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Based in Dublin, Ireland, Allegion plc (ALLE) manufactures and sells mechanical and electronic security products and solutions. Valued at a market cap of $12.3 billion, the company offers doors and door systems, electronic security products, biometric and mobile access control systems, locksets, workforce productivity systems, and other accessories.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Allegion fits right into that category. The company operates under more than 30 well-known brands, including CISA, Interflex, LCN, Schlage, and Von Duprin, and sells its products and services in almost 120 countries. It is renowned for its innovative and high-quality security products and solutions.
Shares of ALLE are trading 3.2% below their 52-week high of $146.41, which they hit on Sep. 18. The security company’s stock has gained 22% over the past three months, surpassing the Industrial Select Sector SPDR Fund’s (XLI) 8.4% gain over the same time frame.
In the longer term, ALLE stock is up 11.9% on a YTD basis, lagging behind XLI’s 17% gains. But, shares of ALLE have rallied 36.6% over the past 52 weeks, outperforming XLI’s 31% returns over the same time frame.
To confirm its bullish trend, ALLE has been trading above its 200-day and 50-day moving average since early July.
Shares of ALLE increased for five consecutive trading sessions after its Q2 earnings release on Jul. 24. The company reported adjusted earnings of $1.96 per share, surpassing Wall Street estimates of $1.77. Moreover, its adjusted revenue of $965.6 million topped Street forecasts by 2.26%. Allegion expects full-year earnings from $7.15 to $7.30 per share.
ALLE has surpassed its rival, A. O. Smith Corporation (AOS), which gained 29.2% over the past 52 weeks and 1.1% on a YTD basis.
Despite ALLE’s recent outperformance relative to the broader sector, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from seven analysts in coverage, and as of writing, the stock is trading above its mean price target of $130.33.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
