Allison Transmission (NYSE:ALSN) Reaches New 12-Month High – Should You Buy?

Allison Transmission Holdings, Inc. (NYSE:ALSN) reached a new 52-week high during trading on Tuesday . The company traded as high as $109.75 and last traded at $109.64, with a volume of 558798 shares changing hands. The stock had previously closed at $106.74.

Wall Street Analyst Weigh In

ALSN has been the topic of a number of recent analyst reports. StockNews.com upgraded Allison Transmission from a “buy” rating to a “strong-buy” rating in a report on Thursday, October 10th. JPMorgan Chase & Co. lifted their price objective on shares of Allison Transmission from $80.00 to $100.00 and gave the stock a “neutral” rating in a research note on Friday, October 11th. Robert W. Baird upped their target price on shares of Allison Transmission from $103.00 to $108.00 and gave the company a “neutral” rating in a research note on Wednesday, October 30th. Citigroup lifted their price target on shares of Allison Transmission from $97.00 to $109.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 9th. Finally, Oppenheimer upped their price objective on shares of Allison Transmission from $90.00 to $115.00 and gave the company an “outperform” rating in a research report on Wednesday, October 30th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $92.25.

Allison Transmission Stock Performance

The company has a debt-to-equity ratio of 1.48, a current ratio of 2.83 and a quick ratio of 2.25. The stock’s 50-day moving average price is $95.24 and its 200 day moving average price is $84.54. The firm has a market cap of $9.50 billion, a P/E ratio of 13.21, a price-to-earnings-growth ratio of 1.91 and a beta of 0.98.

Allison Transmission (NYSE:ALSN) last announced its quarterly earnings data on Tuesday, October 29th. The auto parts company reported $2.27 earnings per share for the quarter, beating the consensus estimate of $2.01 by $0.26. Allison Transmission had a return on equity of 51.13% and a net margin of 22.66%. The company had revenue of $824.00 million during the quarter, compared to analysts’ expectations of $790.08 million. During the same quarter last year, the company earned $1.76 EPS. Allison Transmission’s revenue for the quarter was up 12.0% compared to the same quarter last year. As a group, equities analysts predict that Allison Transmission Holdings, Inc. will post 8.18 EPS for the current year.

Allison Transmission Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 30th. Investors of record on Monday, August 19th were paid a $0.25 dividend. The ex-dividend date was Monday, August 19th. This represents a $1.00 annualized dividend and a dividend yield of 0.91%. Allison Transmission’s dividend payout ratio is presently 12.18%.

Insiders Place Their Bets

In related news, VP Thomas Eifert sold 1,741 shares of the business’s stock in a transaction that occurred on Monday, October 7th. The stock was sold at an average price of $100.00, for a total transaction of $174,100.00. Following the transaction, the vice president now directly owns 9,601 shares of the company’s stock, valued at approximately $960,100. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, VP Thomas Eifert sold 1,741 shares of the stock in a transaction dated Monday, October 7th. The shares were sold at an average price of $100.00, for a total value of $174,100.00. Following the transaction, the vice president now directly owns 9,601 shares of the company’s stock, valued at $960,100. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP John Coll sold 2,000 shares of the business’s stock in a transaction that occurred on Thursday, August 29th. The stock was sold at an average price of $90.98, for a total value of $181,960.00. Following the sale, the senior vice president now owns 12,420 shares of the company’s stock, valued at approximately $1,129,971.60. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 5,741 shares of company stock valued at $546,060. 0.93% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ALSN. GSA Capital Partners LLP bought a new stake in Allison Transmission during the first quarter worth about $1,229,000. Sumitomo Mitsui Trust Holdings Inc. acquired a new position in Allison Transmission during the first quarter valued at approximately $1,342,000. Susquehanna Fundamental Investments LLC bought a new stake in Allison Transmission during the first quarter worth $1,120,000. State Board of Administration of Florida Retirement System boosted its holdings in shares of Allison Transmission by 11.4% in the 1st quarter. State Board of Administration of Florida Retirement System now owns 99,254 shares of the auto parts company’s stock valued at $8,055,000 after purchasing an additional 10,196 shares in the last quarter. Finally, Harbor Capital Advisors Inc. increased its stake in shares of Allison Transmission by 238.0% in the 2nd quarter. Harbor Capital Advisors Inc. now owns 16,191 shares of the auto parts company’s stock valued at $1,229,000 after purchasing an additional 11,401 shares during the last quarter. Institutional investors and hedge funds 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.