Allison Transmission Holdings (ALSN) has a market cap of $5.8 billion. It fell 1.0% to close at $34.66 per share on December 9, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.2%, 15.5%, and 36.9%, respectively, on the same day.
ALSN is trading 6.2% above its 20-day moving average, 15.4% above its 50-day moving average, and 23.9% above its 200-day moving average.
Related ETF and peers
The Guggenheim Mid-Cap Core ETF (CZA) invests 0.59% of its holdings in Allison Transmission. The YTD price movement of CZA was 16.4% on December 9.
The market caps of Allison Transmission’s competitors are as follows:
On December 9, 2016, Piper Jaffray downgraded Allison Transmission Holdings to “underweight” from “neutral.” It raised the stock’s price target to $30 from $28 per share.
JPMorgan upgraded Allison Transmission’s rating to “overweight” from “neutral” and set the stock’s price target at $38 per share.
Performance of Allison Transmission in 3Q16
Allison Transmission reported 3Q16 net sales of $434.3 million, a fall of 11.9% compared to $493.0 million in 3Q15. The company’s gross profit margin fell 80 basis points, and its operating margin rose 120 basis points in 3Q16 compared to 3Q15.
Its net income fell to $44.6 million in 3Q16 compared to $46.5 million in 3Q15. It reported EPS (earnings per share) of $0.27 in both 3Q16 and 3Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $150.5 million in 3Q16, a fall of 13.6% compared to 3Q15.
ALSN’s cash and cash equivalents fell 34.5%, and its inventories rose 10.2% in 3Q16 compared to 4Q15. It reported adjusted free cash flow of $115.5 million in 3Q16, a fall of 21.8% compared to 3Q15.
Allison Transmission has made the following projections for 2016:
- net sales to fall 8.5%–9.5%
- adjusted EBITDA margin of 34.0%–35.0%
- adjusted free cash flow of $435.0 million–$455.0 million
- capital expenditure of $70.0 million–$75.0 million
- cash income tax of $10.0 million–$15.0 million
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