Allegion plc ALLE is poised to benefit from robust end-market demand and effective pricing in the near term despite labor, material and freight-related cost inflation. ALLE anticipates revenues to increase 13-14% year over year for 2022, with organic growth of 9-10%. Its adjusted earnings per share are anticipated to be $5.40-$5.50 in 2022, higher than $5.19 recorded in 2021.
Allegion has been strengthening and expanding its businesses through asset additions for a while. ALLE inked a deal to acquire Plano Group through one of its subsidiaries in November 2022. The acquisition will expand ALLE’s Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. Also, the buyout of Stanley Black & Decker, Inc.’s Access Technologies Business enhanced ALLE’s access, egress and access control solutions offering. The addition of certain assets of Astrum Benelux B.V. and WorkforceIT B.V. (July 2021) boosted ALLE’s Interflex unit’s cloud and mobile solutions along with its software-as-a-service capabilities.
ALLE’s measures to reward its shareholders through dividend payments and share buybacks are encouraging. During the first nine months of 2022, Allegion paid out dividends worth $107.9 million and repurchased shares of $61 million. Its board of directors also announced a 14% hike in its quarterly dividend rate in February 2022.
Allegion PLC Price
Allegion PLC price | Allegion PLC Quote
In light of the above-mentioned positives, we believe, investors should hold on to the Allegion stock for now, as is suggested by its current Zacks Rank #3 (Hold).
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