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Dublin, Ireland-based Allegion plc (ALLE) is a global leader in security products and solutions, catering to both commercial and residential needs. With a market cap of $11.3 billion, the company specializes in locks, access control systems, and door hardware, offering innovative solutions under renowned brands like Schlage and Von Duprin.
Companies worth $10 billion or more are generally described as "large-cap stocks," Allegion fits right into that category, reflecting its significant presence and influence in the security and safety industry, providing cutting-edge products to enhance security worldwide.
ALLE stock currently trades 16.1% below its all-time high of $156.10 touched Oct. 18, last year. Meanwhile, ALLE has observed a marginal 24 bps uptick over the past three months, notably outpacing the S&P 500 Index’s ($SPX) 4.2% decline during the same time frame.
However, Allegion has notably underperformed the broader market over the longer time frame. ALLE stock has declined 9.6% over the past six months and 1% over the past 52 weeks, compared to SPX’s 1.3% dip over the past six months and 7.4% gains over the past year.
To confirm the downturn, ALLE has traded mostly below its 50-day moving average since late October 2024 and below its 200-day moving average since mid-December with some fluctuations.
Despite beating Street expectations, Allegion’s stock prices plunged 5.6% after the release of its Q4 results on Feb. 18. Driven by solid growth in revenues from the Americas region and an uptick in organic as well as acquisition-led revenues, the company’s overall topline increased 5.4% year-over-year to $945.6 million, which surpassed the consensus estimates by a small margin. Meanwhile, driven by operational efficiencies, the company also experienced modest margin expansion. Its adjusted EPS for the quarter surged 10.7% year-over-year to $1.86, surpassing the analysts’ projections by 6.9%.
For the full fiscal 2024, Allegion’s topline increased 3.3% year-over-year to $3.8 billion and its adjusted EPS grew 8.2% to $7.53. However, in 2025, the company expects to observe a notable slowdown in earnings and revenue growth. Allegion expects its 2025 revenues to grow between 1% to 3% and adjusted EPS to range between $7.65 to $7.85, representing a modest 2.9% growth at the midpoint, which unsettled investor confidence.
Meanwhile, Allegion has significantly underperformed its peer ADT Inc.’s (ADT) 15.7% surge over the past six months and 25.7% gains over the past 52 weeks.
Furthermore, analysts remain cautious about the stock’s prospects. Among the nine analysts covering ALLE, the consensus rating is a “Hold.” Its mean price target of $137.75 suggests a 5.2% upside potential from current price levels.
