In a recent transaction, John Coll, Senior Vice President of Global MSS at Allison Transmission Holdings Inc (NYSE:ALSN), sold shares of the company's stock. The transaction, which took place on September 30, 2024, involved the sale of 2,000 shares at a price of $95.8 per share, resulting in a total value of $191,600.
The sale was conducted in accordance with a Rule 10b5-1 trading plan, which had been adopted by Coll on November 30, 2023. Rule 10b5-1 plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading.
Following the transaction, Coll's direct ownership in Allison Transmission Holdings Inc stands at 10,420 shares. Additionally, it was noted that Coll has an indirect ownership of 8,906 shares through the John Coll Living Trust, which was established on May 2, 2005.
The sale reflects a change in Coll's position with the company but does not necessarily indicate a shift in the company's prospects or performance. Investors often monitor insider transactions as they can provide insights into the confidence levels that executives have in their company's future.
Allison Transmission Holdings Inc, headquartered in Indianapolis, Indiana, is a prominent player in the design and manufacture of vehicle propulsion solutions, including conventional, electric hybrid, and fully electric propulsion systems. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ALSN.
In other recent news, Allison Transmission has announced a series of significant developments. The company reported a record-breaking revenue of $816 million in the second quarter of 2024, with a net income of $187 million and a gross profit of $394 million. Following these strong results, Baird increased its price target for Allison Transmission from $87 to $90, maintaining a neutral rating.
Allison Transmission also declared a quarterly cash dividend of $0.25 per share for the third quarter of 2024. The company anticipates its 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 partnership news, Allison Transmission has formed a strategic partnership with LiuGong, a global construction equipment manufacturer, to address the needs of the Indonesian mining industry. The company has also completed a successful trial with a Hyundai (OTC:HYMTF) Xcient hydrogen fuel cell truck equipped with an Allison 4000 Series™ fully automatic transmission, marking a milestone in sustainable transportation. These are among the recent developments at Allison Transmission.
InvestingPro Insights
To provide additional context to John Coll's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for Allison Transmission Holdings Inc (NYSE:ALSN).
As of the latest data, Allison Transmission boasts a market capitalization of $8.45 billion, reflecting its significant presence in the vehicle propulsion solutions market. The company's P/E ratio stands at 12.53, suggesting that its stock may be reasonably valued relative to its earnings.
One of the InvestingPro Tips highlights that Allison Transmission has maintained dividend payments for 13 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend history could be particularly appealing to income-focused investors.
Another relevant InvestingPro Tip indicates that the company operates with a moderate level of debt. This financial prudence may provide Allison Transmission with flexibility in its operations and future growth initiatives, which could be reassuring for investors in light of the insider sale.
The company's financial health is further underscored by its impressive gross profit margins, as noted in the InvestingPro Tips. In fact, for the last twelve months as of Q2 2024, Allison Transmission reported a robust gross profit margin of 48.17%, showcasing its ability to maintain profitability in a competitive industry.
It's worth noting that InvestingPro offers 13 additional tips for Allison Transmission, providing a more comprehensive analysis for investors seeking deeper insights into the company's financial position and market performance.
These InvestingPro insights offer a broader perspective on Allison Transmission's financial health and market position, which may help investors contextualize the recent insider transaction within the company's overall performance and outlook.
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