Allison Transmission Holdings, Inc. (NYSE:ALSN) Plans $0.25 Quarterly Dividend

Allison Transmission Holdings, Inc. (NYSE:ALSN) declared a quarterly dividend on Thursday, May 9th, Wall Street Journal reports. Investors of record on Monday, May 20th will be paid a dividend of 0.25 per share by the auto parts company on Friday, May 31st. This represents a $1.00 annualized dividend and a yield of 1.30%. The ex-dividend date of this dividend is Friday, May 17th.

Allison Transmission has raised its dividend payment by an average of 10.6% per year over the last three years and has raised its dividend every year for the last 5 years. Allison Transmission has a payout ratio of 11.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Allison Transmission to earn $8.61 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 11.6%.

Allison Transmission Price Performance

Shares of NYSE:ALSN opened at $76.82 on Friday. Allison Transmission has a twelve month low of $47.22 and a twelve month high of $83.42. The company’s 50 day moving average is $78.11 and its 200 day moving average is $65.33. The company has a current ratio of 2.51, a quick ratio of 1.95 and a debt-to-equity ratio of 1.79. The company has a market cap of $6.72 billion, a PE ratio of 10.26, a price-to-earnings-growth ratio of 1.40 and a beta of 1.04.

Allison Transmission (NYSE:ALSN) last issued its quarterly earnings results on Thursday, April 25th. The auto parts company reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.89 by $0.01. The company had revenue of $789.00 million for the quarter, compared to the consensus estimate of $772.37 million. Allison Transmission had a net margin of 21.80% and a return on equity of 55.83%. Allison Transmission’s quarterly revenue was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.85 EPS. On average, sell-side analysts forecast that Allison Transmission will post 7.56 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on ALSN. JPMorgan Chase & Co. raised their price objective on shares of Allison Transmission from $70.00 to $78.00 and gave the stock a “neutral” rating in a research note on Monday, April 15th. StockNews.com cut shares of Allison Transmission from a “strong-buy” rating to a “buy” rating in a research note on Friday, April 26th. Robert W. Baird upped their price objective on shares of Allison Transmission from $84.00 to $87.00 and gave the stock a “neutral” rating in a research report on Friday, April 26th. The Goldman Sachs Group lifted their target price on shares of Allison Transmission from $55.00 to $63.00 and gave the company a “sell” rating in a research report on Tuesday, April 16th. Finally, Oppenheimer upped their price target on shares of Allison Transmission from $67.00 to $90.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 26th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and two have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $71.71.

Insider Activity at Allison Transmission

In related news, VP Ryan A. Milburn sold 2,598 shares of the company’s stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $75.40, for a total transaction of $195,889.20. Following the completion of the sale, the vice president now owns 14,456 shares of the company’s stock, valued at approximately $1,089,982.40. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other news, VP Ryan A. Milburn sold 2,598 shares of the stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $75.40, for a total value of $195,889.20. Following the completion of the sale, the vice president now owns 14,456 shares of the company’s stock, valued at approximately $1,089,982.40. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO David S. Graziosi sold 76,318 shares of Allison Transmission stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $70.57, for a total transaction of $5,385,761.26. Following the sale, the chief executive officer now directly owns 125,479 shares in the company, valued at approximately $8,855,053.03. The disclosure for this sale can be found here. In the last quarter, insiders sold 87,843 shares of company stock valued at $6,244,562. Corporate insiders own 0.93% of the company’s stock.

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.