The Goldman Sachs Group Forecasts Strong Price Appreciation for Allison Transmission (NYSE:ALSN) Stock

Allison Transmission (NYSE:ALSN) had its price objective upped by investment analysts at The Goldman Sachs Group from $80.00 to $90.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a “sell” rating on the auto parts company’s stock. The Goldman Sachs Group’s price objective points to a potential downside of 13.69% from the company’s current price.

Several other research analysts have also weighed in on the stock. Wall Street Zen raised shares of Allison Transmission from a “hold” rating to a “buy” rating in a report on Monday, May 12th. Robert W. Baird cut their price objective on shares of Allison Transmission from $123.00 to $100.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 15th. Raymond James cut their price objective on shares of Allison Transmission from $115.00 to $110.00 and set an “outperform” rating on the stock in a research report on Monday, April 14th. Morgan Stanley lifted their price objective on shares of Allison Transmission from $94.00 to $100.00 and gave the company an “equal weight” rating in a research report on Tuesday, May 6th. Finally, JPMorgan Chase & Co. dropped their price target on shares of Allison Transmission from $110.00 to $98.00 and set a “neutral” rating on the stock in a research report on Friday, April 11th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $98.13.

Allison Transmission Stock Up 1.9%

Allison Transmission stock traded up $1.94 during midday trading on Tuesday, hitting $104.28. 112,376 shares of the stock were exchanged, compared to its average volume of 639,292. The firm has a market cap of $8.79 billion, a P/E ratio of 12.55 and a beta of 0.97. The company has a debt-to-equity ratio of 1.45, a current ratio of 3.04 and a quick ratio of 2.42. Allison Transmission has a 1 year low of $71.49 and a 1 year high of $122.53. The company has a 50 day moving average price of $95.41 and a two-hundred day moving average price of $105.17.

Allison Transmission (NYSE:ALSN) last announced its quarterly earnings data on Thursday, May 1st. The auto parts company reported $2.23 earnings per share for the quarter, topping the consensus estimate of $1.97 by $0.26. The company had revenue of $766.00 million during the quarter, compared to analyst estimates of $792.18 million. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. The firm’s revenue for the quarter was down 2.9% compared to the same quarter last year. During the same period last year, the business earned $1.90 EPS. On average, sell-side analysts predict that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Allison Transmission announced that its board has approved a share repurchase program on Thursday, February 20th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the auto parts company to purchase up to 57.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, VP Ryan A. Milburn sold 3,412 shares of the business’s stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $105.24, for a total value of $359,078.88. Following the sale, the vice president now directly owns 11,924 shares in the company, valued at $1,254,881.76. The trade was a 22.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP John Coll sold 1,788 shares of the business’s stock in a transaction that occurred on Tuesday, April 1st. The shares were sold at an average price of $95.33, for a total transaction of $170,450.04. Following the sale, the senior vice president now owns 15,388 shares in the company, valued at $1,466,938.04. This represents a 10.41% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 9,746 shares of company stock worth $966,854 in the last ninety days. 1.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Allison Transmission

A number of large investors have recently made changes to their positions in ALSN. Loomis Sayles & Co. L P raised its holdings in shares of Allison Transmission by 301.1% during the fourth quarter. Loomis Sayles & Co. L P now owns 2,378,731 shares of the auto parts company’s stock valued at $257,046,000 after acquiring an additional 1,785,687 shares during the period. Norges Bank purchased a new position in Allison Transmission during the fourth quarter valued at approximately $108,916,000. Caisse DE Depot ET Placement DU Quebec grew its position in Allison Transmission by 109.1% during the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 929,434 shares of the auto parts company’s stock valued at $88,919,000 after purchasing an additional 484,916 shares in the last quarter. Raymond James Financial Inc. purchased a new position in Allison Transmission during the fourth quarter valued at approximately $41,081,000. Finally, FMR LLC grew its position in Allison Transmission by 1.9% during the fourth quarter. FMR LLC now owns 12,993,015 shares of the auto parts company’s stock valued at $1,404,025,000 after purchasing an additional 247,318 shares in the last quarter. 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.