Allison Transmission Holdings, Inc. (NYSE: ALSN), a manufacturer of fully automatic transmission solutions for commercial and military vehicles, has received a mixed bag of recommendations from nine analysts who are covering the firm in the recent reports of Bloomberg Ratings. While three investment analysts have given the stock a sell rating this year, three more have suggested that it is worth holding on to while one analyst went as far as to issue a strong recommendation with a “buy” rating on the company.
The average 1-year price goal among brokerages that have covered Allison Transmission in the past year is $44.57 – another sign that experts take different views about its future prospects. A possible explanation may lie in its recent dividend history, which brokers evaluate alongside other data to form an overall picture of how the stock fits into investment portfolios.
Allison Transmission also announced recently that there would be a quarterly dividend payout this May 31st. Stockholders who were issued their shares before May 15th will receive $0.23 per share, marking an annualized dividend amounting to $0.92 and a yield of 1.88%. The ex-dividend date was set on Friday, May 12th.
Investors’ perceptions about Allison Transmission’s strengths and weaknesses obviously vary widely as well. Various institutional investors and hedge funds have reportedly recently altered their holdings of the business based on their assessments of its performance every quarter or so.
For instance, ICA Group Wealth Management LLC has acquired a new position in Allison Transmission during Q4 2022 worth $25k, while Quadrant Capital Group LLC raised its holdings by +34% during Q3 with 1,083 shares now valued at $37k after buying additional stock last quarter.
Another example is Arcus Capital Partners LLC which bought another position amounting to $42k again during Q4 of last year and Canada Pension Plan Investment Board which increased its stake to 1,300 shares valued currently at $51k after raising them by approximately 157% during their last earnings call.
Fred Alger Management LLC raised its position in Allison Transmission by a whopping +100.9% during Q3 of 2022 through to the end of the year. It now owns 2,144 shares that are worth around $72k as of this writing.
As seen in these instances, brokers and hedge funds attempt to create diverse portfolios with high and low-risk offerings to ensure that they can weather financial storms better. The range of recommendations points not only to general uncertainty about Allison Transmission’s future prospects but also reflects the diverse needs and strategies of its investor groups.
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Insider Trading, Dividend Payouts, and Strong Earnings: An Update on Allison Transmission (NYSE:ALSN)
Allison Transmission (NYSE:ALSN) has been a recent topic of discussion among analysts, with several research reports being published about the auto parts company. Goldman Sachs Group raised their price objective on Allison Transmission from $33.00 to $37.00, while Citigroup cut their price objective for the company from $55.00 to $52.00 and set a “neutral” rating. However, StockNews.com rated the company as a “strong-buy,” and Bank of America upped their price target on shares of Allison Transmission from $40.00 to $44.00.
In March, VP Ryan A. Milburn sold 2,050 shares of Allison Transmission stock at an average price of $48.36, amounting to a total transaction value of $99,138.00. Following this sale, Milburn now directly owns 13,827 shares of the company’s stock valued at approximately $668,673.72.
Additionally, VP Eric C. Scroggins sold 9,121 shares in February at an average price of $47.68 per share for a total transaction value of $434,889.28; following the sale Scroggins was left with 7,508 shares in Allison Transmission valued at approximately $357,981.44.
Over the last 90 days corporate insiders have sold 28,125 shares totaling over $1 million dollars’ worth in company stock sales alone which comes out to be around 1% ownership by those same insiders.
On Wednesday May 31st there will be a quarterly dividend paid out to shareholders who were recorded as such on Monday May 15th; each share is entitled to receive a dividend of $.23 each totaling an annualized dividend payment ratio of $.92 equaling out to about a percentage yield of 1%.
As for share prices opening this week Tuesday May 23rd were at around $49.06 for Allison Transmission (NYSE:ALSN) which is considered within the mid-range for this company. The firm currently has a market cap of $4.47 billion, along with a P/E ratio of 8.07 and P/E/G rate of 1.07. Additionally, the company has a beta of 0.98; which indicates that this stock is approximately equally as volatile as the rest of the market.
The company’s current ratio stands at 1.98 and a quick ratio at 1.49; indicating there are enough current assets to meet financial obligations in the near future and anticipated in the short term as well due to their continued increase in revenue throughout fiscal year 2017 reporting above estimated expectations month-over-month.
On April 27th, Allison Transmission posted quarterly earnings results stating an EPS of $1.85 compared to analysts’ expectations of $1.52 per share for Q1, showcasing that they beat Wall Street estimates by $0.33 higher per share! As such, it’s no surprise that the auto parts company had a net margin of over 20%, and a return on equity at an impressive rate of over 67%.
Despite having a relatively wide range between their recent high and low trading prices ($50-$32), there seems to be strong speculation amongst many analysts that my lead this company towards increasing gains on behalf of its shareholders as we look ahead throughout fiscal year which ends December 2017; banks may want to keep an eye on them through this period for potential risk analysis purposes but overall things seem promising based on their most recently released report results regarding revenue performances alone!
