John Stone, President and CEO of Allegion (ALLE), recently bought 7,500 shares. The buy increased his stake by 7%, and came to a total cost of $1,055,246.
Stone was the most recent buyer with a 5,000 share pickup in July, totaling just under $675,000. Otherwise, three SVPs were sellers of shares over the past few months, following the exercise of stock options. Over the past two years, insiders have mostly been sellers of shares.
Overall, Allegion insiders own 0.2% of shares.
The manufacturer of hardware and electronic locks and other security mechanisms is up 34% over the past year, about in-line with the S&P 500 index.
Allegion has seen some growth, with earnings up 12%, and revenues rising by 5%. And the company sports a 15% profit margin, a healthy level for a manufacturing business. Shares trade at a reasonable 18 times earnings.
Action to take: Shares have been trending higher over the past year, and have pulled back modestly from highs in October. Long-term investors may like the stock at current prices for a further uptrend in 2025.
Plus, at today’s prices, Allegion pays a 1.4% dividend.
For traders, with shares in an uptrend, call options should deliver leveraged profits from a continued rally. The March 2025 $150 calls, last trading for about $3.70, could see mid-double-digit returns from a slight move higher in shares over the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.