Allegion plc

(New York Stock Exchange)
Back to all articles
Somewhat Bullish +30

Insider Selling: Allegion (NYSE:ALLE) SVP Sells $1,009,137.42 in Stock

AI-generated analysis

πŸ“‰ SVP Timothy Eckersley sold 6,417 shares for $1,009,137.42 on July 27th, reducing his position by 17.66%.

πŸ“ˆ Q2 EPS of $2.40 beat analyst estimates of $2.22, driven by revenue growth of 12.7% to $1.15 billion.

πŸ’° The company authorized a $500 million share buyback program on April 28th to reacquire up to 3.9% of outstanding shares.

πŸ“Š Key financial metrics include a debt-to-equity ratio of 0.96, a PE ratio of 20.79, and a market cap of $13.47 billion.

πŸ“‰ Morgan Stanley downgraded the price target to $142.00 with an 'equal weight' rating on June 3rd.

πŸ“‰ Barclays cut its price target from $165.00 to $161.00 and maintained an 'equal weight' rating on April 29th.

πŸ“ˆ Evercore upgraded the stock to a 'strong-buy' rating on April 13th, citing positive outlooks.

πŸ“ˆ Longbow Research raised its rating to 'buy' with a $165.00 price objective on June 11th.

🏦 Institutional ownership is high at 92.21%, with Boston Partners increasing holdings by 1.0% in Q3.

🏦 State Street Corp grew its stake by 6.6% in the third quarter, adding over 260,000 shares.

🏦 Massachusetts Financial Services Co. increased its position by 10.0% during the fourth quarter.

🏦 Invesco Ltd. boosted its stake by 12.7% in the fourth quarter, acquiring an additional 157,724 shares.

πŸ“… The company set FY 2026 EPS guidance between $8.85 and $9.00, slightly below analyst expectations of $8.92.

🏒 Allegion operates globally with a portfolio spanning mechanical locksets, door closers, and electronic access control systems.

πŸ“‰ The stock trades at a P/E/G ratio of 3.28, indicating growth relative to its valuation multiple.

Bullish Signals
  • Allegion reported Q2 EPS of $2.40, significantly beating the consensus estimate of $2.22 by $0.18.
  • Revenue grew 12.7% year-over-year to $1.15 billion, exceeding analyst expectations of $1.12 billion.
  • The company returned on equity of 35.41% and maintained a net margin of 15.36%.
  • Management authorized a $500 million stock repurchase program, signaling confidence in undervaluation.
  • Institutional investors increased stakes, with Boston Partners adding 1.0%, State Street adding 6.6%, and Invesco adding 12.7%.
  • Equity analyst Longbow Research upgraded the rating to 'buy' with a $165.00 price objective.
  • The stock trades above both its 50-day ($136.68) and 200-day ($146.66) moving averages.
Risk Factors
  • Morgan Stanley downgraded the price target from $165.00 to $142.00 with an 'equal weight' rating.
  • Barclays cut its price target from $165.00 to $161.00, maintaining an 'equal weight' rating.
  • Weiss Ratings lowered the stock rating from 'hold (c+)' to 'hold (c)' on May 29th.
  • The consensus analyst price target of $164.75 is below recent highs and some individual targets.
  • Analyst expectations for FY current earnings ($8.92) slightly exceed the company's own guidance range.
Full Analysis
Allegion PLC (NYSE: ALLE) saw Senior Vice President Timothy Eckersley sell 6,417 shares on July 27th for a total of $1,009,137.42 at an average price of $157.26. Following the transaction, Eckersley retained 29,919 shares, representing a 17.66% reduction in his position. The sale was disclosed via an SEC filing, marking a notable insider activity event for the security solutions provider. Financially, Allegion reported strong quarterly performance with $2.40 EPS, beating the consensus estimate of $2.22 by $0.18. Revenue reached $1.15 billion, up 12.7% year-over-year against a consensus of $1.12 billion. The company maintains a robust balance sheet with a debt-to-equity ratio of 0.96 and a current ratio of 1.93, while trading above its 50-day and 200-day moving averages. The company has authorized a $500 million stock repurchase program, signaling management's confidence in the stock's valuation. Analyst sentiment remains mixed with a consensus 'Hold' rating and a price target of $164.75, though recent downgrades from Morgan Stanley and Barclays contrast with upgrades from Evercore and Longbow Research. Institutional ownership stands at 92.21%, with major funds like Boston Partners and State Street increasing their stakes.