- BofA Maintains a Neutral Rating on Allegion plc (ALLE)
May 11, 2026
Allegion plc (NYSE:ALLE) is one of the Best Industrial Stocks.
On April 29, 2026, BofA lowered the price target for Allegion plc (NYSE:ALLE) to $150 from $157. It retained a Neutral rating on the shares. The firm noted less than expected first-quarter performance and lower sector multiples.
On April 28, the firm announced its results for the first quarter of 2026. Allegion plc (NYSE:ALLE) made $1.03 billion in revenue. It is 9.7% more than the same time last year. Allegion plc (NYSE:ALLE) also had a 2.6% growth in revenue. The company also secured an income of $138.1 million, which is $1.59 per share, and its adjusted earnings per share were $1.80, being 3.2% less than the year before.SentinelOne (S) Partners with Silverfort on AI and Identity Security
Allegion plc (NYSE:ALLE) had an operating income of $195.3 million. It is 0.6% less than the quarter before. The firm had a 2.6% spike in adjusted operating income.
The firm’s margins dipped. It also reported an operating margin at 18.9% and the adjusted operating margin at 21.2%. It is pertinent to mention that both margins were lower than the previous year.
The CEO, John H. Stone, said that Allegion plc (NYSE:ALLE) had a first quarter with a lot of revenue growth, especially in the Americas’ non-residential and electronics businesses.
Allegion plc (NYSE:ALLE) is a firm that works in the security products and solutions. It works through Allegion Americas and Allegion International segments.
While we acknowledge the potential of ALLE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
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- Jefferies Group's Strategic Moves: State Street SPDR S&P 500 ETF Trust Sees -1. ...
May 8, 2026
This article first appeared on GuruFocus.
Jefferies Group (Trades, Portfolio)'s Recent 13F Filing Reveals Strategic Adjustments
Warning! GuruFocus has detected 8 Warning Sign with C. Is SPY fairly valued? Test your thesis with our free DCF calculator.
Jefferies Group (Trades, Portfolio) recently submitted its 13F filing for the first quarter of 2026, offering a glimpse into its strategic investment decisions during this period. Founded by Harvard graduates Ian Cummings and Joseph S. Steinberg, the company gained control of Talcott National Corporation in 1980, later renaming it Leucadia National. In 2013, Jefferies Group (Trades, Portfolio) acquired the company, with Richard Handler assuming the role of CEO. Renamed Jefferies Financial Group (JEF) in 2018, the firm operates through various subsidiaries, engaging in investment banking, telecommunications, healthcare services, and more. Jefferies employs a value investing approach, focusing on acquiring distressed companies at discounted prices, revitalizing them, and selling them for profit. The strategy emphasizes not overpaying, investing in essential products or services, and prioritizing sheltered earnings over taxed earnings.
Summary of New Buy
Jefferies Group (Trades, Portfolio) added a total of 366 stocks, among them:
The most significant addition was State Street SPDR S&P Retail ETF (XRT), with 1,230,000 shares, accounting for 0.69% of the portfolio and a total value of $98.98 million. The second largest addition to the portfolio was Allegion PLC (NYSE:ALLE), consisting of 335,391 shares, representing approximately 0.34% of the portfolio, with a total value of $48.73 million. The third largest addition was GRAIL Inc (NASDAQ:GRAL), with 657,500 shares, accounting for 0.24% of the portfolio and a total value of $33.98 million.
Key Position Increases
Jefferies Group (Trades, Portfolio) also increased stakes in a total of 375 stocks, among them:
The most notable increase was Broadcom Inc (NASDAQ:AVGO), with an additional 311,651 shares, bringing the total to 342,431 shares. This adjustment represents a significant 1,012.51% increase in share count, a 0.67% impact on the current portfolio, with a total value of $105.99 million. The second largest increase was Meta Platforms Inc (NASDAQ:META), with an additional 140,568 shares, bringing the total to 180,070. This adjustment represents a significant 355.85% increase in share count, with a total value of $103.02 million.
Summary of Sold Out
Jefferies Group (Trades, Portfolio) completely exited 405 holdings in the first quarter of 2026, as detailed below:
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Cidara Therapeutics Inc (CDTX): Jefferies Group (Trades, Portfolio) sold all 766,520 shares, resulting in a -0.88% impact on the portfolio. Comerica Inc (CMA): Jefferies Group (Trades, Portfolio) liquidated all 1,006,259 shares, causing a -0.45% impact on the portfolio.
Key Position Reduces
Jefferies Group (Trades, Portfolio) also reduced positions in 466 stocks. The most significant changes include:
Reduced State Street SPDR S&P 500 ETF Trust (SPY) by 537,017 shares, resulting in a -45.97% decrease in shares and a -1.9% impact on the portfolio. The stock traded at an average price of $679.9 during the quarter and has returned 7.06% over the past 3 months and 8.43% year-to-date. Reduced NVIDIA Corp (NASDAQ:NVDA) by 1,330,852 shares, resulting in a -64.19% reduction in shares and a -1.29% impact on the portfolio. The stock traded at an average price of $183.46 during the quarter and has returned 16.40% over the past 3 months and 15.72% year-to-date.
Portfolio Overview
At the first quarter of 2026, Jefferies Group (Trades, Portfolio)'s portfolio included 1,571 stocks. The top holdings included 2.87% in State Street SPDR S&P 500 ETF Trust (SPY), 2.07% in State Street SPDR S&P Biotech ETF (XBI), 1.75% in INVESCO QQQ Trust (NASDAQ:QQQ), 1.53% in iShares Russell 2000 Index Fund (IWM), and 0.9% in NVIDIA Corp (NASDAQ:NVDA).
The holdings are mainly concentrated in all 11 industries: Healthcare, Technology, Industrials, Financial Services, Consumer Cyclical, Energy, Communication Services, Consumer Defensive, Basic Materials, Utilities, and Real Estate.
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- 2 of Wall Street’s Favorite Stocks for Long-Term Investors and 1 We Avoid
May 5, 2026
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. That said, here are two stocks where Wall Street’s positive outlook is supported by strong fundamentals and one where analysts may be overlooking some important risks.
One Stock to Sell:
Hilton Grand Vacations (HGV)
Consensus Price Target: $56.40 (22.6% implied return)
Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.
Why Do We Think HGV Will Underperform?
Performance surrounding its members has lagged its peers Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions High net-debt-to-EBITDA ratio of 9× increases the risk of forced asset sales or dilutive financing if operational performance weakens
Hilton Grand Vacations is trading at $46.01 per share, or 8x forward P/E. To fully understand why you should be careful with HGV, check out our full research report (it’s free).
Two Stocks to Watch:
Allegion (ALLE)
Consensus Price Target: $167.58 (22.3% implied return)
Allegion plc (NYSE:ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.
Why Does ALLE Stand Out?
Healthy operating margin of 19.6% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs ALLE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $137.02 per share, Allegion trades at 15.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
LendingClub (LC)
Consensus Price Target: $23.05 (35.1% implied return)
Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE:LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.
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Why Are We Bullish on LC?
Annual revenue growth of 28.7% over the past five years was outstanding, reflecting market share gains this cycle Additional sales over the last two years increased its profitability as the 109% annual growth in its earnings per share outpaced its revenue Management team has demonstrated it can invest in profitable ventures through its 11.5% five-year return on equity
LendingClub’s stock price of $17.07 implies a valuation ratio of 9.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
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- Stock Market Today, May 4: ADT Falls as Apollo Exits Stake Through 102 Million-Share Offering
May 4, 2026 · fool.com
Apollo's exit puts a large block of ADT shares into the market, while the company's concurrent buyback absorbs only part of the selling pressure.
- Reddit Upgraded, Spotify Downgraded: Updated Rankings on Top Blue-Chip Stocks
May 4, 2026
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 123 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
This Week’s Ratings Changes:
Upgraded: Strong to Very Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AM Antero Midstream Corp. A C A DAR Darling Ingredients Inc A B A ET Energy Transfer LP A C A ETR Entergy Corporation A C A FTAI FTAI Aviation Ltd. A C A GOOGL Alphabet Inc. Class A A B A IMO Imperial Oil Limited A C A PAA Plains All American Pipeline, L.P. A C A POWL Powell Industries, Inc. A B A RIO Rio Tinto plc Sponsored ADR A C A SANM Sanmina Corporation A B A TEVA Teva Pharmaceutical Industries Limited Sponsored ADR A B A TTE TotalEnergies SE A B A VTR Ventas, Inc. A C A
Downgraded: Very Strong to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AEM Agnico Eagle Mines Limited A B B APG APi Group Corporation A C B ATI ATI Inc. A B B AU Anglogold Ashanti PLC A C B EQT EQT Corporation B B B KLAC KLA Corporation A C B RGC Regencell Bioscience Holdings Ltd. A C B VIV Telefonica Brasil SA Sponsored ADR A B B WPM Wheaton Precious Metals Corp B B B
Upgraded: Neutral to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BEN Franklin Resources, Inc. B B B DDOG Datadog, Inc. Class A B C B FMX Fomento Economico Mexicano SAB de CV Sponsored ADR Class B B B B GD General Dynamics Corporation B C B ILMN Illumina, Inc. B C B LIN Linde plc B C B LLY Eli Lilly and Company C B B LMT Lockheed Martin Corporation B C B NTRA Natera, Inc. B C B O Realty Income Corporation B C B PKX POSCO Holdings Inc. Sponsored ADR B C B RDDT Reddit, Inc. Class A C B B ROKU Roku, Inc. Class A B B B TFII TFI International Inc. B C B TXT Textron Inc. B C B
Downgraded: Strong to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AWK American Water Works Company, Inc. B D C BALL Ball Corporation C C C BCH Banco de Chile Sponsored ADR B C C BIP Brookfield Infrastructure Partners L.P. B D C BSBR Banco Santander (Brasil) S.A. Sponsored ADR C B C CEG Constellation Energy Corporation B D C CHT Chunghwa Telecom Co., Ltd Sponsored ADR C C C CINF Cincinnati Financial Corporation C B C CVNA Carvana Co. Class A C B C DLR Digital Realty Trust, Inc. C B C DLTR Dollar Tree, Inc. C B C DOV Dover Corporation C C C EXC Exelon Corporation B C C FUTU Futu Holdings Ltd. Sponsored ADR Class A C B C HLT Hilton Worldwide Holdings Inc. B C C IHG InterContinental Hotels Group PLC Sponsored ADR C C C KNX Knight-Swift Transportation Holdings Inc. Class A B D C MAR Marriott International, Inc. Class A B D C ONTO Onto Innovation, Inc. B D C REGN Regeneron Pharmaceuticals, Inc. C C C RGLD Royal Gold, Inc. B C C SPG Simon Property Group, Inc. C B C TRV Travelers Companies, Inc. C B C WM Waste Management, Inc. C C C
Upgraded: Weak to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AFRM Affirm Holdings, Inc. Class A D B C AXP American Express Company D C C BLK BlackRock, Inc. D C C CNC Centene Corporation C B C EG Everest Group, Ltd. D C C F Ford Motor Company D B C IEX IDEX Corporation C C C MDLZ Mondelez International, Inc. Class A D C C OMC Omnicom Group Inc C C C PAG Penske Automotive Group, Inc. C C C PSA Public Storage D C C PSKY Paramount Skydance Corporation Class B C D C PSO Pearson PLC Sponsored ADR D C C QCOM QUALCOMM Incorporated C B C RCL Royal Caribbean Group D C C SBUX Starbucks Corporation C B C TROW T. Rowe Price Group, Inc. C C C UL Unilever PLC Sponsored ADR D C C UNH UnitedHealth Group Incorporated C C C UNM Unum Group D C C XYZ Block, Inc. Class A C C C
Downgraded: Neutral to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade ALLE Allegion Public Limited Company D C D APTV Aptiv PLC D C D DB Deutsche Bank Aktiengesellschaft D C D DHI D.R. Horton, Inc. D C D ECL Ecolab Inc. D C D FTV Fortive Corp. D C D HBAN Huntington Bancshares Incorporated D C D HLN Haleon PLC Sponsored ADR D C D HOOD Robinhood Markets, Inc. Class A D C D ICE Intercontinental Exchange, Inc. D B D MSCI MSCI Inc. Class A D C D PFGC Performance Food Group Co D C D PHG Koninklijke Philips N.V. Sponsored ADR D B D PHM PulteGroup, Inc. D D D SPOT Spotify Technology SA F B D SUI Sun Communities, Inc. D D D VRTX Vertex Pharmaceuticals Incorporated D C D WY Weyerhaeuser Company D B D
Upgraded: Very Weak to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AVB AvalonBay Communities, Inc. F C D CRBG Corebridge Financial, Inc. F C D CSGP CoStar Group, Inc. F B D DEO Diageo plc Sponsored ADR F C D FICO Fair Isaac Corporation F C D KHC Kraft Heinz Company F D D PAYX Paychex, Inc. F C D TEAM Atlassian Corp Class A F B D
Downgraded: Weak to Very Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BR Broadridge Financial Solutions, Inc. F C F CDW CDW Corporation F C F CHKP Check Point Software Technologies Ltd. F C F CTSH Cognizant Technology Solutions Corporation Class A F C F EQR Equity Residential F D F GDDY GoDaddy, Inc. Class A F C F GPN Global Payments Inc. F D F HD Home Depot, Inc. F C F MKL Markel Group Inc. F D F NOW ServiceNow, Inc. F C F NVR NVR, Inc. F D F PGR Progressive Corporation F C F SYK Stryker Corporation F C F UBER Uber Technologies, Inc. F C F
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To learn more about my premium service, Growth Investor, and get my latest picks, go here. Or, if you are a member of one of my premium services, you can go here to get started.
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Editor, Market 360
The post Reddit Upgraded, Spotify Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.
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- Allegion plc Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
May 1, 2026
Allegion plc (NYSE:ALLE) shareholders are probably feeling a little disappointed, since its shares fell 6.7% to US$137 in the week after its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of US$1.0b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.4% to hit US$1.59 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Allegion after the latest results.
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.NYSE:ALLE Earnings and Revenue Growth May 1st 2026
Taking into account the latest results, the consensus forecast from Allegion's twelve analysts is for revenues of US$4.38b in 2026. This reflects a modest 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.1% to US$8.05. Before this earnings report, the analysts had been forecasting revenues of US$4.32b and earnings per share (EPS) of US$8.14 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Allegion
There were no changes to revenue or earnings estimates or the price target of US$168, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Allegion at US$189 per share, while the most bearish prices it at US$150. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Allegion's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 7.1% growth on an annualised basis. That is in line with its 8.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.9% per year. So although Allegion is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
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The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$168, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Allegion going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Allegion you should be aware of.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- Allegion Weighs DCI Acquisition Benefits Against ERP Execution Risks
Apr 30, 2026
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Allegion (NYSE:ALLE) has acquired DCI, a move aimed at strengthening its West Coast presence and supply chain footprint. The company is also working through operational disruptions tied to an ERP implementation in its International segment. Both developments are material for Allegion's competitive position and day to day execution and have not yet been covered in prior articles here.
Allegion, trading at $137.37, sits at an interesting point for investors watching execution risk and competitive positioning. The stock has seen a 14.6% decline year to date, while the 3 year return of 31.7% and 5 year return of 8.4% highlight a mixed profile over different time frames.
For readers, the key question is how the DCI acquisition and the ERP rollout issues reshape Allegion's risk reward balance. The combination of integration progress, supply chain changes on the West Coast, and stabilization in the International segment could be important factors in how the business performs from here.
Stay updated on the most important news stories for Allegion by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Allegion.NYSE:ALLE Earnings & Revenue Growth as at Apr 2026
6 things going right for Allegion that this headline doesn't cover.
Quick Assessment
✅ Price vs Analyst Target: At US$137.37 versus an average analyst target of US$167.58, the shares sit about 22% below consensus. ⚖️ Simply Wall St Valuation: Shares are described as trading close to estimated fair value, so the valuation signal is broadly neutral. ❌ Recent Momentum: The 30 day return of roughly 3.9% decline shows pressure on the share price as the DCI deal and ERP issues play out.
There is only one way to know the right time to buy, sell or hold Allegion. Head to Simply Wall St's company report for the latest analysis of Allegion's Fair Value.
Key Considerations
📊 The DCI acquisition could reshape Allegion's West Coast reach and supply chain, so watch how management describes integration benefits and any cost changes. 📊 The International ERP rollout is a key execution test, with updates on order flow, service levels and one off costs worth tracking in quarterly results. ⚠️ With one identified risk linked to a high level of debt, investors may want to see that acquisition spending and ERP costs do not push leverage uncomfortably higher.
Dig Deeper
For the full picture including more risks and rewards, check out the complete Allegion analysis. Alternatively, you can visit the community page for Allegion to see how other investors believe this latest news will impact the company's narrative.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ALLE.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Allegion PLC (ALLE) Q1 2026 Earnings Call Highlights: Strong Revenue Growth Amid Margin Pressures
Apr 29, 2026
This article first appeared on GuruFocus.
Revenue: Over $1 billion, an increase of 9.7% compared to 2025. Organic Revenue Growth: Increased by 2.6% in the quarter. Adjusted Operating Margin: 21.2%, down 150 basis points compared to last year. Adjusted Earnings Per Share (EPS): $1.80, a decrease of $0.06 or 3.2% versus the prior year. Available Cash Flow: $80.3 million, consistent with the prior year. Americas Segment Revenue: $809.9 million, up 6.9% on a reported basis and 4.5% on an organic basis. International Segment Revenue: $223.7 million, up 21.5% on a reported basis and down 5.3% organically. Dividends Paid: $47 million in the quarter. Share Repurchase: $40 million of Allegion shares repurchased in the first quarter. Net Debt to Adjusted EBITDA Ratio: 1.7 times.
Warning! GuruFocus has detected 1 Warning Sign with ALLE. Is ALLE fairly valued? Test your thesis with our free DCF calculator.
Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Allegion PLC (NYSE:ALLE) reported a high single-digit revenue growth in Q1, driven by the Americas non-residential business and acquisitions. The company raised its reported revenue outlook for the year to 6% to 8% due to the DCI acquisition. Allegion PLC (NYSE:ALLE) introduced the next generation LCN Senior Swing series of auto operators, which are expected to drive organic growth. The acquisition of DCI is expected to improve competitiveness on the West Coast, enhancing service and reducing costs. Allegion PLC (NYSE:ALLE) was honored with the Gallup Exceptional Workplace Award for the third consecutive year, highlighting strong workplace culture.
Negative Points
Q1 organic revenue growth and margins in the International segment were negatively impacted by an ERP implementation. Adjusted operating margin decreased by 150 basis points compared to last year, due to volume declines and mix. Adjusted earnings per share decreased by 3.2% versus the prior year, impacted by higher tax and interest. The Americas segment experienced a 110 basis points decline in adjusted operating margins due to acquisitions and unfavorable mix. The International segment saw a 220 basis points decrease in adjusted operating margin, affected by ERP-related inefficiencies.
Q & A Highlights
Q: Can you provide insights on the demand side in the Americas, particularly regarding spec activity and any elongation from spec to order? A: John Stone, President and CEO, noted that spec activity is strong, particularly in non-residential sectors, and is broad-based. There hasn't been a significant change in the timeline from spec to order. The environment remains consistent, with no notable elongation. Additionally, data centers are not crowding out other projects in their space.
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Q: How is Allegion addressing the 1% COGS headwind from tariffs and inflation? A: John Stone explained that the company plans to mitigate this through pricing actions, which could include surcharges or list price increases, although these are not yet in the market. Cost actions will also contribute to offsetting the impact, aiming for neutrality in adjusted operating income and EPS.
Q: Could you elaborate on the mix impacts affecting North America margins and expectations for the rest of the year? A: Michael Wagnes, CFO, stated that the negative mix impact in Q1 was due to product mix within non-residential businesses. He expects the mix to even out over the year, with margin expansion anticipated more in the back half of the year.
Q: What caused the deceleration in the Americas electronics business growth from Q4 to Q1, and what are the growth expectations moving forward? A: Michael Wagnes attributed the deceleration to strong prior-year comps. Despite this, electronics remain a long-term growth driver for Allegion, with adoption rates increasing. John Stone added that the company continues to roll out new products, supporting long-term growth.
Q: What were the challenges with the ERP implementation in the international segment, and how do you plan to recover? A: John Stone acknowledged that the ERP implementation in a legacy mechanical business in Europe caused most of the organic revenue and margin decline in Q1. Production rates are improving, and the company expects to recover the Q1 shortfall over the year, supported by existing orders and backlog.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- Why Allegion (ALLE) Stock Is Down Today
Apr 29, 2026
What Happened?
Shares of security hardware provider Allegion (NYSE:ALLE) fell 7.1% in the afternoon session after the company reported first-quarter 2026 results that missed Wall Street's profit estimates.
The company posted adjusted earnings per share of $1.80, falling short of the consensus estimate of $1.90 and declining from $1.86 in the same quarter last year. Profitability also came under pressure, with the company's operating margin falling to 18.9% from 20.9% a year ago.
While revenue grew 9.7% year-over-year to $1.03 billion and narrowly beat expectations, the underlying performance was less impressive. Organic revenue, which strips out acquisitions and currency fluctuations, grew by only 2.6%, suggesting weaker core demand for its products.
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, it’s free.
What Is The Market Telling Us
Allegion’s shares are not very volatile and have only had 3 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 2 months ago when the stock dropped 7.7% on the news that the company reported fourth-quarter earnings that missed Wall Street estimates and issued a weaker-than-expected forecast for the full year 2026.
For the quarter, Allegion's revenue of $1.03 billion was in line with expectations. However, its adjusted earnings of $1.94 per share fell short of the consensus forecast. The company's financial guidance for the upcoming year also disappointed investors. Allegion projected its full-year 2026 adjusted earnings per share to be in the range of $8.70 to $8.90. The midpoint of this range was below the prevailing analyst estimate, signaling a more cautious outlook than the market had anticipated.
Allegion is down 15% since the beginning of the year, and at $136.70 per share, it is trading 24% below its 52-week high of $179.77 from February 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Allegion’s shares 5 years ago would now be looking at an investment worth $1,001.
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Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
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- Allegion plc Q1 2026 Earnings Call Summary
Apr 28, 2026
Allegion plc Q1 2026 Earnings Call Summary - Moby
Operational Performance and Strategic Drivers
Americas nonresidential growth was driven by price realization and healthy demand, while residential markets remained soft due to volume declines. International segment performance was significantly hampered by an ERP implementation in a legacy mechanical business, causing production delays and margin contraction. The acquisition of DCI enhances West Coast competitiveness by providing custom design and quick-ship capabilities, reducing lead times and freight costs compared to East Coast shipping. Management attributes the International margin decline primarily to operational inefficiencies from the ERP transition rather than a shift in underlying market demand. Electronics revenue continues to serve as a long-term growth driver, though growth moderated to mid-single digits compared to the prior year's double-digit performance. Capital deployment remains focused on a balanced approach, including the authorization of a new $500 million share repurchase program and strategic bolt-on M&A.
Outlook and Strategic Assumptions
Management expects to recover the Q1 International production shortfall over the remainder of the year, supported by existing order backlogs. Guidance assumes an incremental 1% COGS headwind from tariffs and fuel inflation, which the company plans to offset through price and cost actions. The 2026 revenue outlook was raised to 6% to 8% solely to reflect the inclusion of the DCI acquisition, while organic growth targets remain unchanged. Margin expansion is expected to be back-half weighted as the company laps prior-year foreign currency benefits and integrates lower-margin acquisitions. Management anticipates that electronics adoption rates will continue to outpace mechanical growth over the full fiscal year.
Risk Factors and Structural Impacts
The DCI acquisition is expected to be a 30-basis-point headwind to full-year margin rates due to its current low double-digit EBITDA profile. A $3 million prior-year benefit from the Mexican peso created a difficult year-over-year comparison for Americas operating margins in Q1. Trade policy volatility, including Section 232 and 301 changes, is cited as a primary driver of the anticipated 1% COGS inflationary headwind. Exposure to Middle East conflicts is characterized as negligible, with no notable demand impact observed from regional tensions.
Q&A Session Highlights
Spec-to-order timelines and data center market dynamics
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Management reported that specification activity is very strong and broad-based, with no meaningful elongation in the timeline from spec to project start. Data centers are not 'crowding out' other projects in Allegion's space; rather, they represent a small but growing niche where the company is carving out a competitive position.
ERP implementation failure and recovery timeline in Europe
The disruption was limited to one legacy business with highly customized workflows; production rates have recently begun to improve. Management expressed confidence in retaining orders, stating that customers have not migrated to competitors despite the delivery delays.
Pricing strategy for incremental tariff and inflation headwinds
New pricing actions or surcharges are not yet in the market, which is why organic revenue guidance was not raised despite the expected inflation offset. The company intends to manage these headwinds to be neutral to adjusted operating income dollars and earnings per share.
Product mix shifts within the Americas nonresidential segment
The Q1 margin headwind from mix was attributed to internal product line variances rather than customers trading down to value-oriented brands. Management expects mix impacts to even out over the full year, with no projected headwind to Americas margin rates for the total fiscal year.
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