Allegion (NYSE:ALLE) Hits New 12-Month Low - Here's Why

Key Points

• Allegion hit a new 52-week low on Monday, trading as low as $125.55 before closing near $127.83, below its previous close of $131.14.
• Analysts remain cautious overall: several firms cut price targets or downgraded the stock, and MarketBeat shows an average rating of Hold with a consensus price target of $161.50.
• The company missed quarterly EPS estimates, but revenue matched forecasts and rose 9.7% year over year; Allegion also announced a quarterly dividend of $0.55 per share and a $500 million share repurchase program.

Allegion PLC (NYSE:ALLE - Get Free Report) reached a new 52-week low during trading on Monday . The stock traded as low as $125.55 and last traded at $127.8260, with a volume of 36775 shares traded. The stock had previously closed at $131.14.

Analyst Upgrades and Downgrades

Several research firms have commented on ALLE. Evercore upgraded shares of Allegion to a "strong-buy" rating in a research report on Monday, April 13th. JPMorgan Chase & Co. restated a "neutral" rating and issued a $150.00 target price (down from $170.00) on shares of Allegion in a research report on Friday. Barclays decreased their target price on shares of Allegion from $165.00 to $161.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 29th. Bank of America decreased their target price on shares of Allegion from $185.00 to $157.00 and set a "neutral" rating for the company in a research report on Monday, April 20th. Finally, Weiss Ratings lowered shares of Allegion from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $161.50.

Allegion Trading Up 2.7%

The firm has a market capitalization of $11.09 billion, a price-to-earnings ratio of 17.64, a price-to-earnings-growth ratio of 2.61 and a beta of 0.89. The firm's 50 day moving average is $142.38 and its 200 day moving average is $156.57. The company has a quick ratio of 1.19, a current ratio of 1.91 and a debt-to-equity ratio of 0.97.

Allegion (NYSE:ALLE - Get Free Report) last released its earnings results on Tuesday, April 28th. The scientific and technical instruments company reported $1.80 EPS for the quarter, missing the consensus estimate of $1.88 by ($0.08). Allegion had a net margin of 15.24% and a return on equity of 35.41%. The business had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.03 billion. During the same period in the prior year, the company earned $1.86 earnings per share. The firm's revenue for the quarter was up 9.7% on a year-over-year basis. Allegion has set its FY 2026 guidance at 8.700-8.900 EPS. Equities analysts forecast that Allegion PLC will post 8.73 earnings per share for the current year.

Allegion Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be paid a dividend of $0.55 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $2.20 annualized dividend and a yield of 1.7%. Allegion's dividend payout ratio is currently 30.05%.

Allegion declared that its Board of Directors has approved a stock repurchase program on Tuesday, April 28th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the scientific and technical instruments company to purchase up to 3.9% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Allegion news, Director Steven Mizell sold 1,000 shares of the firm's stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $161.51, for a total value of $161,510.00. Following the completion of the transaction, the director directly owned 4,915 shares in the company, valued at $793,821.65. This trade represents a 16.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, SVP Robert C. Martens sold 3,993 shares of the firm's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $137.15, for a total transaction of $547,639.95. Following the completion of the transaction, the senior vice president owned 8,570 shares of the company's stock, valued at approximately $1,175,375.50. The trade was a 31.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 5,393 shares of company stock worth $774,666 over the last ninety days. 0.64% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Oregon Public Employees Retirement Fund boosted its holdings in shares of Allegion by 0.6% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 9,817 shares of the scientific and technical instruments company's stock worth $1,563,000 after buying an additional 59 shares during the period. Diversify Advisory Services LLC boosted its holdings in shares of Allegion by 2.7% during the third quarter. Diversify Advisory Services LLC now owns 2,308 shares of the scientific and technical instruments company's stock worth $380,000 after purchasing an additional 60 shares during the period. D.A. Davidson & CO. lifted its position in Allegion by 4.1% in the 4th quarter. D.A. Davidson & CO. now owns 1,612 shares of the scientific and technical instruments company's stock worth $257,000 after buying an additional 63 shares in the last quarter. Banque de Luxembourg S.A. lifted its position in Allegion by 0.3% in the 4th quarter. Banque de Luxembourg S.A. now owns 22,294 shares of the scientific and technical instruments company's stock worth $3,550,000 after buying an additional 65 shares in the last quarter. Finally, Rovin Capital UT ADV lifted its position in Allegion by 1.6% in the 3rd quarter. Rovin Capital UT ADV now owns 4,207 shares of the scientific and technical instruments company's stock worth $746,000 after buying an additional 66 shares in the last quarter. 92.21% of the stock is currently owned by institutional investors and hedge funds.

Allegion Company Profile

Allegion plc NYSE: ALLE is a global provider of security products and solutions focused on ensuring the safety and security of people and property. The company was formed in December 2013 through a corporate spin-off from Ingersoll Rand and is head­quartered in Dublin, Ireland. Allegion's core mission is to deliver innovative mechanical and electronic access control systems for a wide range of end markets, including commercial buildings, residential properties, institutional facilities, and industrial sites.

The company's product portfolio spans mechanical locksets, door closers, exit devices, key systems and cylinders, as well as a growing suite of electronic and smart access control offerings.

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