Allegion plc (NYSE: ALLE) Monthly Stock Report - December 14, 2025

Company Overview

Allegion plc, headquartered in Dublin, Ireland, is a prominent player in the Security & Protection Services industry, part of the broader Industrials sector. Since its incorporation in 2013, Allegion has devoted itself to enhancing security across various settings, including education, healthcare, hospitality, and residential areas. The company offers an expansive array of security products and solutions globally, such as door controls, electronic security systems, locks, and key management solutions. Notable brands like Schlage and Von Duprin distribute these products through diverse channels, including online platforms and retail outlets. With a 2025 total revenue of approximately $3.98 billion, Allegion stands as a robust entity in its sector, committed to delivering innovative solutions for security needs worldwide.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Over the last year, Allegion's stock has exhibited considerable volatility yet overall maintains a bullish trend. Current trading prices at $160.41 reflect key positions; notably, the stock peaked at a 52-week high of $180.68 in October after recovering from a low of $116.57. This solid performance signifies an impressive 18.28% increase from the beginning of the year.

Technical Analysis Insights:

• Moving Averages: The stock is currently trading below its 50-day moving average of $168.04, indicating potential bearish sentiment or a consolidation phase. The recent price action suggests a pullback that may represent an opportunity for discerning investors.
• Support and Resistance Levels: Key support is observed around $160, a level where buying interest has emerged, while $180 serves as a resistance point, challenging sustained upward momentum.
• Momentum Indicators: Despite recent dips, Allegion's price action during much of the year stayed above the moving averages, indicating positive long-term momentum. Nonetheless, a double top formation could signal caution, suggesting that if it fails to hold the $160 support, a bearish reversal could ensue.

Investors should carefully monitor for breakouts above the $180 resistance or breakdowns below the $160 support to guide their trading decisions.

Financial Performance and Metrics

Allegion's financial health reflects strong operational efficacy. Here are noteworthy financial metrics for Q3 2025: - Revenue: $1,070.2 million for the quarter, representing a 10.7% YoY growth. - EBITDA: Approximately $961.6 million, affirming robust profitability. - Earnings Per Share (EPS): Adjusted at $2.30, which shows an increase of 6.5%. - Full-Year Guidance: Revenue growth projected between 7.0%-8.0%, with EPS expectations rising to $8.10-$8.20.

The company's share structure, consisting of approximately 86 million shares outstanding, with 2.6 million shares short, implies an investor sentiment leaning towards optimism, backed by only 3.47% of the float anticipating a stock decline.

Valuation analysis shows Allegion's stock trading at a price-to-earnings (P/E) ratio reflective of a justified premium, given the expected growth trajectory. The calculated average target price of $183.09 and a high of $203.00 display an optimism amongst analysts, although current trading levels suggest caution.

Recent News and Developments

Recent strategic moves signal Allegion's commitment to growth and innovation: - Acquisition of Lemaar Australia (February 2025): This acquisition bolsters Allegion's footprint in the Australian market, potentially unlocking new revenue streams. - Increased Dividend (August 2025): The quarterly dividend raised by 6% to $0.51, not only demonstrates Allegion's commitment to returning value to shareholders but may also appeal to income-focused investors. - Analyst Upgrades: Barclays' recent upgrade of Allegion to "Equal-Weight" with a price target increase from $156 to $163 reflects a positive consensus among industry experts regarding the company's prospects.

With such proactive developments, Allegion underscores its robust strategic framework aimed at sustaining long-term growth.

Market Sentiment and Analyst Recommendations

As noted, the consensus for Allegion plc among 11 analysts positions it at a 'hold' rating with a score averaging 2.58 on a scale where 1 is 'strong buy' and 5 is 'sell.' - Price Targets: Analysts have set a median target price of $185.00, indicating optimism relative to current trading levels, with the assurance of caringly navigating market conditions.

Despite being below its 50-day moving average, the relatively low short interest suggests that investors generally see value in holding the stock rather than speculative selling, implying a stable outlook.

Conclusion

In conclusion, Allegion plc presents a compelling case for investors looking for exposure in the security solutions sector. With significant growth metrics, strategic acquisitions, and a solid dividend framework, Allegion demonstrates resilience and opportunity for both current stakeholders and prospective investors. However, cautious consideration of resistance and support levels alongside price momentum is crucial for navigating the stock's potential volatility in the coming months. Investors are encouraged to assess their positions in alignment with market sentiment and technical indicators, focusing on key levels at $160 and $180 as pivotal markers for future performance.