Allison Transmission (NYSE:ALSN) Upgraded by Wall Street Zen to Buy Rating

Allison Transmission (NYSE:ALSN) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report issued on Saturday.

A number of other analysts have also recently issued reports on ALSN. Morgan Stanley increased their target price on Allison Transmission from $94.00 to $100.00 and gave the stock an “equal weight” rating in a research note on Tuesday, May 6th. Raymond James lowered their target price on Allison Transmission from $115.00 to $110.00 and set an “outperform” rating for the company in a research note on Monday, April 14th. JPMorgan Chase & Co. lowered their target price on Allison Transmission from $110.00 to $98.00 and set a “neutral” rating for the company in a research note on Friday, April 11th. Robert W. Baird lowered their target price on Allison Transmission from $123.00 to $100.00 and set a “neutral” rating for the company in a research note on Tuesday, April 15th. Finally, Citigroup lowered their target price on Allison Transmission from $108.00 to $95.00 and set a “neutral” rating for the company in a research note on Tuesday, April 8th. Two analysts have rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $98.13.

Allison Transmission Stock Performance

Shares of NYSE:ALSN opened at $98.72 on Friday. The company has a market capitalization of $8.32 billion, a price-to-earnings ratio of 11.88 and a beta of 1.00. The firm’s 50 day simple moving average is $97.60 and its 200 day simple moving average is $103.75. 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 $72.39 and a fifty-two week high of $122.53.

Allison Transmission (NYSE:ALSN) last announced its quarterly earnings results on Thursday, May 1st. The auto parts company reported $2.23 earnings per share for the quarter, beating analysts’ consensus estimates of $1.97 by $0.26. The business had revenue of $766.00 million for the quarter, compared to the consensus estimate of $792.18 million. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. Allison Transmission’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same period last year, the company posted $1.90 EPS. As a group, sell-side analysts forecast that Allison Transmission will post 9.06 earnings per share for the current year.

Allison Transmission declared that its Board of Directors has authorized a stock repurchase program on Thursday, February 20th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the auto parts company to purchase up to 57.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at Allison Transmission

In other news, VP Ryan A. Milburn sold 3,412 shares of the firm’s stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total transaction of $359,078.88. Following the completion of the transaction, the vice president now directly owns 11,924 shares of the company’s stock, valued at $1,254,881.76. This trade represents a 22.25% 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, SVP John Coll sold 1,788 shares of the stock in a transaction that occurred on Tuesday, April 1st. The shares were sold at an average price of $95.33, for a total value of $170,450.04. Following the completion of the sale, the senior vice president now directly owns 15,388 shares of the company’s stock, valued at approximately $1,466,938.04. The trade was a 10.41% decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Allison Transmission

Large investors have recently made changes to their positions in the stock. Transce3nd LLC acquired a new stake in shares of Allison Transmission in the 4th quarter valued at approximately $25,000. Kestra Investment Management LLC acquired a new stake in shares of Allison Transmission in the 4th quarter valued at approximately $30,000. Vermillion Wealth Management Inc. acquired a new stake in shares of Allison Transmission in the 4th quarter valued at approximately $31,000. SVB Wealth LLC acquired a new stake in shares of Allison Transmission in the 1st quarter valued at approximately $33,000. Finally, WPG Advisers LLC acquired a new stake in shares of Allison Transmission in the 1st quarter valued at approximately $34,000. Institutional investors and hedge funds own 96.90% of the company’s stock.

Allison Transmission Company Profile

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.