JPMorgan Chase & Co. Cuts Allison Transmission (NYSE:ALSN) Price Target to $110.00

Allison Transmission (NYSE:ALSN) had its price objective lowered by JPMorgan Chase & Co. from $129.00 to $110.00 in a research report sent to investors on Tuesday,Benzinga reports. The brokerage currently has a neutral rating on the auto parts company’s stock.

ALSN has been the subject of a number of other research reports. Morgan Stanley upped their price target on Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a research report on Tuesday, December 17th. Citigroup reduced their price target on Allison Transmission from $120.00 to $115.00 and set a “neutral” rating for the company in a research report on Wednesday, February 12th. The Goldman Sachs Group upped their price target on Allison Transmission from $82.00 to $94.00 and gave the stock a “sell” rating in a research report on Thursday, December 12th. Finally, StockNews.com downgraded Allison Transmission from a “strong-buy” rating to a “buy” rating in a research report on Thursday, February 13th. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and three have given a buy rating to the company. According to MarketBeat, Allison Transmission currently has a consensus rating of “Hold” and a consensus target price of $102.00.

Allison Transmission Price Performance

NYSE ALSN opened at $98.82 on Tuesday. The business has a 50 day simple moving average of $107.14 and a 200 day simple moving average of $105.76. Allison Transmission has a 52-week low of $71.49 and a 52-week high of $122.53. The company has a debt-to-equity ratio of 1.45, a quick ratio of 2.42 and a current ratio of 3.04. The stock has a market cap of $8.45 billion, a price-to-earnings ratio of 11.89 and a beta of 1.02.

Allison Transmission (NYSE:ALSN) last posted its earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.90 by $0.11. Allison Transmission had a return on equity of 47.95% and a net margin of 22.67%. Analysts anticipate that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Allison Transmission Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Monday, March 3rd were issued a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.09%. The ex-dividend date of this dividend was Monday, March 3rd. This is an increase from Allison Transmission’s previous quarterly dividend of $0.25. Allison Transmission’s dividend payout ratio is presently 13.00%.

Allison Transmission announced that its board has approved a stock repurchase plan on Thursday, February 20th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the auto parts company to reacquire up to 57.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other Allison Transmission news, VP Ryan A. Milburn sold 4,546 shares of the firm’s stock in a transaction on Thursday, March 6th. The stock was sold at an average price of $96.20, for a total transaction of $437,325.20. Following the completion of the sale, the vice president now owns 14,138 shares of the company’s stock, valued at $1,360,075.60. This trade represents a 24.33 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP John Coll sold 2,000 shares of the firm’s stock in a transaction on Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total value of $216,800.00. Following the sale, the senior vice president now directly owns 6,420 shares of the company’s stock, valued at $695,928. This represents a 23.75 % decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Allison Transmission

Hedge funds have recently added to or reduced their stakes in the business. Smith Group Asset Management LLC acquired a new stake in Allison Transmission during the 4th quarter valued at $2,161,000. Allspring Global Investments Holdings LLC lifted its holdings in Allison Transmission by 18.8% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 293,753 shares of the auto parts company’s stock valued at $31,643,000 after purchasing an additional 46,435 shares during the last quarter. Glenmede Trust Co. NA increased its position in Allison Transmission by 4.6% during the 3rd quarter. Glenmede Trust Co. NA now owns 97,150 shares of the auto parts company’s stock worth $9,333,000 after buying an additional 4,261 shares during the period. Convergence Investment Partners LLC increased its position in Allison Transmission by 115.6% during the 4th quarter. Convergence Investment Partners LLC now owns 13,950 shares of the auto parts company’s stock worth $1,507,000 after buying an additional 7,479 shares during the period. Finally, Franklin Resources Inc. increased its position in Allison Transmission by 46.8% during the 3rd quarter. Franklin Resources Inc. now owns 250,050 shares of the auto parts company’s stock worth $24,955,000 after buying an additional 79,745 shares during the period. 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.