Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Allison (ALSN) Declares Share Repurchase Program & Dividend

Published 05/13/2019, 08:58 AM
Updated 07/09/2023, 06:31 AM

Allison Transmission Holdings, Inc. (NYSE:ALSN) made the announcement of repurchasing 4,977,043 common shares from Ashe Capital Management, LP for approximately $232 million, at a price of $46.70 per share. Upon the closing of the transaction, Ashe Capital owns around 4.1% of the company’s common shares.

Also, Allison’s board approved a new stock repurchase authorization program of up to additional $1 billion. This brings the total amount of authorization under this program to $3 billion. The company’s board also declared a cash dividend of 15 cents per share for second-quarter 2019. The dividend will be paid on May 31 to shareholders of record as of May 20. Notably, before this, it announced a dividend of 15 cents per share on Feb 21, 2019.

These share repurchase program and dividend announcements are likely to instill investor confidence. Payment of any future dividends will depend upon Allison’s financial strength, results of operations, cash and capital position, and other such factors.

Over the past three months, its shares have underperformed the industry it belongs to. Over this period, shares of the company declined 5.7% while the industry decreased 1.5%.

The company currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the auto space are AB Volvo (OTC:VLVLY) , Fox Factory Holding Corp. (NASDAQ:FOXF) and PACCAR Inc. (NASDAQ:PCAR) . While Volvo currently sports a Zacks Rank #1 (Strong Buy), Fox Factory and PACCAR carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Volvo has an expected long-term growth rate of 5%. Over the past three months, shares of the company have gained 3.8%.

Fox Factory has an expected long-term growth rate of 16.4%. Over the past three months, shares of the company have gained 26.9%.

PACCAR has an expected long-term growth rate of 6.4%. Share price of the company has increased 3.9% in the past three months.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>



PACCAR Inc. (PCAR): Free Stock Analysis Report

Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report

Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report

AB Volvo (VLVLY): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.