Acadian Asset Management LLC recently increased its stake in Allison Transmission Holdings, Inc. (NYSE:ALSN) by 3.0% in the first quarter of this year, according to the company’s most recent Form 13F filing with the Securities and Exchange Commission. The investment firm now owns 73,716 shares of the auto parts company’s stock, purchasing an additional 2,138 shares during the quarter. As of its most recent filing, Acadian Asset Management LLC’s stake in Allison Transmission is valued at approximately $3,333,000, representing around 0.08% ownership.
Allison Transmission recently announced its quarterly earnings results on Thursday, July 27th. The company reported earnings per share (EPS) of $1.92 for the quarter, surpassing analysts’ consensus estimates of $1.61 by $0.31 per share. This positive earnings beat resulted in a return on equity of 67.93% and a net margin of 21.17% for Allison Transmission. During the quarter, the company generated revenue of $783 million compared to analysts’ expectations of $735.95 million, marking a growth rate of 17.9% from the same period last year when it posted EPS of $1.26.
Looking ahead, sell-side analysts predict that Allison Transmission Holdings, Inc. will post EPS of 6.93 for the current fiscal year.
These financial updates indicate a favorable outlook for Allison Transmission Holdings as it continues to perform well in terms of both earnings and revenue growth rate compared to industry expectations and previous quarters.
As an auto parts manufacturer specializing in transmissions for commercial vehicles, Allison Transmission plays a vital role in various industries such as trucking and construction companies that rely heavily on reliable transmission systems for their operations.
The increase in Acadian Asset Management LLC’s position suggests confidence in Allison Transmission’s future prospects based on its financial performance so far this year. This investment firm’s decision to add more shares to its portfolio is likely influenced by the positive earnings beat and revenue growth achieved by Allison Transmission in the recently reported quarter.
This news can potentially attract more attention from both investors and market analysts who closely monitor the performance of auto parts companies like Allison Transmission. The company’s ability to consistently meet or exceed expectations can help solidify its position as a reliable investment option in an industry that continues to evolve and face various challenges.
As of September 1, 2023, Allison Transmission Holdings, Inc. remains well-positioned in the market, benefiting from its strong financial results and positive investor sentiment. Investors will continue to monitor future quarterly reports from the company for further insights into its financial performance and growth potential within this dynamic industry.
Institutional Investors and Hedge Funds Show Interest in Allison Transmission Holdings, Inc. (ALSN) Stock: What’s Driving the Decisions?
Allison Transmission Holdings, Inc. (ALSN) has recently caught the attention of institutional investors and hedge funds, with some increasing their stakes in the company while others chose to reduce their positions. This flurry of activity in ALSN stock has left many bewildered and curious about the underlying factors driving these decisions.
One notable investor is ICA Group Wealth Management LLC, who purchased a new stake in Allison Transmission in the fourth quarter of last year. Their investment was valued at approximately $25,000, showcasing their confidence in the company’s potential for growth and profitability.
Canada Pension Plan Investment Board also exhibited optimism by increasing its stake in Allison Transmission by 157.4% during the first quarter of this year. The pension board now owns 1,300 shares of ALSN stock valued at $51,000 after acquiring an additional 795 shares. This move signifies Canada Pension Plan Investment Board’s belief that Allison Transmission will continue to thrive in the auto parts industry.
Similarly, Fred Alger Management LLC raised its stake in Allison Transmission by 100.9% during the third quarter of last year. The management firm now boasts ownership of 2,144 shares valued at $72,000 after purchasing an additional 1,077 shares. Edmond DE Rothschild Holding S.A., on the other hand, chose to enter into a new stake in Allison Transmission worth approximately $73,000 during the first quarter.
In addition to these institutional investors, IFP Advisors Inc sought to capitalize on the potential gains from investing in Allison Transmission by raising its stake by 26% during the fourth quarter of last year. IFP Advisors Inc now holds 1,399 shares worth $77,000 after acquiring an extra 289 shares.
Together, hedge funds and other institutional investors own a significant portion – approximately 96.57% – of ALSN stock. This fact speaks volumes about the perceived value and attractiveness of investing in Allison Transmission.
While institutional investors made their moves, the market witnessed a series of analyst reports on ALSN stock. Credit Suisse Group raised its price target on Allison Transmission from $49.00 to $57.00, signaling the firm’s positive outlook for the company. Citigroup also upped its price target from $62.00 to $63.00 but maintained a “neutral” rating for the stock.
Some analysts were more enthusiastic about Allison Transmission’s prospects, with StockNews.com initiating coverage and giving the company a “strong-buy” rating. However, The Goldman Sachs Group issued a “sell” rating and raised concerns by increasing their price target from $42.00 to $48.00. Oppenheimer provided a more favorable forecast, increasing their price objective on ALSN stock from $53.00 to $67.00.
These varying opinions reflect the complexity and uncertainty surrounding Allison Transmission Holdings, Inc., leaving potential investors perplexed in making an informed decision about buying or selling shares of the company.
In other news related to Allison Transmission, John Coll, Senior Vice President (SVP), sold 2,000 shares of ALSN stock in two separate transactions totaling $108,000 in value earlier this year and disclosed them with the SEC.
Another insider transaction involved VP Ryan A. Milburn who sold 7,372 shares of Allison Transmission stock at an average price of $59.15 per share, amounting to a total value of approximately $436,053.
Currently trading at around $60.43 per share as of September 1st, 2023, ALSN is displaying significant volatility within its industry segment and across various markets globally due to factors such as economic conditions and regulatory changes impacting the auto parts sector.
It is important for potential investors to consider all available information before making any financial decisions regarding ALSN stock as it continues to play a notable role within institutional investment portfolios and attracts the attention of hedge funds worldwide.