Squarepoint Ops LLC has significantly reduced its investment in Allison Transmission Holdings, Inc. (NYSE:ALSN), cutting its position by 49.6% during the second quarter of 2023. According to the company’s recent Form 13F filing with the Securities and Exchange Commission, Squarepoint now holds 27,146 shares of the auto parts manufacturer, down from 53,883 shares after selling 26,737 shares in the period. The current value of Squarepoint’s holdings is approximately $2.58 million.
Several other institutional investors have also adjusted their positions in Allison Transmission. Dimensional Fund Advisors LP increased its stake by 0.5% during the first quarter, now owning 1,867,799 shares worth around $178.7 million after acquiring an additional 10,208 shares. Similarly, Raymond James Financial Inc. raised its stake by 3.0%, now holding 391,430 shares valued at about $37.4 million. Northern Trust Corp also lifted its position by 2.2%, owning 542,447 shares worth $51.9 million after purchasing 11,636 shares.
New entries into the stock include Quantbot Technologies LP, which acquired a position valued at approximately $2.11 million, and HSBC Holdings PLC, which invested around $513,000. Currently, institutional investors and hedge funds control 96.90% of Allison Transmission’s stock.
Analyst Ratings and Stock Performance
Recent evaluations from equity research analysts reflect a mix of outlooks on Allison Transmission. Citigroup has raised its target price from $90.00 to $100.00 while maintaining a “neutral” rating. Zacks Research upgraded its rating from “strong sell” to “hold,” reflecting improved sentiment. Conversely, Weiss Ratings downgraded Allison from a “buy (b-)” to a “hold (c+)” rating.
Raymond James Financial has changed its rating from “outperform” to “strong-buy,” increasing the target price from $105.00 to $110.00. On the other hand, JPMorgan Chase & Co. set a revised price target of $87.00, lowering its previous estimate of $90.00.
Overall, one analyst has rated the stock as a Strong Buy, seven have assigned a Hold rating, and two have given a Sell rating. According to MarketBeat.com, the average rating for Allison Transmission is “Hold,” with an average target price of $93.88.
Financial Results and Dividend Announcement
Allison Transmission’s stock opened at $98.27 on the trading day following these developments. The company reported a current ratio of 3.82, a quick ratio of 3.06, and a debt-to-equity ratio of 1.30. The stock has a market capitalization of approximately $8.18 billion, a P/E ratio of 12.04, and a beta of 0.99. Over the past year, Allison Transmission’s stock has experienced a low of $76.01 and a high of $121.81.
On October 29, 2023, the company released its earnings results, reporting an earnings per share (EPS) of $1.63 for the quarter, falling short of the consensus estimate of $1.95 by $0.32. The reported revenue was $693 million, significantly lower than analysts’ expectations of $779.97 million. The company’s net margin was 22.78%, and it achieved a return on equity of 40.46%. Compared to the same quarter last year, quarterly revenue decreased by 15.9%, with last year’s EPS at $2.27.
Additionally, Allison Transmission declared a quarterly dividend of $0.27 per share, paid on December 5, 2023, to stockholders of record as of November 21, 2023. This translates to an annualized dividend of $1.08 and a dividend yield of 1.1%. The dividend payout ratio stands at 13.24%.
Allison Transmission Holdings, Inc., along with its subsidiaries, is recognized for designing, manufacturing, and selling fully automatic transmissions for medium- and heavy-duty commercial vehicles, as well as electrified propulsion systems globally. It offers a range of products, including commercial-duty on-highway, off-highway, and defense fully automatic transmissions.
