Insider Selling: Jeffrey N Braun Unloads $271K Of Allegion Stock

Disclosed on March 12, Jeffrey N Braun, SVP at Allegion ALLE, executed a substantial insider sell as per the latest SEC filing.

What Happened: Braun’s decision to sell 2,018 shares of Allegion was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $271,787.

Tracking the Thursday’s morning session, Allegion shares are trading at $125.1, showing a up of 0.94%.

Delving into Allegion’s Background

Allegion is a global security products company with a portfolio of leading brands such as Schlage, Von Duprin, and LCN. The Ireland-domiciled company was created via a spinoff transaction from Ingersoll-Rand in December 2013. In fiscal 2024, Allegion generated over 75% of sales in the United States. The company primarily competes with Sweden-based Assa Abloy, Switzerland-based Dormakaba, and US-based Fortune Brands Innovations.

Allegion: A Financial Overview

Positive Revenue Trend: Examining Allegion’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.37% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 44.07%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.66, Allegion showcases strong earnings per share.

Debt Management: Allegion’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.33. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 18.17, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.88 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Allegion’s EV/EBITDA ratio at 13.25 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Allegion’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.