Allison Transmission Holdings Inc's (NYSE:ALSN) Senior Vice President of Global MSS, John Coll, has recently sold a portion of his company stock, according to the latest filings with the Securities and Exchange Commission. On June 28, Coll sold 2,000 shares of common stock at a price of $75.06 per share, totaling $150,120.
The transaction was executed under a prearranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. This plan had been adopted by Coll on November 30, 2023.
Following this transaction, Coll's direct holdings in the company stock amount to 14,420 shares. Additionally, it's noted that he has an indirect ownership of 8,906 shares through the John Coll Living Trust, which dates back to May 2, 2005.
Investors often keep a close watch on insider transactions as they can provide insights into an insider's perspective on the value of the company stock. The sale by a high-ranking executive like Coll may be of particular interest to the market.
Allison Transmission Holdings Inc., headquartered in Indianapolis, Indiana, is known for its industry-leading position in the design and manufacture of vehicle propulsion solutions, including commercial-duty automatic transmissions and hybrid-propulsion systems.
The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ALSN. As of the last report, Allison Transmission's stock continues to be actively traded, with market participants considering the implications of insider transactions on their investment decisions.
In other recent news, Allison Transmission posted record-breaking net sales of $789 million in the first quarter of 2024, a 6% year-over-year increase. Despite a slight dip in net income, the company reaffirmed its full-year guidance, projecting net sales to be between $3.50 billion and $3.150 billion. Citi analysts, however, have expressed concern about Allison Transmission's ability to maintain its market share and profitability due to the increasing adoption of zero-emission vehicles (ZEVs).
In response to the industry shift, Allison Transmission has been investing in ZEV solutions, such as electric axle technology. Despite these efforts, Citi analysts suggest the company may face challenges in preserving its high market share.
In other developments, G. Frederick Bohley III has been promoted to the position of Chief Operating Officer within Allison Transmission. Lastly, Allison Transmission's venture capital arm, Allison Ventures, has invested $10 million in venture capital firm EnerTech Capital, a move expected to boost Allison's innovation strategy and market positioning in the automotive technology space.
InvestingPro Insights
Amid recent insider trading activity, Allison Transmission Holdings Inc. (NYSE:ALSN) remains a company with robust financial metrics and strategic corporate actions that may interest investors. A key highlight from InvestingPro is the company's perfect Piotroski Score of 9, suggesting strong financial health across multiple accounting-based measures. Additionally, management's aggressive share buyback strategy signals confidence in the company's valuation and future prospects.
From a data standpoint, Allison Transmission's market capitalization stands at a solid $6.57 billion, with an attractive price-to-earnings (P/E) ratio of 9.5 for the last twelve months as of Q1 2024, which is low relative to near-term earnings growth. The company's commitment to shareholder returns is evident, having raised its dividend for 4 consecutive years and maintained dividend payments for 13 consecutive years. Furthermore, the gross profit margin is impressive at 48.26%, reflecting operational efficiency and a strong market position.
Investors interested in a deeper analysis of Allison Transmission can find additional InvestingPro Tips, such as insights into the company's earnings multiples and liquidity position, on the dedicated InvestingPro page for ALSN. Moreover, for those considering a subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are currently 12 additional InvestingPro Tips available that could provide more nuanced investment perspectives.
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