Allison Transmission Holdings, Inc. (ALSN) to Issue Quarterly Dividend of $0.27 on May 30th

Allison Transmission Holdings, Inc. (NYSE:ALSN) announced a quarterly dividend on Wednesday, May 7th, RTT News reports. Investors of record on Monday, May 19th will be paid a dividend of 0.27 per share by the auto parts company on Friday, May 30th. This represents a $1.08 annualized dividend and a dividend yield of 1.09%. The ex-dividend date is Monday, May 19th.

Allison Transmission has increased its dividend payment by an average of 9.6% per year over the last three years and has increased its dividend every year for the last 2 years. Allison Transmission has a payout ratio of 10.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Allison Transmission to earn $10.06 per share next year, which means the company should continue to be able to cover its $1.08 annual dividend with an expected future payout ratio of 10.7%.

Allison Transmission Stock Up 1.5 %

ALSN opened at $98.66 on Friday. The company has a market capitalization of $8.31 billion, a PE ratio of 11.87 and a beta of 0.97. The company has a debt-to-equity ratio of 1.45, a current ratio of 3.04 and a quick ratio of 2.42. Allison Transmission has a fifty-two week low of $71.49 and a fifty-two week high of $122.53. The business has a 50-day moving average of $93.68 and a 200-day moving average of $105.37.

Allison Transmission (NYSE:ALSN) last posted its earnings results on Thursday, May 1st. The auto parts company reported $2.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.97 by $0.26. The firm had revenue of $766.00 million during the quarter, compared to analysts’ expectations of $792.18 million. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. The company’s revenue was down 2.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.90 earnings per share. Equities research analysts forecast that Allison Transmission will post 9.06 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on ALSN. JPMorgan Chase & Co. lowered their price objective on Allison Transmission from $110.00 to $98.00 and set a “neutral” rating on the stock in a report on Friday, April 11th. Robert W. Baird dropped their price target on shares of Allison Transmission from $123.00 to $100.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 15th. StockNews.com upgraded shares of Allison Transmission from a “hold” rating to a “buy” rating in a research note on Friday, May 2nd. Raymond James decreased their price target on shares of Allison Transmission from $115.00 to $110.00 and set an “outperform” rating for the company in a report on Monday, April 14th. Finally, Citigroup dropped their price objective on Allison Transmission from $108.00 to $95.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 8th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $98.63.

Insider Activity

In related news, SVP John Coll sold 1,788 shares of the firm’s stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $95.33, for a total transaction of $170,450.04. Following the completion of the transaction, the senior vice president now owns 15,388 shares in the company, valued at $1,466,938.04. This trade represents a 10.41 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Ryan A. Milburn sold 4,546 shares of the business’s stock in a transaction on Thursday, March 6th. The shares were sold at an average price of $96.20, for a total value of $437,325.20. Following the completion of the sale, the vice president now directly owns 14,138 shares in the company, valued at approximately $1,360,075.60. This represents a 24.33 % decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is owned by company insiders.

Allison Transmission announced that its Board of Directors has authorized a share repurchase program on Thursday, February 20th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the auto parts company to buy up to 57.1% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

About Allison Transmission

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.