Allison Transmission Holdings, Inc. (NYSE:ALSN) Declares Dividend Increase – $0.27 Per Share

Allison Transmission Holdings, Inc. (NYSE:ALSN) announced a quarterly dividend on Thursday, February 20th, RTT News reports. Shareholders of record on Monday, March 3rd will be paid a dividend of 0.27 per share by the auto parts company on Friday, March 14th. This represents a $1.08 dividend on an annualized basis and a yield of 1.06%. This is a positive change from Allison Transmission’s previous quarterly dividend of $0.25.

Allison Transmission has raised its dividend payment by an average of 9.6% annually over the last three years. Allison Transmission has a payout ratio of 9.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Allison Transmission to earn $10.06 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 9.9%.

Allison Transmission Stock Performance

Shares of ALSN traded down $1.44 during trading hours on Thursday, hitting $102.34. The stock had a trading volume of 716,472 shares, compared to its average volume of 612,136. The firm has a market capitalization of $8.75 billion, a PE ratio of 12.31 and a beta of 1.00. The company has a debt-to-equity ratio of 1.45, a current ratio of 3.04 and a quick ratio of 2.42. Allison Transmission has a 12 month low of $69.80 and a 12 month high of $122.53. The stock has a fifty day moving average price of $112.09 and a 200 day moving average price of $104.22.

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 the consensus estimate of $1.90 by $0.11. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. Analysts anticipate that Allison Transmission will post 9.06 EPS for the current year.

Insider Buying and Selling

In other Allison Transmission news, CEO David S. Graziosi sold 11,590 shares of the stock in a transaction dated Friday, November 29th. The shares were sold at an average price of $119.44, for a total transaction of $1,384,309.60. Following the transaction, the chief executive officer now directly owns 168,833 shares in the company, valued at $20,165,413.52. This represents a 6.42 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP John Coll sold 2,000 shares of the business’s stock in a transaction dated Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total transaction of $216,800.00. Following the completion of the sale, the senior vice president now owns 6,420 shares of the company’s stock, valued at approximately $695,928. This represents a 23.75 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 20,639 shares of company stock worth $2,448,077. Corporate insiders own 1.10% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on ALSN. Citigroup decreased their target price on Allison Transmission from $120.00 to $115.00 and set a “neutral” rating on the stock in a report on Wednesday, February 12th. Oppenheimer upped their price target on shares of Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 30th. Morgan Stanley raised 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 report on Tuesday, December 17th. Bank of America upped their target price on shares of Allison Transmission from $67.00 to $77.00 and gave the stock an “underperform” rating in a report on Wednesday, October 30th. Finally, The Goldman Sachs Group raised their price target on Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a report on Thursday, December 12th. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and three have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $100.75.

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.