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

Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN) gapped down before the market opened on Wednesday after Citigroup lowered their price target on the stock from $120.00 to $115.00. The stock had previously closed at $114.19, but opened at $97.70. Citigroup currently has a neutral rating on the stock. Allison Transmission shares last traded at $98.86, with a volume of 744,148 shares traded.

Other research analysts also recently issued reports about the stock. Robert W. Baird upped their target price on shares of Allison Transmission from $103.00 to $108.00 and gave the company a “neutral” rating in a research note on Wednesday, October 30th. Oppenheimer increased their price objective on shares of Allison Transmission from $90.00 to $115.00 and gave the company an “outperform” rating in a research note on Wednesday, October 30th. The Goldman Sachs Group increased their price objective 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. StockNews.com upgraded shares of Allison Transmission from a “buy” rating to a “strong-buy” rating in a research note on Thursday, December 26th. Finally, Bank of America increased their price objective on shares of Allison Transmission from $67.00 to $77.00 and gave the company an “underperform” rating in a research note on Wednesday, October 30th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $100.75.

Insiders Place Their Bets

In other news, CEO David S. Graziosi sold 11,590 shares of the firm’s 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 completion of the transaction, the chief executive officer now owns 168,833 shares in the company, valued at approximately $20,165,413.52. This trade represents a 6.42 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP John Coll sold 2,000 shares of the firm’s stock in a transaction dated Friday, November 15th. The shares were sold at an average price of $117.73, for a total transaction of $235,460.00. Following the transaction, the senior vice president now owns 8,420 shares of the company’s stock, valued at approximately $991,286.60. This trade represents a 19.19 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 22,639 shares of company stock valued at $2,683,537. Company insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ALSN. Creative Planning boosted its holdings in shares of Allison Transmission by 5.1% in the second quarter. Creative Planning now owns 4,781 shares of the auto parts company’s stock worth $363,000 after buying an additional 230 shares during the period. SG Americas Securities LLC acquired a new position in shares of Allison Transmission in the third quarter worth about $186,000. GAMMA Investing LLC boosted its holdings in shares of Allison Transmission by 152.6% in the third quarter. GAMMA Investing LLC now owns 1,033 shares of the auto parts company’s stock worth $99,000 after buying an additional 624 shares during the period. CWM LLC lifted its position in shares of Allison Transmission by 77.3% in the third quarter. CWM LLC now owns 10,651 shares of the auto parts company’s stock worth $1,023,000 after purchasing an additional 4,642 shares in the last quarter. Finally, Kapitalo Investimentos Ltda purchased a new stake in shares of Allison Transmission in the third quarter worth approximately $274,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Allison Transmission Stock Down 14.0 %

The business’s 50-day moving average price is $113.66 and its 200-day moving average price is $103.48. The company has a quick ratio of 2.25, a current ratio of 2.83 and a debt-to-equity ratio of 1.48. The firm has a market capitalization of $8.50 billion, a PE ratio of 11.96, a price-to-earnings-growth ratio of 1.82 and a beta of 1.00.

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

About Allison Transmission

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.