GW&K Investment Management LLC Lowers Stock Position in Allegion PLC $ALLE

Key Points

• GW&K Investment Management cut its Allegion position by 4.5% in the fourth quarter, selling 10,428 shares and ending with 219,762 shares worth about $35 million.
• Analyst sentiment is mixed but cautious: Allegion has a consensus Hold rating and an average price target of $160.38, while several firms recently lowered targets or kept neutral/equal-weight views.
• The company reported Q1 earnings below expectations with EPS of $1.80 versus $1.88 expected, but it also announced a quarterly dividend of $0.55 per share and a new $500 million share buyback authorization.

GW&K Investment Management LLC reduced its stake in Allegion PLC (NYSE:ALLE - Free Report) by 4.5% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 219,762 shares of the scientific and technical instruments company's stock after selling 10,428 shares during the quarter. GW&K Investment Management LLC owned about 0.26% of Allegion worth $34,991,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also bought and sold shares of the company. Boston Partners raised its stake in shares of Allegion by 1.0% during the third quarter. Boston Partners now owns 4,746,454 shares of the scientific and technical instruments company's stock worth $842,026,000 after acquiring an additional 48,199 shares in the last quarter. State Street Corp raised its stake in shares of Allegion by 6.6% during 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 acquiring an additional 260,973 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Allegion by 0.5% during 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 acquiring an additional 13,880 shares in the last quarter. Massachusetts Financial Services Co. MA raised its stake in shares of Allegion by 10.0% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 2,593,117 shares of the scientific and technical instruments company's stock worth $412,876,000 after acquiring an additional 236,248 shares in the last quarter. Finally, Northern Trust Corp raised its stake in shares of 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 worth $214,605,000 after acquiring an additional 52,612 shares in the last quarter. 92.21% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have commented on ALLE shares. Evercore raised shares of Allegion to a "strong-buy" rating in a research note on Monday, April 13th. Weiss Ratings downgraded shares of Allegion from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 29th. Wells Fargo & Company decreased their price target 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. JPMorgan Chase & Co. reissued 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. Finally, Barclays decreased their price target on shares of Allegion from $165.00 to $161.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, Allegion has a consensus rating of "Hold" and an average price target of $160.38.

Insider Activity

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

Allegion Stock Down 1.0%

Shares of Allegion stock opened at $129.68 on Thursday. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.19 and a current ratio of 1.91. Allegion PLC has a 52-week low of $125.00 and a 52-week high of $183.11. The stock has a market capitalization of $11.14 billion, a price-to-earnings ratio of 17.72, a P/E/G ratio of 2.72 and a beta of 0.86. The company's 50 day moving average price is $136.54 and its 200-day moving average price is $152.17.

Allegion (NYSE:ALLE - Get Free Report) last issued its earnings results on Tuesday, April 28th. The scientific and technical instruments company reported $1.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.88 by ($0.08). Allegion had a return on equity of 35.41% and a net margin of 15.24%.The firm had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter in the prior year, the business posted $1.86 EPS. 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 research analysts forecast that Allegion PLC will post 8.73 EPS for the current year.

Allegion Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be issued a $0.55 dividend. The ex-dividend date is Monday, June 15th. This represents a $2.20 annualized dividend and a dividend yield of 1.7%. Allegion's dividend payout ratio (DPR) is currently 30.05%.

Allegion announced that its board has authorized a stock repurchase plan on Tuesday, April 28th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the scientific and technical instruments company to buy up to 3.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

Allegion 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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