Allegion (NYSE:ALLE) Shares Gap Down on Disappointing Earnings

Key Points

• Allegion shares gapped down after the quarter as EPS of $1.80 missed consensus by $0.47 and revenue was $1.03B versus $1.10B expected, driving the stock from a $148.40 close to a $136.00 open and down roughly 7.4%.
• The company issued FY2026 guidance of $8.70–$8.90 EPS, and several analysts cut target prices (e.g., Wells Fargo to $155, Barclays to $165), leaving MarketBeat's consensus rating at Hold with an average target of $168.88.

Allegion PLC (NYSE:ALLE - Get Free Report)'s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $148.40, but opened at $136.00. Allegion shares last traded at $137.7540, with a volume of 256,265 shares trading hands.

The scientific and technical instruments company reported $1.80 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.27 by ($0.47). Allegion had a return on equity of 38.06% and a net margin of 15.83%.The firm had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same period in the previous year, the company posted $1.86 earnings per share. The company'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.

Allegion Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Monday, June 15th. Allegion's dividend payout ratio is presently 29.57%.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ALLE. Wells Fargo & Company dropped their target price on shares of Allegion from $175.00 to $155.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 1st. Barclays dropped their target price on shares of Allegion from $176.00 to $165.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 1st. JPMorgan Chase & Co. dropped their target price on shares of Allegion from $190.00 to $180.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Evercore upgraded shares of Allegion to a "strong-buy" rating in a research note on Monday, April 13th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Allegion in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $168.88.

Insider Transactions at Allegion

In other Allegion news, Director Steven Mizell sold 1,000 shares of the business'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 transaction, the director directly owned 4,915 shares in the company, valued at $793,821.65. The trade was a 16.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Sue Main purchased 2,000 shares of the company's stock in a transaction that occurred on Wednesday, March 11th. The shares were acquired at an average price of $149.61 per share, for a total transaction of $299,220.00. Following the completion of the purchase, the director directly owned 2,000 shares in the company, valued at $299,220. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.23% of the stock is owned by insiders.

Institutional Trading of Allegion

A number of institutional investors have recently modified their holdings of ALLE. Forvis Mazars Wealth Advisors LLC purchased a new stake in Allegion in the 3rd quarter worth approximately $2,838,000. Fusion Capital LLC purchased a new stake in Allegion in the 3rd quarter worth approximately $4,406,000. Massachusetts Financial Services Co. MA lifted its stake in Allegion by 5.1% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 2,356,869 shares of the scientific and technical instruments company's stock worth $417,991,000 after purchasing an additional 113,821 shares in the last quarter. National Pension Service lifted its stake in Allegion by 449.4% in the 3rd quarter. National Pension Service now owns 7,785 shares of the scientific and technical instruments company's stock worth $1,381,000 after purchasing an additional 6,368 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Allegion by 3.8% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 171,903 shares of the scientific and technical instruments company's stock worth $30,487,000 after purchasing an additional 6,220 shares in the last quarter. 92.21% of the stock is currently owned by hedge funds and other institutional investors.

Allegion Stock Down 7.4%

The company has a debt-to-equity ratio of 0.96, a quick ratio of 1.16 and a current ratio of 1.84. The firm has a market capitalization of $11.81 billion, a PE ratio of 18.45, a PEG ratio of 2.74 and a beta of 1.02. The company's 50 day simple moving average is $148.75 and its 200-day simple moving average is $160.05.

About Allegion

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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