Allison Transmission Holdings, Inc. (NYSE:ALSN) to Issue 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 an increase from Allison Transmission’s previous quarterly dividend of $0.25.

Allison Transmission has increased its dividend by an average of 9.6% annually over the last three years. Allison Transmission has a dividend payout ratio of 9.4% meaning its dividend is sufficiently covered by earnings. 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

ALSN traded down $1.44 during trading on Thursday, reaching $102.34. 716,472 shares of the company’s stock were exchanged, compared to its average volume of 612,136. The stock has a market capitalization of $8.75 billion, a P/E ratio of 12.31 and a beta of 1.00. Allison Transmission has a 1 year low of $69.80 and a 1 year high of $122.53. The company’s fifty day simple moving average is $112.09 and its 200-day simple moving average is $104.22. 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 (NYSE:ALSN) last announced its quarterly earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share for the quarter, topping the consensus estimate of $1.90 by $0.11. Allison Transmission had a return on equity of 47.95% and a net margin of 22.67%. As a group, research analysts predict that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Allison Transmission news, SVP John Coll sold 2,000 shares of Allison Transmission 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 transaction, the senior vice president now directly owns 6,420 shares of the company’s stock, valued at $695,928. The trade was a 23.75 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David S. Graziosi sold 1,723 shares of the stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $120.26, for a total transaction of $207,207.98. Following the completion of the sale, 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 position. The disclosure for this sale can be found here. Insiders have sold 20,639 shares of company stock valued at $2,448,077 in the last ninety days. 1.10% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. The Goldman Sachs Group lifted their price objective on shares of Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a report on Thursday, December 12th. Citigroup dropped their price objective on Allison Transmission from $120.00 to $115.00 and set a “neutral” rating on the stock in a report on Wednesday, February 12th. Robert W. Baird increased their target price on Allison Transmission from $103.00 to $108.00 and gave the company a “neutral” rating in a research report 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 report on Wednesday, October 30th. Finally, Bank of America lifted their price objective on Allison Transmission from $67.00 to $77.00 and gave the stock an “underperform” rating in a report on Wednesday, October 30th. Two analysts have rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat.com, Allison Transmission has an average rating of “Hold” and a consensus target price of $100.75.

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.