Allison Transmission (ALSN) Shares Gap Up Following Better-Than-Expected Earnings

Allison Transmission Holdings Inc (NYSE:ALSN) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $42.36, but opened at $43.93. Allison Transmission shares last traded at $44.21, with a volume of 2827116 shares changing hands.

The auto parts company reported $1.27 EPS for the quarter, topping the consensus estimate of $1.10 by $0.17. Allison Transmission had a net margin of 25.46% and a return on equity of 86.52%. The company had revenue of $692.00 million for the quarter, compared to the consensus estimate of $656.52 million. During the same period in the previous year, the firm earned $0.75 earnings per share. The firm’s revenue for the quarter was up 16.3% on a year-over-year basis.

The company also recently announced a quarterly dividend, which will be paid on Friday, November 30th. Investors of record on Monday, November 19th will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 1.36%. The ex-dividend date of this dividend is Friday, November 16th. Allison Transmission’s payout ratio is 22.56%.

Several research analysts recently commented on the stock. Buckingham Research set a $50.00 target price on shares of Allison Transmission and gave the stock a “hold” rating in a research note on Thursday, October 11th. Credit Suisse Group lifted their target price on shares of Allison Transmission from $48.00 to $55.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 1st. Zacks Investment Research raised shares of Allison Transmission from a “hold” rating to a “buy” rating and set a $47.00 target price on the stock in a research note on Wednesday, August 1st. Stifel Nicolaus lifted their target price on shares of Allison Transmission from $53.00 to $56.00 and gave the stock a “buy” rating in a research note on Tuesday, July 31st. Finally, ValuEngine raised shares of Allison Transmission from a “hold” rating to a “buy” rating in a research note on Tuesday, July 31st. Three analysts have rated the stock with a sell rating, four have given a hold rating and eight have assigned a buy rating to the stock. Allison Transmission has an average rating of “Hold” and a consensus price target of $46.69.

In other news, CEO David S. Graziosi sold 5,000 shares of the business’s stock in a transaction on Monday, August 20th. The shares were sold at an average price of $48.52, for a total transaction of $242,600.00. Following the sale, the chief executive officer now owns 196,921 shares in the company, valued at approximately $9,554,606.92. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Lawrence E. Dewey sold 262,795 shares of the business’s stock in a transaction on Thursday, September 13th. The shares were sold at an average price of $51.61, for a total transaction of $13,562,849.95. Following the sale, the director now owns 479,870 shares in the company, valued at approximately $24,766,090.70. The disclosure for this sale can be found here. In the last quarter, insiders sold 393,604 shares of company stock worth $20,280,466. 8.40% of the stock is currently owned by company insiders.

Hedge funds have recently made changes to their positions in the company. Gabelli Funds LLC bought a new stake in shares of Allison Transmission during the 2nd quarter valued at $510,000. Moneta Group Investment Advisors LLC boosted its holdings in shares of Allison Transmission by 96.4% during the 2nd quarter. Moneta Group Investment Advisors LLC now owns 4,095 shares of the auto parts company’s stock valued at $166,000 after buying an additional 2,010 shares in the last quarter. GSA Capital Partners LLP bought a new stake in shares of Allison Transmission during the 2nd quarter valued at $2,535,000. Burney Co. boosted its holdings in shares of Allison Transmission by 77.4% during the 2nd quarter. Burney Co. now owns 146,363 shares of the auto parts company’s stock valued at $5,926,000 after buying an additional 63,842 shares in the last quarter. Finally, Empirical Finance LLC bought a new stake in shares of Allison Transmission during the 3rd quarter valued at $1,570,000.

The firm has a market cap of $5.73 billion, a P/E ratio of 16.62, a price-to-earnings-growth ratio of 0.99 and a beta of 1.26. The company has a current ratio of 1.43, a quick ratio of 1.05 and a debt-to-equity ratio of 4.19.

Allison Transmission Company Profile (NYSE:ALSN)

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 13 transmission product lines with approximately 100 product models 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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