Allegion (NYSE:ALLE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “Over the past month, Allegion's shares have underperformed and look overvalued compared to its industry. Material price inflation (on account of tariffs levied over U.S. imports) might continue to escalate costs and thereby hurt the company’s near-term profitability. Moreover, recently made acquisitions might continue to dilute margins in the upcoming quarters. Also, we notice that a stronger U.S. dollar might further depress the Allegion's overseas business results in the quarters ahead. Even so, Allegion's business is highly sensitive to seasonal fluctuations.”

A number of other research analysts also recently commented on the company. Credit Suisse Group assumed coverage on Allegion in a research note on Friday, October 12th. They issued an “outperform” rating and a $96.00 price target for the company. ValuEngine downgraded Allegion from a “buy” rating to a “hold” rating in a research note on Wednesday, December 5th. Finally, Wells Fargo & Co boosted their price target on Allegion from $96.00 to $99.00 and gave the company an “outperform” rating in a research note on Friday, October 26th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and four have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $95.50.

ALLE opened at $81.75 on Monday. Allegion has a fifty-two week low of $73.85 and a fifty-two week high of $94.30. The company has a debt-to-equity ratio of 2.37, a current ratio of 1.79 and a quick ratio of 1.22. The firm has a market cap of $7.80 billion, a PE ratio of 20.64, a PEG ratio of 1.30 and a beta of 1.12.

Allegion (NYSE:ALLE) last posted its earnings results on Thursday, October 25th. The scientific and technical instruments company reported $1.23 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.21 by $0.02. Allegion had a return on equity of 85.03% and a net margin of 11.75%. The company had revenue of $711.50 million during the quarter, compared to the consensus estimate of $699.07 million. On average, sell-side analysts predict that Allegion will post 4.49 EPS for the current year.

A number of hedge funds have recently bought and sold shares of ALLE. Dimensional Fund Advisors LP raised its stake in Allegion by 6.4% in the second quarter. Dimensional Fund Advisors LP now owns 455,327 shares of the scientific and technical instruments company’s stock valued at $35,224,000 after purchasing an additional 27,490 shares in the last quarter. AMP Capital Investors Ltd raised its stake in Allegion by 33.1% in the second quarter. AMP Capital Investors Ltd now owns 35,068 shares of the scientific and technical instruments company’s stock valued at $2,714,000 after purchasing an additional 8,716 shares in the last quarter. Cubist Systematic Strategies LLC raised its stake in Allegion by 45.0% in the second quarter. Cubist Systematic Strategies LLC now owns 3,723 shares of the scientific and technical instruments company’s stock valued at $288,000 after purchasing an additional 1,156 shares in the last quarter. Tower Research Capital LLC TRC acquired a new position in Allegion in the second quarter valued at about $616,000. Finally, Millennium Management LLC raised its stake in Allegion by 27.5% in the second quarter. Millennium Management LLC now owns 22,991 shares of the scientific and technical instruments company’s stock valued at $1,779,000 after purchasing an additional 4,957 shares in the last quarter. 96.40% of the stock is owned by institutional investors and hedge funds.

Allegion Company Profile

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers locks, locksets, portable locks, and key systems; door closers and exit devices; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors and door frames; and other accessories.

See Also: Inflation

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