Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

How to buy Allison Transmission stock | $42.15

Own Allison Transmission stock in just a few minutes.

Fact checked

Allison Transmission Holdings, Inc is an auto parts business based in the US. Allison Transmission shares (ALSN) are listed on the NYSE and all prices are listed in US Dollars. Allison Transmission employs 3,700 staff and has a trailing 12-month revenue of around USD$2.2 billion.

How to buy shares in Allison Transmission

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Allison Transmission. Find the stock by name or ticker symbol: ALSN. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Allison Transmission reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$42.15, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Allison Transmission, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Allison Transmission. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Allison Transmission share price

Use our graph to track the performance of ALSN stocks over time.

Allison Transmission shares at a glance

Information last updated 2020-12-27.
Latest market closeUSD$42.15
52-week rangeUSD$25.7851 - USD$48.8236
50-day moving average USD$41.5273
200-day moving average USD$37.9237
Wall St. target priceUSD$45.3
PE ratio 14.4393
Dividend yield USD$0.68 (1.57%)
Earnings per share (TTM) USD$2.996

Buy Allison Transmission shares from these brokerages

Compare special offers, low fees and a wide range of types of investments among top trading platforms.
Name Product Stock trade fee Asset types Option trade fee Annual fee
Sofi Invest
$0
Stocks, ETFs, Cryptocurrency
N/A
0%
A free way to invest in stocks, ETFs and crypto.
Robinhood
$0
Stocks, Options, ETFs, Cryptocurrency
$0
0%
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Moomoo
$0 for US stocks
Stocks, Options, ETFs
$0
Trade stocks on the US, Hong Kong, Shanghai and Shenzhen markets.
TD Ameritrade
$0
or $25 broker-assisted
Stocks
$0 + $0.65/contract,
or $25 broker-assisted
TD Ameritrade features $0 commission for online stock, but watch out for high short-term ETF and broker-assisted trading fees.
loading

Compare up to 4 providers

The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Allison Transmission stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Allison Transmission price performance over time

Historical closes compared with the close of $42.15 from 2021-01-11

1 week (2021-01-11) 42.15
1 month (2020-12-18) -2.20%
3 months (2020-10-16) 0.96%
6 months (2020-07-17) 14.07%
1 year (2020-01-17) -12.93%
2 years (2019-01-18) -15.53%
3 years (2018-01-18) 44.35
5 years (2016-01-15) 80.51%

Is Allison Transmission under- or over-valued?

Valuing Allison Transmission stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Allison Transmission's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Allison Transmission's P/E ratio

Allison Transmission's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 14x. In other words, Allison Transmission shares trade at around 14x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Allison Transmission's PEG ratio

Allison Transmission's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 16.6584. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Allison Transmission's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Allison Transmission's EBITDA

Allison Transmission's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$748 million.

The EBITDA is a measure of a Allison Transmission's overall financial performance and is widely used to measure a its profitability.

Allison Transmission financials

Revenue TTM USD$2.2 billion
Operating margin TTM 27.37%
Gross profit TTM USD$1.4 billion
Return on assets TTM 8.3%
Return on equity TTM 46.47%
Profit margin 16%
Book value $6.615
Market capitalisation USD$4.9 billion

TTM: trailing 12 months

Shorting Allison Transmission shares

There are currently 2.9 million Allison Transmission shares held short by investors – that's known as Allison Transmission's "short interest". This figure is 41.2% up from 2.1 million last month.

There are a few different ways that this level of interest in shorting Allison Transmission shares can be evaluated.

Allison Transmission's "short interest ratio" (SIR)

Allison Transmission's "short interest ratio" (SIR) is the quantity of Allison Transmission shares currently shorted divided by the average quantity of Allison Transmission shares traded daily (recently around 1.1 million). Allison Transmission's SIR currently stands at 2.68. In other words for every 100,000 Allison Transmission shares traded daily on the market, roughly 2680 shares are currently held short.

However Allison Transmission's short interest can also be evaluated against the total number of Allison Transmission shares, or, against the total number of tradable Allison Transmission shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Allison Transmission's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Allison Transmission shares in existence, roughly 30 shares are currently held short) or 0.0337% of the tradable shares (for every 100,000 tradable Allison Transmission shares, roughly 34 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Allison Transmission.

Find out more about how you can short Allison Transmission stock.

Allison Transmission share dividends

19%

Dividend payout ratio: 19.45% of net profits

Recently Allison Transmission has paid out, on average, around 19.45% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.57% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Allison Transmission shareholders could enjoy a 1.57% return on their shares, in the form of dividend payments. In Allison Transmission's case, that would currently equate to about $0.68 per share.

While Allison Transmission's payout ratio might seem low, this can signify that Allison Transmission is investing more in its future growth.

Allison Transmission's most recent dividend payout was on 25 November 2020. The latest dividend was paid out to all shareholders who bought their shares by 13 November 2020 (the "ex-dividend date").

Allison Transmission share price volatility

Over the last 12 months, Allison Transmission's shares have ranged in value from as little as $25.7851 up to $48.8236. A popular way to gauge a stock's volatility is its "beta".

ALSN.US volatility(beta: 1.24)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Allison Transmission's is 1.242. This would suggest that Allison Transmission's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Allison Transmission overview

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.S. defense vehicles worldwide. It offers 12 transmission product lines for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company markets its transmissions under Allison Transmission brand name; and remanufactured transmissions under ReTran brand name. It also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company serves customers through an independent network of approximately 1,500 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site