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

Allison Transmission (NYSE:ALSN) had its price objective cut by stock analysts at Citigroup from $115.00 to $108.00 in a report released on Monday,Benzinga reports. The brokerage presently has a “neutral” rating on the auto parts company’s stock. Citigroup’s price target points to a potential upside of 14.09% from the company’s current price.

Several other research analysts have also commented on ALSN. The Goldman Sachs Group lifted their price target on Allison Transmission from $82.00 to $94.00 and gave the stock a “sell” rating in a research report on Thursday, December 12th. StockNews.com lowered Allison Transmission from a “buy” rating to a “hold” rating in a report on Thursday. Morgan Stanley increased their price objective on shares of Allison Transmission from $110.00 to $112.00 and gave the company an “equal weight” rating in a research note on Tuesday, December 17th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Allison Transmission from $129.00 to $110.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 18th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $101.13.

Allison Transmission Price Performance

Shares of NYSE:ALSN traded down $1.40 during midday trading on Monday, hitting $94.67. The company’s stock had a trading volume of 123,373 shares, compared to its average volume of 618,581. The company has a market cap of $8.10 billion, a P/E ratio of 11.37 and a beta of 1.02. The business’s 50 day simple moving average is $105.16 and its 200 day simple moving average is $106.45. Allison Transmission has a 12-month low of $71.49 and a 12-month high of $122.53. The company has a debt-to-equity ratio of 1.45, a quick ratio of 2.42 and a current ratio of 3.04.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share (EPS) 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%. On average, analysts forecast that Allison Transmission will post 9.06 EPS for the current year.

Allison Transmission declared that its board has authorized a stock buyback plan on Thursday, February 20th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the auto parts company to reacquire up to 57.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Allison Transmission

In other news, SVP John Coll sold 2,000 shares of the stock in a transaction on Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total value of $216,800.00. Following the completion of the transaction, the senior vice president now owns 6,420 shares in the company, valued at approximately $695,928. This represents a 23.75 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Ryan A. Milburn sold 4,546 shares of the firm’s stock in a transaction that occurred 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 $1,360,075.60. This trade represents a 24.33 % decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Allison Transmission

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Loomis Sayles & Co. L P increased its holdings in shares of Allison Transmission by 301.1% in the fourth quarter. Loomis Sayles & Co. L P now owns 2,378,731 shares of the auto parts company’s stock worth $257,046,000 after acquiring an additional 1,785,687 shares in the last quarter. Norges Bank acquired a new stake in Allison Transmission during the fourth quarter worth about $108,916,000. Caisse DE Depot ET Placement DU Quebec grew its position in Allison Transmission by 4,877.2% in the fourth quarter. Caisse DE Depot ET Placement DU Quebec now owns 444,518 shares of the auto parts company’s stock valued at $48,035,000 after acquiring an additional 435,587 shares during the last quarter. Raymond James Financial Inc. acquired a new position in Allison Transmission in the 4th quarter worth about $41,081,000. Finally, FMR LLC increased its holdings in Allison Transmission by 1.9% in the fourth quarter. FMR LLC now owns 12,993,015 shares of the auto parts company’s stock valued at $1,404,025,000 after purchasing an additional 247,318 shares during the period. Institutional investors and hedge funds own 96.90% of the company’s stock.

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.