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

Shares of Allegion PLC (NYSE:ALLE) were down 8.4% 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 changed 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 (EPS) for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.07). The firm had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.04 billion. Allegion had a return on equity of 40.83% and a net margin of 16.09%.Allegion’s quarterly revenue was up 9.3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.86 EPS. Allegion has set its FY 2026 guidance at 8.700-8.900 EPS.

Allegion Increases Dividend

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

Allegion News Summary

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Revenue growth and margin expansion — Allegion delivered ~9% year-over-year revenue growth for Q4 and reported margin expansion, supporting management’s message of healthy underlying demand and profit leverage. Allegion’s Q4 Earnings Miss Estimates, Revenues Increase Y/Y
• Positive Sentiment: Product & channel initiatives — Schlage/NterNow integration and new Schlage product launches (Pin & Tumbler Aspect Collection) expand software-enabled and premium hardware offerings that support recurring and higher-margin revenue opportunities. Schlage and NterNow Showcase Scalable Software Solutions
• Positive Sentiment: Strong cash generation and capital deployment — Management highlighted accretive capital deployment and cash generation in its earnings release, which supports buyback/dividend capacity and balance-sheet health. Allegion Reports Q4, Full-Year 2025 Financial Results
• Neutral Sentiment: FY2026 guidance roughly in line with consensus — Allegion set EPS guidance of $8.70–8.90 (consensus ~8.83) and revenue guidance of ~$4.3–4.4B; guidance is not materially above expectations, leaving room for investor scrutiny on execution. Allegion Reports Q4, Full-Year 2025 Financial Results
• Neutral Sentiment: Earnings materials available — The company posted the earnings press release, slide deck and call transcript for investors to review management detail on margins, end-market trends and buyback/capital plans. Allegion Earnings Materials & Transcript
• Negative Sentiment: EPS miss vs. estimates — Q4 EPS came in at $1.94 versus the consensus ~$2.01, a headline miss that pressured sentiment despite revenue growth. Why Allegion stock is trading lower today
• Negative Sentiment: Weak residential demand flagged — Several reports noted softer residential/end-consumer demand in the quarter, a key watch area since residential weakness can reduce near-term growth and margin upside. Lockmaker Allegion misses quarterly profit estimates

Analysts Set New Price Targets

ALLE has been the topic of several research reports. Wells Fargo & Company reissued a “positive” rating on shares of Allegion in a report on Tuesday, December 16th. Barclays dropped their target price on Allegion from $187.00 to $180.00 and set an “equal weight” rating on the stock in a research report on Wednesday, January 7th. Weiss Ratings reissued a “buy (b)” rating on shares of Allegion in a research report on Wednesday, January 21st. Finally, Robert W. Baird raised their price objective on Allegion from $175.00 to $190.00 and gave the company a “neutral” rating in a research report on Tuesday, October 21st. Three analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, Allegion has a consensus rating of “Hold” and an average price target of $174.25.

Institutional Investors Weigh In On Allegion

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ALLE. Westside Investment Management Inc. increased its holdings in shares of Allegion by 100.0% during the third quarter. Westside Investment Management Inc. now owns 140 shares of the scientific and technical instruments company’s stock valued at $25,000 after acquiring an additional 70 shares in the last quarter. Pinnacle Bancorp Inc. grew its position in Allegion by 255.6% during the 4th quarter. Pinnacle Bancorp Inc. now owns 160 shares of the scientific and technical instruments company’s stock worth $25,000 after purchasing an additional 115 shares during the last quarter. First Horizon Corp purchased a new stake in Allegion during the 3rd quarter worth approximately $26,000. Hantz Financial Services Inc. increased its stake in Allegion by 120.9% during the 3rd quarter. Hantz Financial Services Inc. now owns 148 shares of the scientific and technical instruments company’s stock valued at $26,000 after purchasing an additional 81 shares in the last quarter. Finally, Atlantic Union Bankshares Corp purchased a new position in shares of Allegion in the third quarter worth $29,000. 92.21% of the stock is currently owned by hedge funds and other institutional investors.

Allegion Stock Down 9.3%

The firm has a market capitalization of $14.00 billion, a price-to-earnings ratio of 22.02, a P/E/G ratio of 3.28 and a beta of 1.03. The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 1.06. The company’s 50 day moving average price is $165.44 and its 200 day moving average price is $168.21.

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.