Allison Transmission Holdings (NYSE:ALSN) declared that its board has initiated a share buyback program, which permits the company to buyback $1.00 billion in shares on Wednesday, November 16th, EventVestor reports. This buyback authorization permits the auto parts company to repurchase up to 19% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board believes its shares are undervalued.
A number of research analysts recently issued reports on the company. Royal Bank Of Canada reiterated a “buy” rating on shares of Allison Transmission Holdings in a report on Wednesday, August 2nd. Piper Jaffray Companies reiterated a “sell” rating and set a $31.00 price objective on shares of Allison Transmission Holdings in a report on Wednesday, July 12th. Deutsche Bank AG decreased their price objective on Allison Transmission Holdings from $44.00 to $43.00 and set a “hold” rating for the company in a report on Wednesday, August 2nd. BidaskClub downgraded Allison Transmission Holdings from a “hold” rating to a “sell” rating in a report on Monday, July 31st. Finally, Stifel Nicolaus set a $41.00 price target on Allison Transmission Holdings and gave the company a “hold” rating in a research note on Thursday, August 3rd. Two research analysts have rated the stock with a sell rating, five have given a hold rating, six have issued a buy rating and two have given a strong buy rating to the stock. Allison Transmission Holdings presently has a consensus rating of “Buy” and a consensus target price of $40.56.
Allison Transmission Holdings (NYSE:ALSN) opened at 37.18 on Wednesday. Allison Transmission Holdings has a 1-year low of $26.74 and a 1-year high of $40.25. The firm has a 50-day moving average price of $37.69 and a 200-day moving average price of $37.07. The company has a market capitalization of $5.53 billion, a P/E ratio of 21.11 and a beta of 1.18.
Allison Transmission Holdings (NYSE:ALSN) last released its earnings results on Monday, July 31st. The auto parts company reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.16. The company had revenue of $580 million during the quarter, compared to analyst estimates of $515.03 million. Allison Transmission Holdings had a return on equity of 31.27% and a net margin of 14.32%. Allison Transmission Holdings’s quarterly revenue was up 22.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.37 earnings per share. On average, analysts forecast that Allison Transmission Holdings will post $2.11 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 31st. Shareholders of record on Monday, August 21st will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.61%. The ex-dividend date of this dividend is Thursday, August 17th. Allison Transmission Holdings’s dividend payout ratio (DPR) is 33.71%.
In other news, CFO David S. Graziosi sold 50,000 shares of the firm’s stock in a transaction on Tuesday, May 23rd. The stock was sold at an average price of $38.19, for a total value of $1,909,500.00. Following the completion of the transaction, the chief financial officer now directly owns 244,123 shares of the company’s stock, valued at $9,323,057.37. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO David S. Graziosi sold 10,736 shares of the firm’s stock in a transaction on Tuesday, August 1st. The stock was sold at an average price of $39.91, for a total value of $428,473.76. Following the completion of the transaction, the chief financial officer now directly owns 204,859 shares of the company’s stock, valued at $8,175,922.69. The disclosure for this sale can be found here. Over the last three months, insiders have sold 132,584 shares of company stock valued at $5,126,514. 7.90% of the stock is owned by corporate insiders.
Allison Transmission Holdings 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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