Allison Transmission Holdings Inc (NYSE:ALSN) executive John Coll, serving as the Senior Vice President of Global MSS, has recently sold a portion of his company shares. On August 29, 2024, Coll disposed of 2,000 shares of common stock at a price of $90.9812 each, resulting in a total transaction value of over $181,962.
The sale has adjusted Coll's direct ownership in the company to 12,420 shares. Additionally, it is noted that Coll has an indirect ownership through the John Coll Living Trust, which holds 8,906 shares of common stock. The nature of this indirect ownership indicates a personal trust arrangement.
Investors often keep an eye on insider transactions as they can provide insights into an executive's confidence in the company's future prospects. While the reasons behind Coll's sale are not disclosed in the filing, the transaction has been duly reported and the details are now publicly accessible.
For those following Allison Transmission's stock movements, this insider activity may be of interest as the company continues to operate in the motor vehicle parts and accessories sector. Allison Transmission Holdings Inc's shares are publicly traded on the New York Stock Exchange under the ticker symbol ALSN.
In other recent news, Allison Transmission reported a record-breaking revenue of $816 million in the second quarter of 2024, accompanied by a net income of $187 million and a gross profit of $394 million. The company also announced a quarterly cash dividend of $0.25 per share for the third quarter of 2024. Following these strong results, Baird upgraded its price target for Allison Transmission from $87 to $90 while maintaining a neutral rating.
Further developments include Allison Transmission's projection of net sales for the full year to be between $3,090 million and $3,170 million, with net income expected to fall between $650 million and $700 million. The company's performance was significantly bolstered by robust North American On-Highway sales, driven by notable Class 8 vocational vehicle demand.
In another development, GLS Germany completed 30,000 kilometers of deliveries using a Hyundai (OTC:HYMTF) Xcient hydrogen fuel cell truck equipped with an Allison 4000 Series™ fully automatic transmission. This trial marks a significant step towards environmentally friendly propulsion technologies. Allison Transmission's patented torque converter played a pivotal role in enhancing the truck's performance, leading to increased range and efficiency.
In the same vein, Baird expressed a cautious approach towards Allison Transmission's long-term prospects, considering the cyclical nature of the industry. The firm is keen to better understand the risks and rewards for the year 2025 before projecting further potential gains. These are the latest developments in recent news about Allison Transmission.
InvestingPro Insights
As investors analyze the recent insider selling by John Coll of Allison Transmission Holdings Inc (NYSE:ALSN), it's worth considering the company's financial health and market performance. Notably, Allison Transmission has been lauded for its ability to consistently reward shareholders, having increased its dividend for four consecutive years. This speaks to a level of financial stability and commitment to returning value to shareholders.
Moreover, the company's fundamentals paint a promising picture. Analysts have revised their earnings expectations upwards for the upcoming period, suggesting a positive outlook on the company's financial performance. In addition to this, Allison Transmission boasts impressive gross profit margins, which are indicative of strong operational efficiency and a solid competitive position within the motor vehicle parts and accessories sector.
Investors may also find comfort in the company's valuation metrics. Allison Transmission is trading at a low P/E ratio relative to near-term earnings growth, potentially offering an attractive entry point for value-oriented investors. This, combined with the company's history of maintaining dividend payments for 13 consecutive years and a strong return over the last three months, underscores the potential for Allison Transmission to be a profitable investment this year, as predicted by analysts.
For those interested in a deeper dive into Allison Transmission's performance and future prospects, there are additional InvestingPro Tips available. These include insights into the company's liquidity, debt levels, and long-term returns. In total, there are 12 additional InvestingPro Tips that can be explored by visiting https://www.investing.com/pro/ALSN.
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