Allison Transmission Holdings, Inc. (ALSN - Free Report) 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 (VLVLY - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and PACCAR Inc. (PCAR - Free Report) . 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.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Allison Transmission Holdings, Inc. (ALSN - Free Report) 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 (VLVLY - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and PACCAR Inc. (PCAR - Free Report) . 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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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