Zacks Investment Research upgraded shares of Allison Transmission (NYSE:ALSN) from a hold rating to a buy rating in a research note published on Tuesday. They currently have $48.00 price target on the auto parts company’s stock.
According to Zacks, “Allison Transmission Holdings, Inc. is engaged in the manufacturing of fully-automatic transmissions for medium- and heavy-duty commercial vehicles, medium- and heavy-tactical U.S. military vehicles and hybrid-propulsion systems for transit buses. The Company’s products are used in a variety of applications including on-highway trucks, buses, motorhomes, off-highway vehicles and equipment and military vehicles. Allison Transmission Holdings, Inc. is headquartered in Indianapolis, Indiana. “
A number of other research firms have also commented on ALSN. Royal Bank of Canada restated a buy rating on shares of Allison Transmission in a research note on Thursday, November 2nd. Citigroup lifted their price objective on shares of Allison Transmission from $45.00 to $50.00 and gave the company a buy rating in a research note on Thursday, November 2nd. Deutsche Bank set a $37.00 price objective on shares of Allison Transmission and gave the company a sell rating in a research note on Wednesday, November 1st. Buckingham Research lifted their price objective on shares of Allison Transmission from $36.00 to $42.00 and gave the company a neutral rating in a research note on Wednesday, November 1st. Finally, Stifel Nicolaus lifted their price objective on shares of Allison Transmission from $41.00 to $45.00 and gave the company a hold rating in a research note on Wednesday, November 1st. Two analysts have rated the stock with a sell rating, seven have given a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of Hold and an average price target of $43.64.
Allison Transmission declared that its Board of Directors has initiated a share repurchase program on Wednesday, November 8th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the auto parts company to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, February 28th. Stockholders of record on Tuesday, February 20th will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, February 16th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.44%. Allison Transmission’s dividend payout ratio (DPR) is 26.43%.
In related news, SVP Michael Dick sold 19,600 shares of the business’s stock in a transaction dated Tuesday, December 19th. The shares were sold at an average price of $42.47, for a total transaction of $832,412.00. Following the sale, the senior vice president now owns 39,131 shares of the company’s stock, valued at $1,661,893.57. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Eric C. Scroggins sold 7,500 shares of the business’s stock in a transaction dated Monday, November 20th. The stock was sold at an average price of $39.51, for a total transaction of $296,325.00. Following the sale, the vice president now directly owns 23,480 shares in the company, valued at approximately $927,694.80. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 3,413,129 shares of company stock worth $150,042,595. Company insiders own 7.90% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in ALSN. Old Mutual Global Investors UK Ltd. boosted its holdings in Allison Transmission by 394.0% during the third quarter. Old Mutual Global Investors UK Ltd. now owns 1,777,252 shares of the auto parts company’s stock worth $66,700,000 after buying an additional 1,417,467 shares in the last quarter. LSV Asset Management purchased a new stake in Allison Transmission during the fourth quarter worth about $38,870,000. Jennison Associates LLC boosted its holdings in Allison Transmission by 44.5% during the fourth quarter. Jennison Associates LLC now owns 2,584,627 shares of the auto parts company’s stock worth $111,320,000 after buying an additional 796,191 shares in the last quarter. APG Asset Management N.V. purchased a new stake in Allison Transmission during the third quarter worth about $19,846,000. Finally, Koch Industries Inc. purchased a new stake in Allison Transmission during the second quarter worth about $506,000.
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Allison Transmission Company Profile
Allison Transmission Holdings, Inc and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company’s transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked).
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