Allegion (NYSE:ALLE) Trading Down 8.4% After Earnings Miss

Shares of Allegion PLC (NYSE:ALLE) fell 8.4% on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $164.43 and last traded at $164.4050. 747,413 shares were traded during mid-day trading, a decline of 13% from the average session volume of 862,586 shares. The stock had previously closed at $179.50.

The scientific and technical instruments company reported $1.94 EPS for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.07). Allegion had a net margin of 16.09% and a return on equity of 40.83%. The business had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter last 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 firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be given a $0.55 dividend. This represents a $2.20 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, March 13th. This is a positive change from Allegion’s previous quarterly dividend of $0.51. Allegion’s payout ratio is 27.60%.

More Allegion News

Here are the key news stories impacting Allegion this week:

• Positive Sentiment: Allegion raised its dividend by 8%, which supports income-oriented shareholders and signals management confidence in cash flow. How Allegion’s 8% Dividend Hike At Allegion (ALLE) Has Changed Its Investment Story
• Positive Sentiment: Product and go-to-market moves: Schlage is showcasing new hardware/design launches and the company is integrating NterNow’s self-guided tour software for home builders — initiatives that expand recurring software/service touchpoints and could support commercial momentum over time. Schlage and NterNow Showcase Scalable Software Solutions for Home Builders at the 2026 International Builders’ Show
• Positive Sentiment: Brand/product refresh: Schlage’s new limited-edition Pin & Tumbler collection supports premium positioning and could help margins in higher-end channels. Schlage’s Pin & Tumbler™ Studio Reveals the Aspect Collection
• Neutral Sentiment: 2026 guidance: Management set FY2026 EPS of $8.70–$8.90 and revenue about $4.3–4.4B — roughly in line with consensus but slightly below the midpoint for EPS, leaving room for mixed analyst reactions. Allegion (NYSE: ALLE) Reports Q4, Full-Year 2025 Financial Results, Introduces 2026 Outlook
• Neutral Sentiment: Top-line strength: Q4 revenue rose ~9.3% year-over-year, and the company continues to generate strong ROE and cash, which supports the long-term case despite the near-term churn. Allegion Q4 Revenue and Materials
• Negative Sentiment: Q4 earnings miss: Allegion reported $1.94 EPS vs. the $2.01 consensus and revenue slightly below estimates — the direct catalyst for the stock decline as investors weighed near-term profitability versus expectations. Allegion (ALLE) Q4 Earnings Miss Estimates
• Negative Sentiment: Margin scrutiny: Several market write-ups highlighted margin stability as a focal risk heading into the print — any signs of margin pressure or slower margin recovery could keep downside pressure on the stock near-term. Allegion (NYSE:ALLE) Margin Stability Draws Focus In S&P 500 Futures Market

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Robert W. Baird lifted their target price on Allegion from $175.00 to $190.00 and gave the company a “neutral” rating in a research report on Tuesday, October 21st. Weiss Ratings restated a “buy (b)” rating on shares of Allegion in a research note on Wednesday, January 21st. Barclays cut their price objective on shares of Allegion from $187.00 to $180.00 and set an “equal weight” rating on the stock in a report on Wednesday, January 7th. Finally, Wells Fargo & Company reiterated a “positive” rating on shares of Allegion in a 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 company currently has an average rating of “Hold” and a consensus price target of $174.25.

Institutional Investors Weigh In On Allegion

Several large investors have recently modified their holdings of ALLE. Westside Investment Management Inc. grew its holdings in 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 purchasing an additional 70 shares during the period. First Horizon Corp bought a new position in shares of Allegion during the 3rd quarter worth $26,000. Hantz Financial Services Inc. increased its holdings in Allegion by 120.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 148 shares of the scientific and technical instruments company’s stock worth $26,000 after acquiring an additional 81 shares during the last quarter. Pinnacle Bancorp Inc. raised its stake in Allegion by 255.6% in the 4th quarter. Pinnacle Bancorp Inc. now owns 160 shares of the scientific and technical instruments company’s stock valued at $25,000 after acquiring an additional 115 shares during the period. Finally, Atlantic Union Bankshares Corp purchased a new stake in Allegion during the third quarter valued at about $29,000. Hedge funds and other institutional investors own 92.21% of the company’s stock.

Allegion Price Performance

The business’s 50-day simple moving average is $165.34 and its two-hundred day simple moving average is $168.22. 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 stock has a market cap of $14.11 billion, a P/E ratio of 22.19, a price-to-earnings-growth ratio of 3.28 and a beta of 1.03.

Allegion Company Profile

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.