Zacks Investment Research downgraded shares of Allison Transmission (NYSE:ALSN) from a buy rating to a hold rating in a research report report published on Monday.
According to Zacks, “Allison Transmission has raised its guidance for 2018 on the back of increased demand for global on and off-highway products, price improvement of certain products, and its growth initiatives. Also, a strong cash flow helps the company to return capital to shareholders, pay debt, and invest in its strategy of developing product and technology. Except for the company’s huge presence in North America, it focuses to expand in emerging and under-served markets through its diverse product range, thus, enabling it to add new customers. However, insufficient product line to match the global shift toward electric vehicles makes the company vulnerable to compete in the market. Further, roughly 49% of the company’s yearly net sales is contributed by its top five OEM customers. High customer concentration makes its susceptible to any loss of prime customers.”
Several other equities analysts have also weighed in on the stock. Oppenheimer set a $50.00 target price on shares of Allison Transmission and gave the company a buy rating in a report on Monday, October 29th. Piper Jaffray Companies set a $28.00 target price on shares of Allison Transmission and gave the company a sell rating in a report on Monday, January 14th. Mizuho lowered shares of Allison Transmission from a buy rating to a neutral rating and set a $53.00 target price on the stock. in a report on Wednesday, January 16th. Macquarie lowered shares of Allison Transmission from a neutral rating to an underperform rating in a report on Thursday, November 29th. Finally, ValuEngine lowered shares of Allison Transmission from a buy rating to a hold rating in a report on Wednesday, October 24th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $48.55.
NYSE:ALSN opened at $47.07 on Monday. The company has a current ratio of 1.71, a quick ratio of 1.33 and a debt-to-equity ratio of 3.69. The stock has a market capitalization of $6.15 billion, a price-to-earnings ratio of 17.70, a PEG ratio of 0.97 and a beta of 1.38. Allison Transmission has a 1-year low of $37.41 and a 1-year high of $53.76.
In other news, Director Lawrence E. Dewey sold 106,176 shares of the company’s stock in a transaction that occurred on Wednesday, January 9th. The shares were sold at an average price of $46.13, for a total value of $4,897,898.88. Following the transaction, the director now directly owns 215,152 shares in the company, valued at approximately $9,924,961.76. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director William R. Harker sold 2,030 shares of the company’s stock in a transaction that occurred on Friday, January 18th. The stock was sold at an average price of $50.01, for a total transaction of $101,520.30. The disclosure for this sale can be found here. Corporate insiders own 8.40% of the company’s stock.
Hedge funds have recently modified their holdings of the company. Northern Trust Corp lifted its holdings in Allison Transmission by 0.6% during the 2nd quarter. Northern Trust Corp now owns 653,205 shares of the auto parts company’s stock worth $26,449,000 after buying an additional 4,001 shares in the last quarter. Bank of Montreal Can lifted its holdings in Allison Transmission by 144.3% during the 3rd quarter. Bank of Montreal Can now owns 295,339 shares of the auto parts company’s stock worth $15,361,000 after buying an additional 174,435 shares in the last quarter. Callahan Advisors LLC acquired a new stake in Allison Transmission during the 3rd quarter worth approximately $930,000. First Hawaiian Bank acquired a new stake in Allison Transmission during the 3rd quarter worth approximately $773,000. Finally, MERIAN GLOBAL INVESTORS UK Ltd lifted its holdings in Allison Transmission by 69.5% during the 3rd quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 1,049,342 shares of the auto parts company’s stock worth $54,576,000 after buying an additional 430,167 shares in the last quarter.
Allison Transmission Company Profile
Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles worldwide. It offers 13 transmission product lines with approximately 100 product models for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school, transit, and hybrid-transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles.
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