscal year.

Insider Activity at Allison Transmission

In other news, insider Eric Scroggins sold 1,050 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $125.00, for a total value of $131,250.00. Following the transaction, the insider directly owned 16,604 shares of the company’s stock, valued at $2,075,500. The trade was a 5.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David Graziosi sold 26,708 shares of Allison Transmission stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $132.97, for a total value of $3,551,362.76. Following the completion of the transaction, the chief executive officer directly owned 304,843 shares of the company’s stock, valued at $40,534,973.71. This represents a 8.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Allison Transmission

Several large investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Allison Transmission in the 2nd quarter valued at about $448,232,000. Stockbridge Partners LLC bought a new stake in Allison Transmission in the second quarter valued at approximately $169,108,000. Norges Bank bought a new stake in Allison Transmission in the fourth quarter valued at approximately $115,674,000. First Trust Advisors LP grew its stake in Allison Transmission by 85.2% in the first quarter. First Trust Advisors LP now owns 2,026,603 shares of the auto parts company’s stock valued at $237,234,000 after acquiring an additional 932,201 shares during the period. Finally, Wasatch Advisors LP increased its holdings in shares of Allison Transmission by 105.7% in the second quarter. Wasatch Advisors LP now owns 1,510,496 shares of the auto parts company’s stock worth $170,293,000 after acquiring an additional 776,169 shares in the last quarter. Institutional investors and hedge funds own 96.90% of the company’s stock.

About Allison Transmission

Allison Transmission Holdings, Inc designs and manufactures fully automatic transmissions and propulsion solutions for commercial and defense vehicles. Its products are used in a broad range of applications, including refuse and construction trucks, buses, distribution vehicles, emergency vehicles, motorhomes, and off-highway equipment.

The company’s portfolio includes conventional automatic transmissions, hybrid-electric propulsion systems, and electric axles and other solutions intended to support vehicle electrification.