Allison Transmission Holdings Inc. (NYSE:ALSN) has reached an all-time high, with its stock price soaring to $92.83. This milestone reflects a significant surge in the company's market value, marking a remarkable 1-year change of 56.07%. Investors have shown increased confidence in Allison Transmission, a leading manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles, as the company continues to innovate and expand its market presence. The all-time high represents a culmination of sustained growth over the past year, signaling strong performance and potential for continued success in the industry.
In other recent news, Allison Transmission's robust earnings and revenue results have been at the forefront. The company reported a record-breaking revenue of $816 million in the second quarter of 2024, with a net income of $187 million. Allison Transmission projects 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.
In terms of strategic partnerships, Allison Transmission has formed a significant alliance with LiuGong, aiming to cater to the Indonesian mining industry. The partnership was formalized with the unveiling of LiuGong's 70-ton DW105A Wide Body Dump Truck equipped with Allison's transmission. Additionally, a Hyundai (OTC:HYMTF) Xcient hydrogen fuel cell truck equipped with an Allison transmission successfully completed 30,000 kilometers of deliveries for GLS Germany, emphasizing the company's commitment to diverse propulsion solutions.
Following these developments, Baird raised its price target for Allison Transmission from $87 to $90, maintaining a neutral rating. Despite the optimistic near-term outlook, Baird expressed a cautious approach towards Allison Transmission's long-term prospects, considering the cyclical nature of the industry. These are the recent updates surrounding Allison Transmission.
InvestingPro Insights
Allison Transmission Holdings Inc.'s remarkable journey to an all-time high is further accentuated by its robust financial health and positive market indicators. With a market capitalization of $8.08 billion and a forward-looking P/E ratio of 12, the company demonstrates a balance of value and growth potential. Investors might find Allison's gross profit margin particularly impressive, standing at 48.17% over the last twelve months as of Q2 2024, reflecting efficient operations and a strong competitive position in its industry.
In addition, Allison has shown a commitment to returning value to shareholders, as evidenced by its track record of raising its dividend for 4 consecutive years, and maintaining dividend payments for 13 consecutive years. The dividend yield currently stands at 1.09%, with a dividend growth of 8.7% in the same period, rewarding long-term investors. The company's stock has also been trading near its 52-week high, at 99.56% of the peak, which may intrigue investors looking for stocks with momentum.
For those seeking more detailed analysis and additional insights, there are over 14 InvestingPro Tips available, including perspectives on earnings revisions, debt levels, and long-term returns. These tips can be accessed through InvestingPro's platform, providing a more comprehensive understanding of Allison Transmission's investment profile. Visit https://www.investing.com/pro/ALSN for an in-depth look at these valuable tips.
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