Valued at a market cap of $11.5 billion, Allegion plc (ALLE) is a global provider of security and access solutions for homes, businesses, schools, and institutions. Headquartered in Dublin, Ireland, the company designs and manufactures a wide range of products that help secure and manage access to buildings and facilities. Its portfolio includes mechanical and electronic locks, door closers, exit devices, key systems, access control systems, and biometric and digital security solutions.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and ALLE fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the security & protection services industry. Allegion focuses on combining traditional security hardware with smart and connected technologies to provide seamless and secure access solutions.
However, this security products and solutions provider has slipped 27.1% from its 52-week high of $183.11, reached on Feb. 12. Shares of Allegion have declined 7.7% over the past three months, trailing the broader S&P 500 Index ($SPX), which surged 13.5% during the same period.
Moreover, on a YTD basis, shares of ALLE are down 16.1%, compared to SPX’s 9.6% return. In the longer term, ALLE has slumped 2.4% over the past 52 weeks, underperforming the index’s 25.4% uptick over the same time frame.
To confirm its bearish trend, ALLE has been trading below its 200-day and 50-day moving averages since mid-February.
On June 11, shares of Allegion rose more than 3% after Longbow Research upgraded the security products maker to "Buy" from "Neutral" and assigned a $165 price target. The upgrade reflected the firm's optimism about Allegion's growth prospects and confidence in the company's ability to benefit from favorable trends in the non-residential construction and electronic access solutions markets.
When compared to its rival, Allegion has notably outperformed ADT Inc. (ADT), which declined 19.2% over the past 52 weeks and 18.5% on a YTD basis.
Despite ALLE’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 13 analysts covering it, and the mean price target of $163.58 suggests a 22.5% premium to its current price levels.
On the date of publication, Kritika Sarmah 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.
/Micron%20Technology%20Inc_%20logo%20on%20building-by%20vzphotos%20vis%20iStock.jpg)
/Accenture%20plc%20buiding%20with%20logo-by%20JHVEPhoto%20via%20iStock.jpg)
