Allison Transmission Holdings Inc. [NYSE:ALSN] shares are showing an active tape with a current price of $39.79 on Wednesday.
Allison Transmission Holdings Inc. is in the Consumer Cyclical sector under the Auto Parts industry. This week, we are watching the stock hit price per sales of 1.94 with an earning per share of 3.52.
For the year, the stock is trading -17.65% and the five-day change stands at 13.23%. As a point of reference, the S&P 500 is trading 1.71% YTD.
The Price is right
Holding a Market Cap of $4.47 billion, Allison Transmission Holdings Inc. has seen a trading range over the last year of $26.15-$49.73.
For the last five days, ALSN is up from its last closing price. The average shares trading hands each day is 1.11M.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for ALSN. When we apply the Elder Force Index to Allison Transmission Holdings Inc., we are seeing an Elder Force Indicator number of 5431054.37.
The recent performance of the stock is another area that can tell traders how to proceed. ALSN is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 9.81.
In the last quarter, ALSN made a profit of 165.0 million. Allison Transmission Holdings Inc. also saw quarter revenue growth year over year of -0.55%.
Looking at popular technical indicators, the company’s 5-day moving average is 36.46 compared to the 50-day moving average of 2.85%. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. ALSN currently holds a 9-day RSI of 81.51%, while 100-day RSI stands at 51.27%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. ALSN’s 9-day MACD is 1.90 and the company’s 100-day MACD stands at 0.96.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.83% by insiders and 103.50% by institutions. Regarding institutional holdings, FMR, LLC owns 15.00%, while the second top holder, Vanguard Group, Inc. (The), currently owns 9.99%.
Over the last six months, insiders have bought 2,500 with the most recent transaction from Bohley G Frederick, SVP, CFO & Treasurer, with a purchase at price 38.25 per share.
Overall, the recommended rating for ALSN is Moderate Buy. Currently, the company has 9 analysts watching the stock, and the average quarterly earnings estimate is 0.56. Quarterly revenue estimates are averaging 470.95M with the high estimate reaching 557.72M and the low at 433.8M.
To review, the current 1-year target estimate is sitting at 44.90, while the current price 39.79. Based on this, we expect the stock to rise considering the aforementioned fundamentals.