Citigroup Cuts Allison Transmission (NYSE:ALSN) Price Target to $108.00

Allison Transmission (NYSE:ALSN) had its price target cut by Citigroup from $115.00 to $108.00 in a research note issued to investors on Monday morning,Benzinga reports. They currently have a neutral rating on the auto parts company’s stock.

A number of other equities research analysts also recently issued reports on ALSN. JPMorgan Chase & Co. cut their target price on shares of Allison Transmission from $129.00 to $110.00 and set a “neutral” rating for the company in a research report on Tuesday, March 18th. StockNews.com cut Allison Transmission from a “buy” rating to a “hold” rating in a research report on Thursday, March 27th. The Goldman Sachs Group boosted their target price on Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a research note on Thursday, December 12th. Finally, Morgan Stanley raised their price target on Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a research note on Tuesday, December 17th. Two analysts have rated the stock with a sell rating, five have given a hold rating and two have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $101.13.

Allison Transmission Stock Performance

Shares of ALSN stock opened at $98.96 on Monday. The company has a market capitalization of $8.43 billion, a price-to-earnings ratio of 11.91 and a beta of 0.95. Allison Transmission has a 1-year low of $71.49 and a 1-year high of $122.53. The company has a current ratio of 3.04, a quick ratio of 2.42 and a debt-to-equity ratio of 1.45. The stock’s fifty day simple moving average is $103.81 and its 200-day simple moving average is $106.54.

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

Allison Transmission Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Monday, March 3rd were issued a dividend of $0.27 per share. This is a positive change from Allison Transmission’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.09%. Allison Transmission’s dividend payout ratio is currently 13.00%.

Allison Transmission announced that its board has authorized a stock buyback program on Thursday, February 20th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the auto parts company to purchase up to 57.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In related news, VP Ryan A. Milburn sold 4,546 shares of Allison Transmission stock in a transaction on Thursday, March 6th. The shares were 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 in the company, valued at $1,360,075.60. This trade represents a 24.33 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Allison Transmission

Hedge funds and other institutional investors have recently made changes to their positions in the business. Transce3nd LLC bought a new stake in Allison Transmission during the 4th quarter valued at approximately $25,000. SRH Advisors LLC acquired a new stake in shares of Allison Transmission in the fourth quarter worth $26,000. Kestra Investment Management LLC bought a new position in Allison Transmission during the fourth quarter worth $30,000. Vermillion Wealth Management Inc. acquired a new position in Allison Transmission during the 4th quarter valued at $31,000. Finally, Thurston Springer Miller Herd & Titak Inc. bought a new stake in Allison Transmission in the 4th quarter valued at $31,000. 96.90% of the stock is owned by institutional investors and hedge funds.

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.