Allison Transmission Holdings Inc. [NYSE: ALSN] traded at a high on 11/19/20, posting a 0.85 gain after which it closed the day’ session at $40.39. The company report on November 19, 2020 that Allison Transmission Closes Offering of $1 Billion Aggregate Principal Amount of 3.750% Senior Notes Due 2031.
Allison Transmission Holdings, Inc. (NYSE: ALSN) (“Allison” or the “Company”) today announced that its wholly owned subsidiary, Allison Transmission, Inc. (the “Issuer”), completed its previously announced offering of $1 billion in aggregate principal amount of 3.750% Senior Notes due 2031 (the “Notes”) in a private placement (the “Offering”) exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The Issuer used the net proceeds from the offering, together with cash on hand, to redeem $1 billion aggregate principal amount of its outstanding 5.000% Senior Notes due 2024 (the “2024 Notes”) and to pay related fees and expenses.
“The successful closing of this offering supports our long-standing commitment to prudent balance sheet management and our opportunistic approach to the capital markets with a focus on a low-cost, flexible and pre-payable debt structure with long-date maturities,” said Fred Bohley, Senior Vice President, Chief Financial Officer and Treasurer at Allison. “As a result of this offering, we anticipate an annual savings of approximately $12.5 million in interest expense, with the earliest maturity on our long-term debt due in 2026.”.
The results of the trading session contributed to over 3118194 shares changing hands. Over the past one week, the price volatility of Allison Transmission Holdings Inc. stands at 2.10% while the volatility over the past one month is 3.50%.
The market cap for ALSN stock reached $4.48 billion, with 113.00 million shares outstanding and 111.72 million shares in the current float. Compared to the average trading volume of 1.26M shares, ALSN reached a trading volume of 3118194 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Allison Transmission Holdings Inc. [ALSN]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ALSN shares is $44.70 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ALSN stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Robert W. Baird have made an estimate for Allison Transmission Holdings Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 20, 2020. While these analysts kept the previous recommendation, Goldman raised their target price from $40 to $44. The new note on the price target was released on April 20, 2020, representing the official price target for Allison Transmission Holdings Inc. stock. Previously, the target price had yet another drop from $42 to $38, while Citigroup kept a Neutral rating on ALSN stock. On April 14, 2020, analysts decreased their price target for ALSN shares from 50 to 45.
The Average True Range (ATR) for Allison Transmission Holdings Inc. is set at 1.46, with the Price to Sales ratio for ALSN stock in the period of the last 12 months amounting to 2.07. The Price to Book ratio for the last quarter was 6.57, with the Price to Cash per share for the same quarter was set at 3.91. Price to Free Cash Flow for ALSN in the course of the last twelve months was 8.10 with Quick ratio for the last quarter at 1.90.
How has ALSN stock performed recently?
Allison Transmission Holdings Inc. [ALSN] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.53. With this latest performance, ALSN shares gained by 6.04% in over the last four-week period, additionally plugging by 13.11% over the last 6 months – not to mention a drop of -11.11% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ALSN stock in for the last two-week period is set at 60.39, with the RSI for the last a single of trading hit 60.35, and the three-weeks RSI is set at 57.14 for Allison Transmission Holdings Inc. [ALSN]. The present Moving Average for the last 50 days of trading for this stock 37.38, while it was recorded at 40.32 for the last single week of trading, and 36.86 for the last 200 days.
Allison Transmission Holdings Inc. [ALSN]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Allison Transmission Holdings Inc. [ALSN] shares currently have an operating margin of +33.14 and a Gross Margin at +48.48. Allison Transmission Holdings Inc.’s Net Margin is presently recorded at +22.39.
Return on Total Capital for ALSN is now 27.49, given the latest momentum, and Return on Invested Capital for the company is 18.60. Return on Equity for this stock inclined to 83.89, with Return on Assets sitting at 13.91. When it comes to the capital structure of this company, Allison Transmission Holdings Inc. [ALSN] has a Total Debt to Total Equity ratio set at 325.35. Additionally, ALSN Total Debt to Total Capital is recorded at 76.49, with Total Debt to Total Assets ending up at 57.10. Long-Term Debt to Equity for the company is recorded at 323.94, with the Long-Term Debt to Total Capital now at 76.16.
Reflecting on the efficiency of the workforce at the company, Allison Transmission Holdings Inc. [ALSN] managed to generate an average of $163,243 per employee. Receivables Turnover for the company is 9.85 with a Total Asset Turnover recorded at a value of 0.62.Allison Transmission Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 2.50.
Earnings analysis for Allison Transmission Holdings Inc. [ALSN]
With the latest financial reports released by the company, Allison Transmission Holdings Inc. posted 0.9/share EPS, while the average EPS was predicted by analysts to be reported at 0.73/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 23.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ALSN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Allison Transmission Holdings Inc. go to 5.34%.
Insider trade positions for Allison Transmission Holdings Inc. [ALSN]
There are presently around $4,550 million, in the hands of institutional investors. The top three institutional holders of ALSN stocks are: FMR LLC with ownership of 15,444,242, which is approximately -9.024% of the company’s market cap and around 0.85% of the total institutional ownership; VANGUARD GROUP INC, holding 10,436,690 shares of the stock with an approximate value of $421.54 million in ALSN stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $279.84 million in ALSN stock with ownership of nearly 12.33% of the company’s market capitalization.
Positions in Allison Transmission Holdings Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 139 institutional holders increased their position in Allison Transmission Holdings Inc. [NYSE:ALSN] by around 11,078,766 shares. Additionally, 159 investors decreased positions by around 11,446,332 shares, while 40 investors held positions by with 90,125,853 shares. The mentioned changes placed institutional holdings at 112,650,951 shares, according to the latest SEC report filing. ALSN stock had 36 new institutional investments in for a total of 3,052,214 shares, while 38 institutional investors sold positions of 1,140,362 shares during the same period.