Allison Transmission (NYSE:ALSN) Trading Down 5.2% – Time to Sell?

Allison Transmission Holdings, Inc. (NYSE:ALSN) shares fell 5.2% during mid-day trading on Tuesday . The company traded as low as $119.15 and last traded at $122.3140. 171,301 shares were traded during trading, a decline of 80% from the average session volume of 847,114 shares. The stock had previously closed at $129.04.

Analyst Ratings Changes

ALSN has been the subject of a number of research reports. Weiss Ratings downgraded Allison Transmission from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, February 25th. Morgan Stanley increased their target price on Allison Transmission from $109.00 to $117.00 and gave the company an “equal weight” rating in a research report on Monday, March 16th. Oppenheimer increased their target price on Allison Transmission from $115.00 to $135.00 and gave the company an “outperform” rating in a research report on Tuesday, February 24th. Citigroup increased their target price on Allison Transmission from $130.00 to $135.00 and gave the company a “neutral” rating in a research report on Monday, April 13th. Finally, JPMorgan Chase & Co. increased their target price on Allison Transmission from $87.00 to $115.00 and gave the company a “neutral” rating in a research report on Wednesday, January 14th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $115.38.

Allison Transmission Stock Performance

The company has a market capitalization of $10.24 billion, a P/E ratio of 19.16, a P/E/G ratio of 0.70 and a beta of 1.01. The business has a 50-day moving average of $122.33 and a 200-day moving average of $106.76. The company has a debt-to-equity ratio of 1.55, a current ratio of 4.85 and a quick ratio of 4.17.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings results on Monday, May 4th. The auto parts company reported $2.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.10 by $0.47. The company had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.38 billion. Allison Transmission had a return on equity of 37.93% and a net margin of 14.88%.Allison Transmission’s revenue was up 83.6% on a year-over-year basis. During the same period last year, the company earned $2.23 earnings per share. On average, sell-side analysts anticipate that Allison Transmission Holdings, Inc. will post 9.68 EPS for the current year.

Allison Transmission Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Monday, May 18th will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Monday, May 18th. Allison Transmission’s dividend payout ratio (DPR) is 15.83%.

Insider Buying and Selling at Allison Transmission

In other news, insider Eric C. Scroggins sold 1,313 shares of the firm’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $114.40, for a total transaction of $150,207.20. Following the transaction, the insider owned 17,654 shares in the company, valued at approximately $2,019,617.60. This trade represents a 6.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Allison Transmission

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Millstone Evans Group LLC acquired a new stake in Allison Transmission in the first quarter worth about $26,000. Cedar Mountain Advisors LLC acquired a new stake in Allison Transmission in the first quarter worth about $27,000. Rossby Financial LCC boosted its holdings in Allison Transmission by 107.0% in the third quarter. Rossby Financial LCC now owns 296 shares of the auto parts company’s stock worth $25,000 after acquiring an additional 153 shares in the last quarter. Larson Financial Group LLC boosted its holdings in Allison Transmission by 536.7% in the fourth quarter. Larson Financial Group LLC now owns 312 shares of the auto parts company’s stock worth $31,000 after acquiring an additional 263 shares in the last quarter. Finally, Transamerica Financial Advisors LLC boosted its holdings in Allison Transmission by 2,112.5% in the fourth quarter. Transamerica Financial Advisors LLC now owns 354 shares of the auto parts company’s stock worth $35,000 after acquiring an additional 338 shares in the last quarter. Hedge funds and other institutional investors own 96.90% of the company’s stock.

Allison Transmission Company Profile

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company’s products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison’s core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.