Allison Transmission (NYSE:ALSN) Downgraded by Zacks Investment Research to Hold

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Zacks Investment Research cut shares of Allison Transmission (NYSE:ALSN) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday, Zacks.com reports. They currently have $53.00 price target on the auto parts company’s stock.

According to Zacks, “Strong demand in the North America On-Highway end market and price increase of certain products are the major drivers for Allison’s quarterly gains, which are expected to drive the rest of 2019 as well. For 2019, the company anticipates net sales of $2.58-$2.68 billion. Further, its increased focus toward electrification is likely to drive revenues. The recent electric powertrain launches and two acquisitions will support the company to fortify presence in the electrification and fuel cell markets for commercial vehicles. Lower operating working capital requirements along with increasing gross profits are driving the company’s free cash flow, which is supporting its investment in acquisitions, product and technology development strategies beside rewarding shareholders.  It is also likely to gain from higher in-vehicle releases.”

A number of other brokerages have also recently weighed in on ALSN. ValuEngine upgraded shares of Allison Transmission from a hold rating to a buy rating in a research report on Wednesday, February 27th. Mizuho reiterated a hold rating and set a $53.00 price target on shares of Allison Transmission in a research report on Tuesday, February 26th. Stifel Nicolaus cut shares of Allison Transmission from a buy rating to a hold rating and dropped their price target for the company from $55.00 to $48.00 in a research report on Wednesday, March 6th. Finally, Credit Suisse Group lifted their price target on shares of Allison Transmission from $54.00 to $55.00 and gave the company an outperform rating in a research report on Wednesday, February 27th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and three have issued a buy rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $48.44.

Shares of ALSN stock opened at $45.76 on Wednesday. The company has a quick ratio of 1.49, a current ratio of 1.89 and a debt-to-equity ratio of 3.37. The stock’s 50-day moving average price is $44.05. Allison Transmission has a 12 month low of $39.41 and a 12 month high of $53.76. The stock has a market capitalization of $5.72 billion, a P/E ratio of 9.10, a PEG ratio of 0.98 and a beta of 1.38.

Allison Transmission (NYSE:ALSN) last issued its earnings results on Tuesday, April 23rd. The auto parts company reported $1.32 EPS for the quarter, topping analysts’ consensus estimates of $1.12 by $0.20. Allison Transmission had a net margin of 24.04% and a return on equity of 97.36%. The company had revenue of $675.00 million for the quarter, compared to the consensus estimate of $658.01 million. During the same period in the previous year, the firm earned $1.08 earnings per share. Allison Transmission’s quarterly revenue was up 1.8% compared to the same quarter last year. As a group, analysts anticipate that Allison Transmission will post 4.66 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Friday, May 31st. Shareholders of record on Monday, May 20th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.31%. The ex-dividend date was Friday, May 17th. Allison Transmission’s dividend payout ratio is presently 12.55%.

In related news, Director William R. Harker sold 4,977,043 shares of Allison Transmission stock in a transaction that occurred on Thursday, May 9th. The shares were sold at an average price of $46.70, for a total value of $232,427,908.10. Following the completion of the transaction, the director now owns 10,318 shares in the company, valued at $481,850.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO G Frederick Bohley acquired 5,000 shares of the company’s stock in a transaction that occurred on Friday, April 26th. The stock was acquired at an average price of $46.00 per share, with a total value of $230,000.00. Following the acquisition, the chief financial officer now directly owns 40,940 shares of the company’s stock, valued at approximately $1,883,240. The disclosure for this purchase can be found here. Over the last quarter, insiders have sold 5,089,819 shares of company stock valued at $237,568,166. Company insiders own 9.00% of the company’s stock.

Several hedge funds have recently made changes to their positions in ALSN. Geode Capital Management LLC grew its holdings in Allison Transmission by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 1,679,359 shares of the auto parts company’s stock worth $73,740,000 after acquiring an additional 49,757 shares in the last quarter. DE Burlo Group Inc. acquired a new position in Allison Transmission during the 1st quarter worth approximately $1,842,000. Strs Ohio acquired a new position in Allison Transmission during the 1st quarter worth approximately $321,000. Neuburgh Advisers LLC grew its holdings in Allison Transmission by 42.0% during the 4th quarter. Neuburgh Advisers LLC now owns 277,270 shares of the auto parts company’s stock worth $12,175,000 after acquiring an additional 81,974 shares in the last quarter. Finally, Keybank National Association OH acquired a new position in Allison Transmission during the 1st quarter worth approximately $336,000. Hedge funds and other institutional investors own 95.51% of the company’s stock.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles worldwide. It offers 12 transmission product lines for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school, transit, and hybrid-transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles.

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