Federated Hermes Inc. Acquires 36,065 Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN)

Federated Hermes Inc. grew its stake in Allison Transmission Holdings, Inc. (NYSE:ALSN) by 3.9% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 956,691 shares of the auto parts company’s stock after purchasing an additional 36,065 shares during the period. Federated Hermes Inc. owned approximately 1.10% of Allison Transmission worth $103,380,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. SRH Advisors LLC purchased a new position in Allison Transmission during the 4th quarter valued at $26,000. World Investment Advisors LLC bought a new position in shares of Allison Transmission in the third quarter worth about $29,000. Kestra Investment Management LLC bought a new position in shares of Allison Transmission in the fourth quarter worth about $30,000. Thurston Springer Miller Herd & Titak Inc. purchased a new position in Allison Transmission in the 4th quarter worth about $31,000. Finally, Quarry LP boosted its position in Allison Transmission by 46.7% in the 3rd quarter. Quarry LP now owns 358 shares of the auto parts company’s stock valued at $34,000 after buying an additional 114 shares during the period. Hedge funds and other institutional investors own 96.90% of the company’s stock.

Allison Transmission Price Performance

Shares of ALSN opened at $86.01 on Monday. The company has a 50 day moving average of $102.54 and a two-hundred day moving average of $106.66. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45. Allison Transmission Holdings, Inc. has a twelve month low of $40.26 and a twelve month high of $122.53. The company has a market cap of $7.33 billion, a price-to-earnings ratio of 10.35 and a beta of 0.95.

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

Allison Transmission declared that its Board of Directors has initiated a share buyback 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 purchase up to 57.1% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Allison Transmission Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Monday, March 3rd were paid a $0.27 dividend. The ex-dividend date was Monday, March 3rd. This is a boost from Allison Transmission’s previous quarterly dividend of $0.25. This represents a $1.08 dividend on an annualized basis and a yield of 1.26%. Allison Transmission’s dividend payout ratio (DPR) is 13.00%.

Insiders Place Their Bets

In other news, SVP John Coll sold 1,788 shares of the company’s stock in a transaction on Tuesday, April 1st. The shares were sold at an average price of $95.33, for a total value of $170,450.04. Following the sale, the senior vice president now directly owns 15,388 shares of the company’s stock, valued at $1,466,938.04. This represents a 10.41 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Ryan A. Milburn sold 4,546 shares of the company’s stock in a transaction on Thursday, March 6th. The shares were 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 directly owns 14,138 shares in the company, valued at approximately $1,360,075.60. The trade was a 24.33 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.10% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on ALSN. StockNews.com lowered Allison Transmission from a “buy” rating to a “hold” rating in a report on Thursday, March 27th. Citigroup dropped their price target on Allison Transmission from $115.00 to $108.00 and set a “neutral” rating on the stock in a research report on Monday, March 31st. The Goldman Sachs Group lifted their price objective on Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a report on Thursday, December 12th. Morgan Stanley increased their target price on shares of Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a report on Tuesday, December 17th. Finally, JPMorgan Chase & Co. reduced their price target on shares of Allison Transmission from $129.00 to $110.00 and set a “neutral” rating for the company in a report on Tuesday, March 18th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $101.13.

About Allison Transmission

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.