Allison Transmission (NYSE:ALSN) Shares Gap Up – Here’s Why

Allison Transmission Holdings, Inc. (NYSE:ALSN)’s stock price 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.

Analyst Upgrades and Downgrades

Several research firms have recently commented on ALSN. Zacks Research downgraded Allison Transmission from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 24th. Citigroup increased their target price on Allison Transmission from $130.00 to $135.00 and gave the stock a “neutral” rating in a report on Monday, April 13th. Morgan Stanley lifted their price target on shares of Allison Transmission from $117.00 to $126.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 13th. Weiss Ratings lowered shares of Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, June 18th. Finally, Wells Fargo & Company upped their price objective 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 assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $127.17.

Allison Transmission Stock Down 0.8%

The company has a debt-to-equity ratio of 2.23, a current ratio of 1.85 and a quick ratio of 1.18. The stock has a fifty day moving average price of $119.55 and a two-hundred day moving average price of $115.49. The company has a market cap of $9.66 billion, a P/E ratio of 18.12, a price-to-earnings-growth ratio of 0.63 and a beta of 0.95.

Allison Transmission (NYSE:ALSN) last announced its quarterly earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.10 by $0.47. The business had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.38 billion. Allison Transmission had a return on equity of 37.50% and a net margin of 14.88%.Allison Transmission’s revenue was up 83.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.23 earnings per share. On average, research analysts expect that Allison Transmission Holdings, Inc. will post 9.86 EPS for the current year.

Allison Transmission Dividend Announcement

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

Insider Activity at Allison Transmission

In related news, CFO Scott A. Mell sold 2,270 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $125.00, for a total transaction of $283,750.00. Following the transaction, the chief financial officer directly owned 1,053 shares of the company’s stock, valued at $131,625. This trade represents a 68.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Allison Transmission

Institutional investors have recently added to or reduced their stakes in the company. BankChampaign National Association purchased a new stake in Allison Transmission in the 1st quarter valued at about $812,000. Bank of America Corp DE grew its holdings in shares of Allison Transmission by 12.3% in the first 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 in the last quarter. Edgestream Partners L.P. grew its holdings in shares of Allison Transmission by 18.9% in the first 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 in the last quarter. Janus Henderson Group PLC grew its holdings in shares of Allison Transmission by 32.7% in the first quarter. Janus Henderson Group PLC now owns 491,105 shares of the auto parts company’s stock valued at $57,530,000 after acquiring an additional 121,129 shares in the last quarter. Finally, Bull Harbor Capital LLC purchased a new stake in shares of Allison Transmission during the first quarter valued at approximately $297,000. 96.90% of the stock is owned by institutional investors.

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.