Boston Partners Trims Stake in Allegion PLC $ALLE

Key Points

• Boston Partners trimmed its stake in Allegion by 2.8% in the fourth quarter, selling 133,557 shares and ending with 4.61 million shares worth about $734.7 million.
• Insider selling and heavy institutional ownership were both notable: SVP Robert C. Martens sold 3,993 shares in May, while institutional investors still own about 92.21% of the stock.
• Analysts remain cautious overall, with a consensus rating of “Hold” and an average price target of $160.89, even as Allegion reported quarterly EPS below expectations and announced a $500 million share buyback and a quarterly dividend of $0.55 per share.

Boston Partners reduced its holdings in shares of Allegion PLC (NYSE:ALLE - Free Report) by 2.8% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 4,612,897 shares of the scientific and technical instruments company's stock after selling 133,557 shares during the period. Allegion comprises 0.8% of Boston Partners' portfolio, making the stock its 27th biggest position. Boston Partners owned about 5.36% of Allegion worth $734,689,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the stock. Titan Investment Solutions Ltd purchased a new stake in Allegion in the 4th quarter valued at about $5,466,000. Korea Investment CORP raised its position in Allegion by 8.4% during the fourth quarter. Korea Investment CORP now owns 52,933 shares of the scientific and technical instruments company's stock valued at $8,428,000 after acquiring an additional 4,100 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in shares of Allegion in the fourth quarter valued at approximately $4,798,000. Macquarie Group Ltd. increased its position in shares of Allegion by 15.9% during the fourth quarter. Macquarie Group Ltd. now owns 12,508 shares of the scientific and technical instruments company's stock worth $1,992,000 after purchasing an additional 1,718 shares in the last quarter. Finally, Summit Financial LLC acquired a new position in Allegion during the fourth quarter worth $248,000. 92.21% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, SVP Robert C. Martens sold 3,993 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $137.15, for a total value of $547,639.95. Following the completion of the sale, the senior vice president owned 8,570 shares in the company, valued at $1,175,375.50. This represents a 31.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.64% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

ALLE has been the subject of a number of research reports. 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 research note on Wednesday, April 1st. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $150.00 price objective (down from $170.00) on shares of Allegion in a research report on Friday, May 15th. Longbow Research raised shares of Allegion from a "neutral" rating to a "buy" rating and set a $165.00 price objective for the company in a research report on Thursday. Morgan Stanley decreased their price objective on shares of 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, Barclays decreased their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $160.89.

Allegion Stock Up 0.2%

ALLE stock opened at $133.95 on Friday. The firm's 50-day simple moving average is $136.11 and its 200 day simple moving average is $151.84. The company has a quick ratio of 1.19, a current ratio of 1.91 and a debt-to-equity ratio of 0.97. The stock has a market cap of $11.51 billion, a PE ratio of 18.30, a price-to-earnings-growth ratio of 2.78 and a beta of 0.86. Allegion PLC has a fifty-two week low of $125.00 and a fifty-two week high of $183.11.

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

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

Allegion Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 1.6%. The ex-dividend date is Monday, June 15th. Allegion's payout ratio is presently 30.05%.

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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