Allegion (NYSE:ALLE) Hits New 1-Year High - Should You Buy?

Key Points

• Allegion PLC's stock reached a new 52-week high, trading at $167.63, with brokerages raising their price targets; Goldman Sachs now targets $170.00 with a "buy" rating.
• The company reported a quarterly earnings per share of $2.04, exceeding expectations and showing a revenue increase of 5.8% year-over-year, totaling $1.02 billion.
• Insider selling activity included significant transactions by SVP Timothy P. Eckersley and SVP Tracy L. Kemp, reducing their holdings by 26.47% and 30.49%, respectively.

Shares of Allegion PLC (NYSE:ALLE - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as $167.63 and last traded at $167.14, with a volume of 74322 shares trading hands. The stock had previously closed at $166.43.

Wall Street Analyst Weigh In

Several brokerages have commented on ALLE. The Goldman Sachs Group raised their target price on shares of Allegion from $149.00 to $170.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. Robert W. Baird lifted their price target on Allegion from $150.00 to $175.00 and gave the company a "neutral" rating in a research note on Friday, July 25th. Mizuho lifted their price target on Allegion from $145.00 to $155.00 and gave the company a "neutral" rating in a research note on Friday, July 25th. JPMorgan Chase & Co. started coverage on Allegion in a research note on Tuesday, June 24th. They issued an "overweight" rating and a $170.00 price target on the stock. Finally, Morgan Stanley lifted their price target on Allegion from $139.00 to $151.00 and gave the company an "equal weight" rating in a research note on Friday, July 11th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $165.88.

Allegion Stock Up 0.9%

The firm has a market capitalization of $14.41 billion, a price-to-earnings ratio of 23.32, a P/E/G ratio of 3.52 and a beta of 1.05. The stock has a fifty day moving average of $150.01 and a two-hundred day moving average of $138.28. The company has a debt-to-equity ratio of 1.14, a current ratio of 2.30 and a quick ratio of 1.64.

Allegion (NYSE:ALLE - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The scientific and technical instruments company reported $2.04 earnings per share for the quarter, topping analysts' consensus estimates of $2.00 by $0.04. Allegion had a return on equity of 42.62% and a net margin of 16.15%. The firm had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $999.10 million. During the same period last year, the business posted $1.96 EPS. The business's revenue was up 5.8% compared to the same quarter last year. Sell-side analysts anticipate that Allegion PLC will post 7.77 earnings per share for the current year.

Insider Activity

In related news, SVP Timothy P. Eckersley sold 10,810 shares of the firm's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $164.76, for a total value of $1,781,055.60. Following the transaction, the senior vice president owned 30,023 shares of the company's stock, valued at approximately $4,946,589.48. This trade represents a 26.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Tracy L. Kemp sold 3,849 shares of the firm's stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $164.92, for a total transaction of $634,777.08. Following the completion of the transaction, the senior vice president directly owned 8,773 shares in the company, valued at approximately $1,446,843.16. The trade was a 30.49% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.23% of the company's stock.

Institutional Investors Weigh In On Allegion

Several large investors have recently modified their holdings of the stock. Wayfinding Financial LLC purchased a new position in shares of Allegion during the 1st quarter valued at $30,000. Sound Income Strategies LLC bought a new position in shares of Allegion during the second quarter valued at about $32,000. Colonial Trust Co SC raised its stake in shares of Allegion by 192.9% during the fourth quarter. Colonial Trust Co SC now owns 249 shares of the scientific and technical instruments company's stock valued at $33,000 after acquiring an additional 164 shares during the last quarter. Spire Wealth Management raised its stake in shares of Allegion by 78.0% during the second quarter. Spire Wealth Management now owns 235 shares of the scientific and technical instruments company's stock valued at $34,000 after acquiring an additional 103 shares during the last quarter. Finally, Garde Capital Inc. bought a new position in Allegion in the first quarter worth about $36,000. Hedge funds and other institutional investors own 92.21% of the company's stock.

Allegion Company Profile

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door controls and systems and exit devices; locks, locksets, portable locks, and key systems and services; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors, accessories, and other.

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