Allison Transmission (NYSE:ALSN) Shares Gap Down After Analyst Downgrade

Allison Transmission Holdings, Inc. (NYSE:ALSN) gapped down prior to trading on Wednesday after StockNews.com downgraded the stock from a strong-buy rating to a buy rating. The stock had previously closed at $114.19, but opened at $97.70. Allison Transmission shares last traded at $98.86, with a volume of 744,148 shares trading hands.

Several other research analysts have also issued reports on the stock. The Goldman Sachs Group raised their target price on shares of Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a research note on Thursday, December 12th. Citigroup reduced their price objective on shares of Allison Transmission from $120.00 to $115.00 and set a “neutral” rating on the stock in a research note on Wednesday. Robert W. Baird lifted their price objective on shares of Allison Transmission from $103.00 to $108.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 30th. Morgan Stanley lifted their price objective on shares of Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a research note on Tuesday, December 17th. Finally, Bank of America lifted their price objective on shares of Allison Transmission from $67.00 to $77.00 and gave the stock an “underperform” rating in a research note on Wednesday, October 30th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $100.75.

Insider Buying and Selling at Allison Transmission

In related news, SVP John Coll sold 2,000 shares of the business’s stock in a transaction on Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total transaction of $216,800.00. Following the transaction, the senior vice president now directly owns 6,420 shares in the company, valued at approximately $695,928. The trade was a 23.75 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO David S. Graziosi sold 5,326 shares of Allison Transmission stock in a transaction on Monday, November 25th. The stock was sold at an average price of $120.12, for a total transaction of $639,759.12. Following the transaction, the chief executive officer now directly owns 168,833 shares of the company’s stock, valued at approximately $20,280,219.96. This trade represents a 3.06 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 20,639 shares of company stock valued at $2,448,077. 1.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Allison Transmission

Several institutional investors and hedge funds have recently bought and sold shares of the company. FMR LLC increased its position in Allison Transmission by 1.9% during the 4th 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. Loomis Sayles & Co. L P increased its position in Allison Transmission by 301.1% during the 4th quarter. Loomis Sayles & Co. L P now owns 2,378,731 shares of the auto parts company’s stock valued at $257,046,000 after purchasing an additional 1,785,687 shares during the period. Geode Capital Management LLC increased its position in Allison Transmission by 4.2% during the 3rd quarter. Geode Capital Management LLC now owns 1,961,834 shares of the auto parts company’s stock valued at $188,511,000 after purchasing an additional 79,506 shares during the period. State Street Corp increased its position in Allison Transmission by 0.8% during the 3rd quarter. State Street Corp now owns 1,682,076 shares of the auto parts company’s stock valued at $161,597,000 after purchasing an additional 13,252 shares during the period. Finally, Allianz Asset Management GmbH increased its position in Allison Transmission by 7.0% during the 4th quarter. Allianz Asset Management GmbH now owns 1,061,351 shares of the auto parts company’s stock valued at $114,690,000 after purchasing an additional 69,008 shares during the period. Institutional investors own 96.90% of the company’s stock.

Allison Transmission Price Performance

The stock has a market capitalization of $8.81 billion, a P/E ratio of 12.38, a PEG ratio of 1.82 and a beta of 1.00. The business has a fifty day simple moving average of $113.25 and a 200-day simple moving average of $103.64. The company has a debt-to-equity ratio of 1.48, a quick ratio of 2.25 and a current ratio of 2.83.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings results on Tuesday, February 11th. The auto parts company reported $2.01 EPS for the quarter, beating analysts’ consensus estimates of $1.90 by $0.11. Allison Transmission had a return on equity of 51.13% and a net margin of 22.66%. Sell-side analysts expect that Allison Transmission Holdings, Inc. will post 8.22 earnings per share for the current fiscal year.

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.