Allison Transmission Holdings, Inc. (NYSE:ALSN) to Issue Quarterly Dividend of $0.27

Allison Transmission Holdings, Inc. (NYSE:ALSN) declared a quarterly dividend on Thursday, February 20th, RTT News reports. Investors of record on Monday, March 3rd will be given 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 1.07%. The ex-dividend date of this dividend is Monday, March 3rd. This is a positive change from Allison Transmission’s previous quarterly dividend of $0.25.

Allison Transmission has increased its dividend payment by an average of 9.6% per year over the last three years. Allison Transmission has a dividend payout ratio of 9.4% meaning 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 Down 1.6 %

ALSN opened at $100.76 on Friday. The company has a fifty day moving average price of $111.81 and a 200-day moving average price of $104.21. The firm has a market capitalization of $8.62 billion, a P/E ratio of 12.13 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 one year low of $71.35 and a one year high of $122.53.

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 analysts’ consensus estimates of $1.90 by $0.11. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. Equities research analysts expect that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ALSN shares. The Goldman Sachs Group boosted their price target on shares of Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a research report on Thursday, December 12th. Morgan Stanley lifted their price objective on shares of Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a report on Tuesday, December 17th. Citigroup dropped their price objective on shares of Allison Transmission from $120.00 to $115.00 and set a “neutral” rating for the company in a report on Wednesday, February 12th. Bank of America lifted their price objective 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, Oppenheimer lifted their price objective on shares of Allison Transmission from $90.00 to $115.00 and gave the stock an “outperform” rating in a report on Wednesday, October 30th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $100.75.

Insiders Place Their Bets

In other news, SVP John Coll sold 2,000 shares of the company’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 transaction, the senior vice president now directly owns 6,420 shares of the company’s stock, valued at approximately $695,928. This represents a 23.75 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO David S. Graziosi sold 1,723 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $120.26, for a total transaction of $207,207.98. Following the transaction, the chief executive officer now directly owns 168,833 shares of the company’s stock, valued at approximately $20,303,856.58. This trade represents a 1.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 20,639 shares of company stock valued at $2,448,077 over the last three months. Insiders own 1.10% of the company’s stock.

Allison Transmission declared that its board has approved a share repurchase plan on Thursday, February 20th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the auto parts company to repurchase up to 57.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

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.