Allison Transmission Holdings, Inc. (NYSE:ALSN) Receives Consensus Recommendation of “Reduce” from Brokerages

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) have earned a consensus recommendation of “Reduce” from the ten ratings firms that are covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has issued a buy rating on the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $92.00.

Several analysts have recently weighed in on the stock. Citigroup lowered their target price on shares of Allison Transmission from $95.00 to $90.00 and set a “neutral” rating on the stock in a report on Friday, October 31st. Weiss Ratings downgraded shares of Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 24th. Wells Fargo & Company assumed coverage on Allison Transmission in a research report on Thursday. They set an “equal weight” rating and a $85.00 target price on the stock. Raymond James Financial reduced their price target on Allison Transmission from $110.00 to $105.00 and set an “outperform” rating for the company in a report on Monday, July 21st. Finally, Zacks Research raised Allison Transmission from a “strong sell” rating to a “hold” rating in a report on Friday, September 19th.

Institutional Trading of Allison Transmission

A number of institutional investors have recently added to or reduced their stakes in ALSN. Boston Partners raised its holdings in shares of Allison Transmission by 117.6% in the third quarter. Boston Partners now owns 2,038,429 shares of the auto parts company’s stock worth $173,093,000 after acquiring an additional 1,101,824 shares during the last quarter. AQR Capital Management LLC increased its position in Allison Transmission by 18.9% during the 2nd quarter. AQR Capital Management LLC now owns 1,915,887 shares of the auto parts company’s stock worth $181,741,000 after purchasing an additional 304,974 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Allison Transmission by 1.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,907,768 shares of the auto parts company’s stock valued at $161,926,000 after purchasing an additional 32,996 shares during the last quarter. State Street Corp lifted its holdings in Allison Transmission by 1.1% in the 2nd quarter. State Street Corp now owns 1,652,290 shares of the auto parts company’s stock valued at $156,951,000 after purchasing an additional 17,783 shares in the last quarter. Finally, Federated Hermes Inc. lifted its holdings in Allison Transmission by 35.7% in the 2nd quarter. Federated Hermes Inc. now owns 1,544,799 shares of the auto parts company’s stock valued at $146,740,000 after purchasing an additional 406,540 shares in the last quarter. Hedge funds and other institutional investors own 96.90% of the company’s stock.

Allison Transmission Price Performance

Allison Transmission stock opened at $81.67 on Friday. Allison Transmission has a 12 month low of $76.01 and a 12 month high of $122.53. The company has a debt-to-equity ratio of 1.37, a current ratio of 3.36 and a quick ratio of 2.64. The business has a 50 day simple moving average of $84.19 and a 200-day simple moving average of $90.83. The stock has a market capitalization of $6.80 billion, a PE ratio of 10.01 and a beta of 1.02.

Allison Transmission (NYSE:ALSN) last posted its quarterly earnings data on Wednesday, October 29th. The auto parts company reported $1.63 earnings per share for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.32). The firm had revenue of $693.00 million during the quarter, compared to analysts’ expectations of $779.97 million. Allison Transmission had a net margin of 22.78% and a return on equity of 41.37%. The business’s quarterly revenue was down 15.9% on a year-over-year basis. During the same quarter last year, the business earned $2.27 earnings per share. Allison Transmission has set its FY 2025 guidance at EPS. Equities analysts predict that Allison Transmission will post 9.06 earnings per share for the current year.

Allison Transmission Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 5th. Stockholders of record on Friday, November 21st will be paid a dividend of $0.27 per share. The ex-dividend date of this dividend is Friday, November 21st. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.3%. Allison Transmission’s dividend payout ratio is 13.24%.

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.