Allegion (NYSE:ALLE) Stock Price Down 8.4% on Disappointing Earnings

Allegion PLC (NYSE:ALLE) shares dropped 8.4% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $164.43 and last traded at $164.4050. Approximately 747,413 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 862,586 shares. The stock had previously closed at $179.50.

The scientific and technical instruments company reported $1.94 earnings per share for the quarter, missing the consensus estimate of $2.01 by ($0.07). Allegion had a net margin of 15.83% and a return on equity of 38.06%. The company had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.04 billion. During the same period in the prior year, the firm posted $1.86 EPS. The business’s revenue for the quarter was up 9.3% compared to the same quarter last year. Allegion has set its FY 2026 guidance at 8.700-8.900 EPS.

Allegion Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th will be paid a $0.55 dividend. This is an increase from Allegion’s previous quarterly dividend of $0.51. This represents a $2.20 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, March 13th. Allegion’s payout ratio is currently 27.60%.

Key Stories Impacting Allegion

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Management set FY2026 EPS guidance of $8.70–$8.90 and emphasized electronics growth and an active M&A strategy, giving investors clearer upside drivers beyond legacy hardware. Allegion outlines 2026 EPS guidance and growth strategy
• Positive Sentiment: Revenue accelerated ~9% year-over-year with margin expansion; management highlighted strong cash generation and accretive capital deployment, which supports buybacks/dividends and valuation upside. Allegion Q4 & full-year results
• Positive Sentiment: Product/partnership news: Schlage and newly-acquired NterNow are being showcased at the International Builders’ Show, illustrating progress commercializing software/connected offerings for builders — a key part of the electronics growth story. Schlage & NterNow showcase
• Neutral Sentiment: JPMorgan lowered its price target from $190 to $180 but maintained an “overweight” rating — a modest analyst downgrade on valuation that still implies mid‑teens upside from current levels. JPMorgan cuts price target to $180
• Neutral Sentiment: Allegion remains a steady Russell 1000 constituent with distributions unchanged, a sign of index stability but limited immediate catalytic impact. Russell 1000 distribution update
• Negative Sentiment: The quarter missed EPS expectations (reported ~$1.94 vs. consensus ~$2.01), driven in part by weaker residential demand; misses can pressure short-term sentiment even if guidance offsets the pain. Q4 earnings miss coverage
• Negative Sentiment: Regulatory/risk note: Allegion disclosed elevated cybersecurity risks that could affect operations, data and financial performance — a longer‑term headwind for connected-product initiatives if not managed. Cybersecurity risk disclosure
• Negative Sentiment: Some media note Allegion underperformed peers on the day, reflecting mixed market reception and sector pressure that could weigh on near-term relative performance. Underperformance vs. peers

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on ALLE. Weiss Ratings reissued a “buy (b)” rating on shares of Allegion in a research report on Wednesday, January 21st. JPMorgan Chase & Co. cut their target price on Allegion from $190.00 to $180.00 and set an “overweight” rating on the stock in a research note on Wednesday. Barclays decreased their price target on Allegion from $187.00 to $180.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 7th. Finally, Wells Fargo & Company reaffirmed a “positive” rating on shares of Allegion in a research report on Tuesday, December 16th. Three analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $175.50.

Institutional Investors Weigh In On Allegion

A number of institutional investors and hedge funds have recently bought and sold shares of ALLE. Oregon Public Employees Retirement Fund increased its stake in shares of Allegion by 0.6% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 9,817 shares of the scientific and technical instruments company’s stock valued at $1,563,000 after buying an additional 59 shares during the period. MassMutual Private Wealth & Trust FSB raised its position in shares of Allegion by 16.5% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 424 shares of the scientific and technical instruments company’s stock worth $75,000 after acquiring an additional 60 shares in the last quarter. Diversify Advisory Services LLC lifted its stake in shares of Allegion by 2.7% during the 3rd quarter. Diversify Advisory Services LLC now owns 2,308 shares of the scientific and technical instruments company’s stock worth $380,000 after purchasing an additional 60 shares during the last quarter. Huntington National Bank lifted its stake in shares of Allegion by 7.7% during the 2nd quarter. Huntington National Bank now owns 853 shares of the scientific and technical instruments company’s stock worth $123,000 after purchasing an additional 61 shares during the last quarter. Finally, HM Payson & Co. boosted its position in Allegion by 2.4% during the third quarter. HM Payson & Co. now owns 2,644 shares of the scientific and technical instruments company’s stock valued at $469,000 after purchasing an additional 63 shares in the last quarter. 92.21% of the stock is owned by institutional investors.

Allegion Price Performance

The company has a market cap of $14.00 billion, a PE ratio of 21.87, a price-to-earnings-growth ratio of 2.98 and a beta of 1.03. The company has a quick ratio of 1.11, a current ratio of 1.84 and a debt-to-equity ratio of 0.96. The firm has a 50 day simple moving average of $165.49 and a 200-day simple moving average of $168.17.

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.