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Wall Street JournalEN
Why Allegion (ALLE) Shares Are Sliding Today
What Happened?
Shares of security hardware provider Allegion (NYSE:ALLE) fell 2.4% in the afternoon session after Wells Fargo analyst Joseph O'Dea lowered the company's price target, and the stock traded ex-dividend.
The analyst reduced the price target on Allegion shares to $175 from $185, a 5.41% decrease, while keeping an Equal-Weight rating on the stock. This adjustment prompted investor concern about the company's outlook. In addition, the stock traded ex-dividend, meaning investors who purchased shares on or after this day would not receive the upcoming dividend payment of $0.51 per share. When a stock goes ex-dividend, its price often drops by an amount similar to the dividend, as the payout is no longer included in the stock's value for new buyers.
The shares closed the day at $159.70, down 2.1% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Allegion? Access our full analysis report here.
What Is The Market Telling Us
Allegion’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 4.5% on the news that the security products manufacturer posted strong second-quarter results that beat analyst expectations and raised its full-year financial guidance.
The company announced second-quarter revenue of $1.02 billion, marking a 5.8% increase year-over-year and surpassing the $1 billion milestone for the first time in its history. Allegion's adjusted earnings per share (EPS) of $2.04 also exceeded Wall Street's consensus estimate of $1.99. Bolstering investor confidence, the company lifted its full-year 2025 financial outlook. It increased its adjusted EPS guidance to a new range of $8.00 to $8.15, which was notably above the prior analyst consensus of $7.85. Furthermore, the company raised its expected revenue growth for the year to between 6.5% and 7.5%.
Allegion is up 24.2% since the beginning of the year, but at $159.70 per share, it is still trading 11% below its 52-week high of $179.47 from October 2025. Investors who bought $1,000 worth of Allegion’s shares 5 years ago would now be looking at an investment worth $1,436.
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