Norris Perne & French LLP has decreased its holdings in Allison Transmission Holdings, Inc. (NYSE: ALSN), trimming its position by 14.1% during the third quarter of 2023. The investment firm now holds 256,329 shares of the auto parts manufacturer, following the sale of 42,069 shares in the period. This adjustment reduces Allison Transmission to approximately 1.5% of Norris Perne & French LLP’s total portfolio, ranking it as the firm’s 24th largest position. As per the latest filings with the Securities and Exchange Commission, the value of these holdings is estimated at $21,757,000.
Other institutional investors have also been active in the shares of Allison Transmission. For instance, Trust Co. of Toledo NA in Ohio purchased a new stake valued at $28,000 in the second quarter, while WPG Advisers LLC acquired a new position valued at approximately $34,000 during the first quarter. Notably, Cullen Frost Bankers Inc. significantly increased its stake by 3,108.3% in the second quarter, bringing its total to just 385 shares, valued at $37,000 after acquiring an additional 373 shares.
A significant majority, or 96.90%, of Allison Transmission’s stock is now held by hedge funds and institutional investors.
Wall Street Analysts Provide Insights on ALSN
Recent reports from equity analysts indicate a mixed outlook for Allison Transmission. Wells Fargo & Company initiated coverage on November 13, 2023, assigning an “equal weight” rating with a price target of $85.00. Meanwhile, Citigroup raised its target price from $100.00 to $105.00, maintaining a “neutral” rating as of December 19, 2023.
Further analysis from Zacks Research upgraded the stock from a “strong sell” to a “hold” rating on September 19, 2023. In contrast, Weiss Ratings downgraded the stock from a “buy (B-)” to a “hold (C+)” rating on October 24, 2023. Raymond James Financial also adjusted its price target from $110.00 to $115.00, categorizing the stock as a “strong buy” in a report released on December 22, 2023. Overall, one analyst has rated the stock as a Strong Buy, seven have issued a Hold rating, and two have recommended selling, resulting in a consensus rating of “Hold” and an average price target of $95.13.
Performance Metrics and Future Outlook
As of Monday, shares of Allison Transmission opened at $100.97. The company has experienced considerable fluctuation over the past year, with a low of $76.01 and a high of $121.81. Financial metrics indicate a strong position, with a market capitalization of $8.40 billion, a current ratio of 3.82, and a quick ratio of 3.06. The company’s debt-to-equity ratio stands at 1.30, while its price-to-earnings ratio is 12.37.
In its latest quarterly earnings report, released on October 29, 2023, Allison Transmission reported earnings per share (EPS) of $1.63, falling short of the consensus estimate of $1.95 by $0.32. Revenue for the quarter reached $693.00 million, significantly below the expected $779.97 million. The company has noted a year-over-year revenue decline of 15.9%, with EPS for the same quarter last year recorded at $2.27. Forecasts by sell-side analysts suggest that Allison Transmission will post an EPS of $9.06 for the current year.
Recently, Allison Transmission also declared a quarterly dividend of $0.27, which was paid to shareholders on December 5, 2023. This dividend reflects an annualized amount of $1.08 and a yield of 1.1%. The ex-dividend date was set for November 21, 2023, and the company’s current dividend payout ratio is 13.24%.
Allison Transmission Holdings Inc. specializes in designing, manufacturing, and marketing fully automatic transmissions and hybrid propulsion systems for commercial vehicles. The company’s offerings aim to enhance fuel efficiency and performance across various sectors, including on-highway trucks, buses, and military applications.
For ongoing updates on Allison Transmission and other financial news, interested parties can explore resources such as HoldingsChannel.com and MarketBeat.com for the latest insights and analyst ratings.
