Allison Transmission (NYSE:ALSN) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Allison Transmission (NYSE:ALSN) had its target price hoisted by investment analysts at Morgan Stanley from $132.00 to $139.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has an “equal weight” rating on the auto parts company’s stock. Morgan Stanley‘s price target would suggest a potential upside of 15.49% from the stock’s previous close.

ALSN has been the topic of a number of other reports. Citigroup upgraded shares of Allison Transmission from a “neutral” rating to a “buy” rating and set a $135.00 target price on the stock in a research report on Monday, October 12th. JPMorgan Chase & Co. lowered their price target on shares of Allison Transmission from $145.00 to $142.00 and set a “neutral” rating for the company in a report on Thursday, October 8th. Wells Fargo & Company dropped their price objective on shares of Allison Transmission from $137.00 to $120.00 and set an “equal weight” rating for the company in a research report on Thursday, October 8th. Weiss Ratings upgraded Allison Transmission from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Finally, Zacks Research upgraded Allison Transmission from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 5th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $132.86.

Allison Transmission Price Performance

Shares of NYSE:ALSN traded up $1.44 during midday trading on Wednesday, reaching $120.36. The company’s stock had a trading volume of 458,513 shares, compared to its average volume of 918,209. Allison Transmission has a fifty-two week low of $78.19 and a fifty-two week high of $137.62. The company has a market capitalization of $9.94 billion, a P/E ratio of 17.27, a P/E/G ratio of 0.60 and a beta of 1.06. The company has a debt-to-equity ratio of 2.07, a current ratio of 1.81 and a quick ratio of 1.17. The business’s fifty day simple moving average is $117.12 and its 200-day simple moving average is $118.37.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings results on Monday, November 2nd. The auto parts company reported $2.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.32 by $0.58. Allison Transmission had a net margin of 11.12% and a return on equity of 43.23%. The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.47 billion. During the same quarter in the prior year, the company earned $1.63 EPS. The firm’s quarterly revenue was up 121.4% on a year-over-year basis. As a group, equities research analysts expect that Allison Transmission will post 10.25 EPS for the current fiscal year.

Insider Activity at Allison Transmission

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

Institutional Trading of Allison Transmission

Several institutional investors and hedge funds have recently made changes to their positions in ALSN. Brighton Jones LLC increased its stake in Allison Transmission by 3.2% in the 3rd quarter. Brighton Jones LLC now owns 3,682 shares of the auto parts company’s stock valued at $417,000 after buying an additional 115 shares during the last quarter. Ethic Inc. boosted its stake in shares of Allison Transmission by 7.6% during the 3rd quarter. Ethic Inc. now owns 10,905 shares of the auto parts company’s stock worth $1,235,000 after buying an additional 774 shares during the last quarter. StoneX Group Inc. acquired a new position in shares of Allison Transmission during the 3rd quarter worth about $221,000. Parallel Advisors LLC grew its holdings in shares of Allison Transmission by 8.6% in the 3rd quarter. Parallel Advisors LLC now owns 1,779 shares of the auto parts company’s stock valued at $202,000 after acquiring an additional 141 shares in the last quarter. Finally, Kestra Advisory Services LLC grew its holdings in shares of Allison Transmission by 8.4% in the 3rd quarter. Kestra Advisory Services LLC now owns 12,044 shares of the auto parts company’s stock valued at $1,364,000 after acquiring an additional 932 shares in the last quarter. Institutional investors own 96.90% of the company’s stock.

More Allison Transmission News

Here are the key news stories impacting Allison Transmission this week:

• Positive Sentiment: Allison reported third-quarter sales of $1.534 billion, up 121% year over year, and adjusted diluted EPS of $2.90, ahead of analyst estimates. The core Allison Transmission business also posted record quarterly sales of $881 million, up 27%. Allison Announces Third Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 guidance for a second consecutive quarter. Revenue is now forecast at $6.0 billion–$6.1 billion, above the roughly $5.9 billion consensus, with earnings and cash-flow outlooks also increased. Allison Transmission Holdings Raised Full Year 2026 Guidance Again
• Positive Sentiment: Management cited strong demand across most end markets and expects more than $120 million in synergies in 2027 from the acquired off-highway business, offering potential for future earnings support. Allison Transmission Q3 Review
• Neutral Sentiment: A valuation article estimates ALSN shares may be 49% undervalued, a potentially supportive view but dependent on the assumptions behind that estimate. Allison Transmission Stock May Be 49% Undervalued
• Negative Sentiment: Analysts noted that margins declined as the acquired off-highway segment contributed revenue at lower profitability. The company will need to improve margins and realize expected synergies to turn sales growth into stronger profits. Allison Transmission Q3 Review

Allison Transmission Company Profile

Allison Transmission, Inc designs and manufactures propulsion solutions for commercial, defense and off-highway vehicles. The company is best known for its fully automatic transmissions, which are used in applications including refuse collection, construction, distribution, emergency services, public transportation and mining.

Its product portfolio also includes electric and hybrid-electric propulsion systems, including the eGen Power electric axle and other electrification technologies.