Lucid files for 1-for-10 reverse stock split requiring shareholder approval
John Coll, Senior Vice President of Global MSS at Allison Transmission Holdings Inc (NYSE:ALSN), a $7.7 billion market cap company currently trading at an attractive P/E ratio of 10.9, has recently sold 1,788 shares of the company’s common stock. According to InvestingPro analysis, ALSN is currently trading below its Fair Value. The shares were sold at an average price of $95.33 each, totaling approximately $170,450. Following this transaction, Coll now directly owns 15,388 shares of Allison Transmission. Additionally, he holds 8,906 shares indirectly through the John Coll Trust. The sale was executed under a Rule 10b5-1 trading plan that Coll adopted on November 26, 2024. InvestingPro analysis reveals the company maintains strong financial health with a "GREAT" overall score, and has consistently raised its dividend for 5 consecutive years. Get access to 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Allison Transmission Holdings Inc. reported impressive fourth-quarter results, with adjusted earnings per share reaching $2.01, surpassing analyst estimates of $1.89. The company’s revenue rose 2.7% year-over-year to $796 million, exceeding expectations of $777.81 million. Despite these strong results, Allison Transmission provided guidance for 2025 that fell short of Wall Street’s projections, forecasting full-year revenue between $3.2 billion and $3.3 billion against a consensus estimate of $3.22 billion. Additionally, the Board of Directors approved a quarterly dividend increase from $0.25 to $0.27 per share and authorized an additional $1 billion for stock repurchases, bringing the total authorization to $5 billion.
Meanwhile, Citi analyst Kyle Menges adjusted the price target for Allison Transmission to $115 from $120, maintaining a Neutral rating due to concerns over on-highway and parts & services volumes and margins. Menges noted potential downside risks related to North American on-highway volumes and margins, particularly with the potential imposition of U.S. tariffs on aluminum and steel. Despite these challenges, Allison Transmission’s North America On-Highway segment saw a 10% year-over-year increase in net sales to $419 million, while the Defense segment rose 8% to $68 million. The company also continued its practice of returning capital to shareholders by repurchasing over $250 million of common stock in 2024.
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