Allison Transmission (NYSE:ALSN) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday. The firm presently has a $45.00 target price on the auto parts company’s stock. Zacks Investment Research‘s target price points to a potential upside of 14.94% from the company’s previous close.
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. “
Other research analysts also recently issued research reports about the stock. Bank of America set a $52.00 target price on shares of Allison Transmission and gave the company a “buy” rating in a research report on Tuesday, November 14th. Deutsche Bank set a $37.00 target price on shares of Allison Transmission and gave the company a “sell” rating in a research report on Wednesday, November 1st. Stifel Nicolaus upgraded shares of Allison Transmission from a “hold” rating to a “buy” rating and boosted their target price for the company from $44.00 to $50.00 in a research report on Friday, February 16th. Robert W. Baird reiterated a “buy” rating and set a $52.00 target price on shares of Allison Transmission in a research report on Wednesday, November 1st. Finally, Royal Bank of Canada reiterated a “buy” rating on shares of Allison Transmission in a research report on Thursday, November 2nd. Three research analysts have rated the stock with a sell rating, six have issued a hold rating, six have issued a buy rating and two have given a strong buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $43.82.
Allison Transmission (NYSE:ALSN) last released its earnings results on Wednesday, February 14th. The auto parts company reported $1.51 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.62 by $0.89. Allison Transmission had a net margin of 22.28% and a return on equity of 60.52%. The company had revenue of $588.00 million for the quarter, compared to the consensus estimate of $576.57 million. During the same quarter in the previous year, the company earned $0.36 EPS. Allison Transmission’s quarterly revenue was up 25.4% compared to the same quarter last year. analysts anticipate that Allison Transmission will post 2.85 earnings per share for the current fiscal year.
Allison Transmission announced that its Board of Directors has approved a share buyback plan on Wednesday, November 8th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the auto parts company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.
In other Allison Transmission news, insider David S. Graziosi sold 46,200 shares of the business’s stock in a transaction on Tuesday, January 9th. The shares were sold at an average price of $45.03, for a total transaction of $2,080,386.00. Following the completion of the sale, the insider now owns 240,323 shares in the company, valued at approximately $10,821,744.69. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Michael Dick sold 6,565 shares of the business’s stock in a transaction on Tuesday, January 9th. The shares were sold at an average price of $45.00, for a total transaction of $295,425.00. Following the sale, the senior vice president now owns 39,496 shares of the company’s stock, valued at approximately $1,777,320. The disclosure for this sale can be found here. Insiders have sold a total of 3,405,629 shares of company stock valued at $149,746,270 in the last 90 days. 7.90% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Envestnet Asset Management Inc. grew its stake in shares of Allison Transmission by 1,055.4% in the 4th quarter. Envestnet Asset Management Inc. now owns 22,323 shares of the auto parts company’s stock worth $962,000 after acquiring an additional 20,391 shares in the last quarter. Banco de Sabadell S.A bought a new stake in shares of Allison Transmission in the 4th quarter worth $1,226,000. Gotham Asset Management LLC grew its stake in shares of Allison Transmission by 9.6% in the 4th quarter. Gotham Asset Management LLC now owns 724,802 shares of the auto parts company’s stock worth $31,217,000 after acquiring an additional 63,514 shares in the last quarter. Glenmede Trust Co. NA grew its stake in shares of Allison Transmission by 16.1% in the 4th quarter. Glenmede Trust Co. NA now owns 55,590 shares of the auto parts company’s stock worth $2,393,000 after acquiring an additional 7,693 shares in the last quarter. Finally, Macquarie Group Ltd. grew its stake in shares of Allison Transmission by 369.3% in the 4th quarter. Macquarie Group Ltd. now owns 164,076 shares of the auto parts company’s stock worth $7,066,000 after acquiring an additional 129,116 shares in the last quarter.
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About Allison Transmission
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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