Chief Operating Officer Of Allison Transmission Purchased $265K In Stock

On August 25, Frederick Bohley, Chief Operating Officer at Allison Transmission (NYSE:ALSN) executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: Bohley's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 3,000 shares of Allison Transmission. The total transaction value is $265,499.

Monitoring the market, Allison Transmission's shares up by 0.05% at $88.4 during Tuesday's morning.

About Allison Transmission

Allison Transmission is the largest manufacturer of fully automatic transmissions for commercial vehicles. The company's automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business has about 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motor homes). Allison also produces electric hybrid propulsion systems and is developing e-powertrains.

Allison Transmission: Delving into Financials

Negative Revenue Trend: Examining Allison Transmission's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -0.25% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 49.39%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.32, Allison Transmission showcases strong earnings per share.

Debt Management: Allison Transmission's debt-to-equity ratio stands notably higher than the industry average, reaching 1.37. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 10.09 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.4 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 7.91 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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The Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Allison Transmission's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.