Allison Transmission (NYSE:ALSN) Hits New 12-Month Low – Should You Sell?

Allison Transmission Holdings, Inc. (NYSE:ALSN) shares reached a new 52-week low on Friday . The stock traded as low as $79.73 and last traded at $80.20, with a volume of 246840 shares. The stock had previously closed at $81.02.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Zacks Research upgraded shares of Allison Transmission from a “strong sell” rating to a “hold” rating in a report on Friday, September 19th. Citigroup reduced their target price on shares of Allison Transmission from $105.00 to $100.00 and set a “neutral” rating for the company in a research note on Tuesday, June 24th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Allison Transmission in a research note on Wednesday. Raymond James Financial reduced their price target on shares of Allison Transmission from $110.00 to $105.00 and set an “outperform” rating for the company in a research report on Monday, July 21st. Finally, Wall Street Zen lowered shares of Allison Transmission from a “buy” rating to a “hold” rating in a research report on Sunday, June 22nd. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $98.38.

Allison Transmission Price Performance

The company has a quick ratio of 2.64, a current ratio of 3.36 and a debt-to-equity ratio of 1.37. The stock has a market cap of $6.64 billion, a P/E ratio of 9.02 and a beta of 1.01. The firm’s fifty day moving average price is $87.32 and its 200-day moving average price is $92.29.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings results on Monday, August 4th. The auto parts company reported $2.29 earnings per share for the quarter, beating the consensus estimate of $2.20 by $0.09. The business had revenue of $814.00 million for the quarter, compared to analysts’ expectations of $811.05 million. Allison Transmission had a net margin of 23.81% and a return on equity of 45.56%. The firm’s revenue for the quarter was down .2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.13 earnings per share. Allison Transmission has set its FY 2025 guidance at EPS. Analysts forecast that Allison Transmission Holdings, Inc. will post 9.06 earnings per share for the current year.

Allison Transmission Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Wednesday, August 20th were issued a $0.27 dividend. The ex-dividend date was Wednesday, August 20th. This represents a $1.08 annualized dividend and a yield of 1.4%. Allison Transmission’s payout ratio is 12.27%.

Institutional Trading of Allison Transmission

Large investors have recently added to or reduced their stakes in the stock. Trust Co. of Toledo NA OH bought a new stake in Allison Transmission in the second quarter valued at $28,000. SVB Wealth LLC bought a new stake in Allison Transmission in the first quarter valued at $33,000. WPG Advisers LLC bought a new stake in Allison Transmission in the first quarter valued at $34,000. Cullen Frost Bankers Inc. boosted its holdings in Allison Transmission by 3,108.3% in the second quarter. Cullen Frost Bankers Inc. now owns 385 shares of the auto parts company’s stock valued at $37,000 after acquiring an additional 373 shares in the last quarter. Finally, Employees Retirement System of Texas bought a new stake in Allison Transmission in the second quarter valued at $38,000. Institutional investors own 96.90% of the company’s stock.

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.