Allegion (NYSE:ALLE) Upgraded by Longbow Research to Buy Rating

Key Points

• Longbow Research upgraded Allegion from “neutral” to “buy” and set a $165 price target, implying about 27% upside from the current share price.
• The latest analyst view remains mixed overall: MarketBeat shows a consensus rating of “Hold” with an average target price of $160.89, even after several recent target cuts from other firms.
• Allegion reported Q1 EPS of $1.80, missing estimates by $0.08, while revenue matched expectations at $1.03 billion; the company also authorized a $500 million share repurchase program.

Allegion (NYSE:ALLE - Get Free Report) was upgraded by investment analysts at Longbow Research from a "neutral" rating to a "buy" rating in a report released on Thursday, MarketBeat.com reports. The firm currently has a $165.00 price target on the scientific and technical instruments company's stock. Longbow Research's price objective indicates a potential upside of 27.24% from the company's current price.

A number of other equities analysts also recently weighed in on the stock. Robert W. Baird set a $165.00 price target on shares of Allegion in a research note on Wednesday, April 29th. Wells Fargo & Company dropped their price objective on Allegion from $175.00 to $155.00 and set an "equal weight" rating for the company in a report on Wednesday, April 1st. Bank of America cut their target price on Allegion from $185.00 to $157.00 and set a "neutral" rating on the stock in a research report on Monday, April 20th. Morgan Stanley lowered their price target on Allegion from $165.00 to $142.00 and set an "equal weight" rating for the company in a research report on Wednesday, June 3rd. Finally, JPMorgan Chase & Co. restated a "neutral" rating and set a $150.00 price target (down from $170.00) on shares of Allegion in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $160.89.

Allegion Stock Down 1.0%

Shares of NYSE:ALLE opened at $129.68 on Thursday. The company has a current ratio of 1.91, a quick ratio of 1.19 and a debt-to-equity ratio of 0.97. The firm has a market cap of $11.14 billion, a price-to-earnings ratio of 17.72, a PEG ratio of 2.72 and a beta of 0.86. The stock's 50-day moving average price is $136.54 and its two-hundred day moving average price is $152.17. Allegion has a 12-month low of $125.00 and a 12-month high of $183.11.

Allegion (NYSE:ALLE - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The scientific and technical instruments company reported $1.80 EPS for the quarter, missing analysts' consensus estimates of $1.88 by ($0.08). Allegion had a net margin of 15.24% and a return on equity of 35.41%. The company 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 EPS. The company's revenue was up 9.7% compared to the same quarter last year. Allegion has set its FY 2026 guidance at 8.700-8.900 EPS. On average, research analysts forecast that Allegion will post 8.73 EPS for the current year.

Allegion announced that its Board of Directors has authorized a share repurchase program on Tuesday, April 28th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the scientific and technical instruments company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Insider Transactions at Allegion

In other Allegion news, 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 value of $547,639.95. Following the transaction, the senior vice president directly owned 8,570 shares of the company's stock, valued at $1,175,375.50. This trade represents a 31.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.64% of the company's stock.

Institutional Investors Weigh In On Allegion

A number of large investors have recently modified their holdings of ALLE. Pinnacle Bancorp Inc. boosted its holdings in Allegion by 255.6% in the 4th quarter. Pinnacle Bancorp Inc. now owns 160 shares of the scientific and technical instruments company's stock worth $25,000 after acquiring an additional 115 shares during the period. Hantz Financial Services Inc. raised its stake in shares of Allegion by 120.9% during the third quarter. Hantz Financial Services Inc. now owns 148 shares of the scientific and technical instruments company's stock valued at $26,000 after purchasing an additional 81 shares during the period. CYBER HORNET ETFs LLC acquired a new position in shares of Allegion during the second quarter worth $33,000. Bard Associates Inc. acquired a new position in shares of Allegion during the fourth quarter worth $35,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in shares of Allegion in the third quarter valued at $36,000. Institutional investors and hedge funds own 92.21% of the company's stock.

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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