ALSN stock: buy or sell?

ALSN stock price: $41.88 -3.15% At close on February 26th, 2020

Updated on:
February 26th, 2020

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Allison Transmission shares eased -3.15% to $41.88 today. With Wednesday it's been 3 sliding days in a row, loosing $-2.67 (-6.06%).

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.

Should I buy ALSN stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Allison Transmission stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Allison Transmission stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't find any rating for ALSN stock for the last 30 days.

ALSN stock analysis

Daily outlook

Shares of Allison Transmission eased a horrible -3.15% and closed at $41.88.

Allison Transmission shares eased -3.15% to $41.88 today. Since SMA100d and SMA200d crossed up on December, ALSN price slid a -12.86%.

ALSN stock chart (daily)

Weekly outlook

Allison Transmission plunged a dreadful -5.99% this week.

Allison Transmission stock dropped through the support what triggered further losses. Price is looking for lower supports, and best candidates are 41.41. Since late January, when ALSN stock price broke down the 40-weeks moving avarage line, it slid $-4.56 per share (-9.82%). Stocks under the 40w moving average line are usually not recommended for average traders. Since late November 2019 when SMA20w and SMA40w crossed up, ALSN price slipped $-5.37 per share (-11.37%).

ALSN stock chart (weekly)

ALSN stock price history

ALSN IPO was on March 15th, 2012 at $20.22 per share1. Since then, ALSN stock surged a 107.10%, with an average of 15.30% per year. If you had invested $1,000 in ALSN stock in 2012, it would worth $1,071.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ALSN stock historical price chart

ALSN stock reached 52-week highs at $51.98, and all-time highs 2018-10-04 with a price of 52.89.

ALSN stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' ALSN stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not detected any price target for Allison Transmission stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Allison Transmission presented its financial report, posting an impressive climb for the Earnings per Share (EPS). Analyst were expecting $0.95 per share, but Allison Transmission posted $1.14.
ALSN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.62n/a
2017-Q32017-10-300.50.7550.0%
2017-Q42018-02-140.590.8137.3%
2018-Q12018-04-300.791.0836.7%
2018-Q22018-07-3011.2929.0%
2018-Q32018-10-291.091.2716.5%
2018-Q42019-02-250.951.1420.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Allison Transmission annual turnover skyrocketed an amazing 19.94% to $2,713.00 million dollars from $2,262.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) grew a 1.27% to 23.55%.

ALSN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,930 M-$165 M8.6%-
2014$2,127 M10.23%$229 M10.7%38.21%
2015$1,986 M-6.66%$182 M9.2%-20.25%
2016$1,840 M-7.33%$215 M11.7%17.88%
2017$2,262 M22.92%$504 M22.3%134.53%
2018$2,713 M19.94%$639 M23.6%26.79%

Quarterly financial results

Allison Transmission posted $647.00 M in revenues for 2018-Q4, a -6.50% less compared to previous quarter. Reported quarter income marked $147.00 million with a profit margin of 22.72%. Profit margin slightly fell a -1.41% compared to previous quarter when profit margin was 24.13%. When comparing sales to same quarter last year, Allison Transmission sales marked a wonderful growth and boosted a 10.03%. Looking back to recent quarterly results, Allison Transmission posted 2 negative quarters in a row.
ALSN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$580 M-$95 M16.4%-
2017-Q3$595 M2.59%$111 M18.7%16.84%
2017-Q4$588 M-1.18%$215 M36.6%93.69%
2018-Q1$663 M12.76%$151 M22.8%-29.77%
2018-Q2$711 M7.24%$174 M24.5%15.23%
2018-Q3$692 M-2.67%$167 M24.1%-4.02%
2018-Q4$647 M-6.50%$147 M22.7%-11.98%
2019-Q1$675 M4.33%$167 M24.7%13.61%

Allison Transmission ownership

When you are planning to invest in shares of a stock, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Allison Transmission, 0.91% of all outstanding shares are owned by its staff.

Bearish positions for ALSN stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Allison Transmission:

ALSN
Market cap$5.0 B
Total shares119.2 M
Float shares118.0 M
  - Institutional holdings (%)98.0%
  - Insider holdings (%)0.9%
Shares in short selling0.0%

ALSN summary

Wednesday, February 26th, 2020
Open$43.70
Close$41.88
Day range$41.54 - $43.68
Previous close$43.24
Session gain-3.15%
Average true range$1.14
50d mov avg$46.73
100d mov avg$46.31
200d mov avg$45.47
Daily pattern
Weekly pattern lt06c

Allison Transmission performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We chose as the bechmarking frame for Allison Transmission stock.
Stock3m6m12m
ALSNAllison Transmiss...-13.47%-5.42%-13.56%

Allison Transmission competitors

Unfortunately, we could not find any public company that could be defined as Allison Transmission competitor. This doesn't mean Allison Transmission does not have any competitor in the market, it's just we could not detected it.