Allegion (NYSE:ALLE) Stock Price Down 8.4% Following Weak Earnings

Allegion PLC (NYSE:ALLE)’s stock price dropped 8.4% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $164.43 and last traded at $164.4050. Approximately 747,413 shares traded hands during 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 EPS for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.07). The company 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 revenue was up 9.3% on a year-over-year basis. During the same quarter last year, the business earned $1.86 EPS. Allegion has set its FY 2026 guidance at 8.700-8.900 EPS.

Allegion Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors 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. This represents a $2.20 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, March 13th. Allegion’s dividend payout ratio (DPR) is currently 27.60%.

Allegion News Roundup

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

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. California State Teachers Retirement System increased its stake in shares of Allegion by 4.0% in the fourth quarter. California State Teachers Retirement System now owns 139,045 shares of the scientific and technical instruments company’s stock valued at $22,139,000 after buying an additional 5,322 shares during the period. Russell Investments Group Ltd. boosted its holdings in Allegion by 28.6% in the fourth quarter. Russell Investments Group Ltd. now owns 142,061 shares of the scientific and technical instruments company’s stock valued at $22,712,000 after acquiring an additional 31,636 shares during the last quarter. C Partners Holding GmbH increased its position in Allegion by 32.1% in the 4th quarter. C Partners Holding GmbH now owns 352,279 shares of the scientific and technical instruments company’s stock valued at $56,090,000 after buying an additional 85,631 shares in the last quarter. Captrust Financial Advisors boosted its holdings in Allegion by 21.1% in the fourth quarter. Captrust Financial Advisors now owns 14,918 shares of the scientific and technical instruments company’s stock worth $2,375,000 after acquiring an additional 2,596 shares in the last quarter. Finally, &PARTNERS boosted its holdings in Allegion by 69.7% in the fourth quarter. &PARTNERS now owns 35,420 shares of the scientific and technical instruments company’s stock worth $5,640,000 after acquiring an additional 14,553 shares in the last quarter. 92.21% of the stock is owned by institutional investors.

Allegion Stock Down 8.6%

The stock has a market cap of $14.11 billion, a price-to-earnings ratio of 22.19, a PEG ratio of 3.28 and a beta of 1.03. The stock has a 50 day simple moving average of $165.34 and a 200 day simple moving average of $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.

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.