Diversified Management Inc. Reduces Stake in Allegion PLC $ALLE

Key Points

• Diversified Management Inc. cut its Allegion stake by 87.5% in the second quarter, selling 14,076 shares and retaining 2,015 shares valued at approximately $283,000. Institutional investors still own 92.21% of the company.
• Analyst sentiment remains mixed but leans toward “Hold”, with an average price target of $164.75. Ratings included one Strong Buy, two Buys and eight Holds.
• Allegion exceeded quarterly expectations, reporting $2.40 in EPS and $1.15 billion in revenue, while revenue rose 12.7% year over year. The company also authorized a $500 million share repurchase plan.

Diversified Management Inc. lessened its position in shares of Allegion PLC (NYSE:ALLE - Free Report) by 87.5% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 2,015 shares of the scientific and technical instruments company's stock after selling 14,076 shares during the quarter. Diversified Management Inc.'s holdings in Allegion were worth $283,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of ALLE. Boston Partners grew its stake in shares of Allegion by 1.0% during the 3rd quarter. Boston Partners now owns 4,746,454 shares of the scientific and technical instruments company's stock valued at $842,026,000 after purchasing an additional 48,199 shares during the period. State Street Corp boosted its holdings in shares of Allegion by 6.6% in the third quarter. State Street Corp now owns 4,232,208 shares of the scientific and technical instruments company's stock worth $750,584,000 after buying an additional 260,973 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Allegion by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 2,693,831 shares of the scientific and technical instruments company's stock worth $427,521,000 after buying an additional 13,880 shares during the last quarter. Invesco Ltd. grew its position in Allegion by 12.7% during the fourth quarter. Invesco Ltd. now owns 1,402,682 shares of the scientific and technical instruments company's stock valued at $223,335,000 after buying an additional 157,724 shares during the period. Finally, Northern Trust Corp increased its holdings in Allegion by 4.5% during the third quarter. Northern Trust Corp now owns 1,210,063 shares of the scientific and technical instruments company's stock valued at $214,605,000 after buying an additional 52,612 shares during the last quarter. Institutional investors own 92.21% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Bank of America decreased their price target on shares of Allegion from $185.00 to $157.00 and set a "neutral" rating on the stock in a research report on Monday, April 20th. Barclays decreased their target price on Allegion from $165.00 to $161.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 29th. JPMorgan Chase & Co. lifted their target price on Allegion from $150.00 to $170.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. Longbow Research raised Allegion from a "neutral" rating to a "buy" rating and set a $165.00 price target for the company in a report on Thursday, June 11th. Finally, Robert W. Baird set a $170.00 price objective on Allegion in a research note on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $164.75.

Insider Transactions at Allegion

In other news, CFO Michael J. Wagnes sold 3,184 shares of the stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $150.98, for a total transaction of $480,720.32. Following the completion of the transaction, the chief financial officer directly owned 31,299 shares in the company, valued at approximately $4,725,523.02. This represents a 9.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Vincent Wenos sold 1,000 shares of the firm's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $168.25, for a total transaction of $168,250.00. Following the completion of the transaction, the senior vice president directly owned 12,096 shares of the company's stock, valued at approximately $2,035,152. This trade represents a 7.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 11,288 shares of company stock valued at $1,764,593 over the last 90 days. Insiders own 0.64% of the company's stock.

Allegion Trading Down 1.4%

Shares of Allegion stock opened at $166.06 on Thursday. Allegion PLC has a twelve month low of $125.00 and a twelve month high of $183.11. The company has a quick ratio of 1.23, a current ratio of 1.93 and a debt-to-equity ratio of 0.96. The business has a 50-day moving average price of $143.50 and a 200-day moving average price of $146.74. The firm has a market cap of $14.12 billion, a price-to-earnings ratio of 21.79, a PEG ratio of 3.42 and a beta of 0.84.

Allegion (NYSE:ALLE - Get Free Report) last posted its earnings results on Thursday, July 23rd. The scientific and technical instruments company reported $2.40 EPS for the quarter, topping analysts' consensus estimates of $2.22 by $0.18. Allegion had a return on equity of 35.41% and a net margin of 15.36%.The company had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the previous year, the business earned $2.04 earnings per share. The firm's revenue for the quarter was up 12.7% on a year-over-year basis. Allegion has set its FY 2026 guidance at 8.850-9.000 EPS. Equities research analysts anticipate that Allegion PLC will post 8.93 EPS for the current fiscal year.

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

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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