Zacks Investment Research Lowers Allegion (ALLE) to Sell

Zacks Investment Research cut shares of Allegion (NYSE:ALLE) from a hold rating to a sell rating in a report released on Wednesday.

According to Zacks, “Over the past three months, Allegion's shares have underperformed and look overvalued compared to its industry. Material price inflation (on account of tariffs levied over U.S. imports) might continue to escalate costs and thereby hurt the company’s near-term profitability. Moreover, recently made acquisitions might continue to dilute margins in the upcoming quarters. Also, we notice that a stronger U.S. dollar might further depress the Allegion's overseas business results in the quarters ahead. Moreover, the company's business is highly sensitive to seasonal fluctuations.”

A number of other research analysts have also recently commented on the company. ValuEngine cut Allegion from a buy rating to a hold rating in a research note on Wednesday, December 5th. Credit Suisse Group initiated coverage on Allegion in a research note on Friday, October 12th. They set an outperform rating and a $96.00 price target on the stock. Finally, Wells Fargo & Co upped their price target on Allegion from $96.00 to $99.00 and gave the stock an outperform rating in a research note on Friday, October 26th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the company. Allegion currently has an average rating of Hold and a consensus target price of $95.50.

ALLE opened at $91.39 on Wednesday. Allegion has a one year low of $73.85 and a one year high of $94.30. The company has a market capitalization of $8.63 billion, a P/E ratio of 23.08, a price-to-earnings-growth ratio of 1.44 and a beta of 1.21. The company has a debt-to-equity ratio of 2.37, a quick ratio of 1.22 and a current ratio of 1.79.

The company also recently declared a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Friday, March 15th will be paid a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 1.18%. This is a boost from Allegion’s previous quarterly dividend of $0.21. The ex-dividend date is Thursday, March 14th. Allegion’s dividend payout ratio is 21.21%.

Large investors have recently added to or reduced their stakes in the business. Millennium Management LLC increased its position in shares of Allegion by 27.5% during the second quarter. Millennium Management LLC now owns 22,991 shares of the scientific and technical instruments company’s stock worth $1,779,000 after acquiring an additional 4,957 shares during the period. Schroder Investment Management Group increased its position in shares of Allegion by 39.4% during the second quarter. Schroder Investment Management Group now owns 349,600 shares of the scientific and technical instruments company’s stock worth $26,982,000 after acquiring an additional 98,800 shares during the period. Atria Investments LLC increased its position in shares of Allegion by 86.9% during the third quarter. Atria Investments LLC now owns 7,528 shares of the scientific and technical instruments company’s stock worth $682,000 after acquiring an additional 3,501 shares during the period. We Are One Seven LLC purchased a new stake in shares of Allegion during the third quarter worth $359,000. Finally, State of Alaska Department of Revenue increased its position in shares of Allegion by 13.4% during the third quarter. State of Alaska Department of Revenue now owns 20,470 shares of the scientific and technical instruments company’s stock worth $1,852,000 after acquiring an additional 2,417 shares during the period. Institutional investors own 95.85% of the company’s stock.

About Allegion

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers locks, locksets, portable locks, and key systems; door closers and exit devices; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors and door frames; and other accessories.

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