Kendall Capital Management Buys 4,620 Shares of Allison Transmission Holdings, Inc. (NYSE:ALSN)

Kendall Capital Management lifted its stake in Allison Transmission Holdings, Inc. (NYSE:ALSN) by 87.0% in the fourth quarter, HoldingsChannel.com reports. The fund owned 9,930 shares of the auto parts company’s stock after purchasing an additional 4,620 shares during the period. Kendall Capital Management’s holdings in Allison Transmission were worth $1,073,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in ALSN. US Bancorp DE grew its stake in shares of Allison Transmission by 14.3% in the third quarter. US Bancorp DE now owns 8,621 shares of the auto parts company’s stock worth $828,000 after acquiring an additional 1,079 shares during the period. QRG Capital Management Inc. grew its stake in shares of Allison Transmission by 7.6% in the third quarter. QRG Capital Management Inc. now owns 4,607 shares of the auto parts company’s stock worth $443,000 after acquiring an additional 326 shares during the period. Concurrent Investment Advisors LLC bought a new stake in shares of Allison Transmission in the third quarter worth approximately $281,000. Capital Performance Advisors LLP bought a new stake in shares of Allison Transmission in the third quarter worth approximately $82,000. Finally, CWA Asset Management Group LLC bought a new stake in shares of Allison Transmission in the third quarter worth approximately $947,000. 96.90% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts recently issued reports on ALSN shares. Citigroup dropped their price objective on shares of Allison Transmission from $120.00 to $115.00 and set a “neutral” rating on the stock in a report on Wednesday, February 12th. StockNews.com downgraded shares of Allison Transmission from a “strong-buy” rating to a “buy” rating in a report on Thursday, February 13th. Morgan Stanley raised 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. Finally, The Goldman Sachs Group raised their price objective on shares of Allison Transmission from $82.00 to $94.00 and gave the stock a “sell” rating in a report on Thursday, December 12th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $100.75.

Allison Transmission Price Performance

Shares of NYSE:ALSN opened at $98.12 on Friday. 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 Holdings, Inc. has a 1-year low of $71.49 and a 1-year high of $122.53. The company has a market capitalization of $8.39 billion, a P/E ratio of 11.81 and a beta of 1.02. The firm’s 50 day simple moving average is $109.32 and its two-hundred day simple moving average is $105.44.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings results on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share 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%. Research analysts expect that Allison Transmission Holdings, Inc. will post 9.06 EPS for the current fiscal year.

Allison Transmission Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Monday, March 3rd will be given a dividend of $0.27 per share. The ex-dividend date is Monday, March 3rd. This represents a $1.08 annualized dividend and a dividend yield of 1.10%. This is a boost from Allison Transmission’s previous quarterly dividend of $0.25. Allison Transmission’s dividend payout ratio (DPR) is presently 13.00%.

Allison Transmission announced that its board has initiated a stock repurchase plan on Thursday, February 20th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to buy up to 57.1% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, SVP John Coll sold 2,000 shares of Allison Transmission stock in a transaction that occurred on Tuesday, December 31st. The shares were sold at an average price of $108.40, for a total transaction of $216,800.00. Following the sale, the senior vice president now owns 6,420 shares in the company, valued at $695,928. This trade represents a 23.75 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 1.10% of the company’s stock.

Allison Transmission 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.