Morgan Stanley Has Lowered Expectations for Allison Transmission (NYSE:ALSN) Stock Price

Allison Transmission (NYSE:ALSN) had its target price cut by Morgan Stanley from $112.00 to $94.00 in a report issued on Wednesday,Benzinga reports. They currently have an equal weight rating on the auto parts company’s stock.

Several other research firms have also recently commented on ALSN. Robert W. Baird cut their price target on Allison Transmission from $123.00 to $100.00 and set a “neutral” rating on the stock in a research note on Tuesday. JPMorgan Chase & Co. cut their target price on Allison Transmission from $110.00 to $98.00 and set a “neutral” rating on the stock in a research report on Friday, April 11th. StockNews.com raised shares of Allison Transmission from a “hold” rating to a “buy” rating in a research report on Friday, April 11th. Raymond James cut their price target on shares of Allison Transmission from $115.00 to $110.00 and set an “outperform” rating on the stock in a report on Monday. Finally, Citigroup decreased their price objective on shares of Allison Transmission from $108.00 to $95.00 and set a “neutral” rating for the company in a report on Tuesday, April 8th. Two analysts have rated the stock with a sell rating, four have given a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $97.88.

Allison Transmission Stock Down 1.3 %

Shares of NYSE:ALSN opened at $87.90 on Wednesday. The company has a 50 day moving average of $96.99 and a two-hundred day moving average of $106.03. Allison Transmission has a 52-week low of $71.49 and a 52-week high of $122.53. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45. The company has a market capitalization of $7.49 billion, a price-to-earnings ratio of 10.58 and a beta of 0.95.

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

Allison Transmission Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Monday, March 3rd were given a $0.27 dividend. This is an increase from Allison Transmission’s previous quarterly dividend of $0.25. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.23%. The ex-dividend date was Monday, March 3rd. Allison Transmission’s dividend payout ratio (DPR) is presently 13.00%.

Allison Transmission announced that its Board of Directors has authorized a share repurchase plan on Thursday, February 20th that allows the company to buyback $5.00 billion in shares. This buyback authorization allows the auto parts company to buy up to 57.1% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, SVP John Coll sold 1,788 shares of the business’s stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $95.33, for a total transaction of $170,450.04. Following the completion of the transaction, the senior vice president now owns 15,388 shares in the company, valued at $1,466,938.04. The trade was a 10.41 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Ryan A. Milburn sold 4,546 shares of the company’s stock in a transaction on Thursday, March 6th. The stock was sold at an average price of $96.20, for a total value of $437,325.20. Following the transaction, the vice president now owns 14,138 shares of the company’s stock, 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 company insiders.

Institutional Investors Weigh In On Allison Transmission

A number of hedge funds have recently added to or reduced their stakes in the stock. Ritholtz Wealth Management increased its holdings in shares of Allison Transmission by 18.4% in the 1st quarter. Ritholtz Wealth Management now owns 24,602 shares of the auto parts company’s stock worth $2,354,000 after acquiring an additional 3,818 shares during the period. Salem Investment Counselors Inc. increased its stake in shares of Allison Transmission by 0.4% in the first quarter. Salem Investment Counselors Inc. now owns 56,892 shares of the auto parts company’s stock valued at $5,443,000 after purchasing an additional 250 shares during the period. GAMMA Investing LLC raised its holdings in shares of Allison Transmission by 9.8% during the first quarter. GAMMA Investing LLC now owns 1,550 shares of the auto parts company’s stock valued at $148,000 after buying an additional 138 shares during the last quarter. Pallas Capital Advisors LLC boosted its position in shares of Allison Transmission by 58.7% during the first quarter. Pallas Capital Advisors LLC now owns 4,236 shares of the auto parts company’s stock worth $405,000 after buying an additional 1,567 shares during the period. Finally, City State Bank boosted its position in shares of Allison Transmission by 132.1% during the first quarter. City State Bank now owns 1,625 shares of the auto parts company’s stock worth $155,000 after buying an additional 925 shares during the period. 96.90% of the stock is currently owned by institutional investors.

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.