On July 25, 2025, Tracy L Kemp, SVP-Chief Info. & Digital Officer, executed an open-market sale of 3,849 shares of Allegion plc(ALLE -0.59%).
Transaction summary
| Metric | Value |
|---|---|
| Shares Traded | 3,849 |
| Transaction Value | $634,800 |
| Post-Transaction Shares | 8,773 |
| Post-Transaction Value | $1,446,843 |
| 1-year performance | 24.5% |
Transaction and post-transaction values based on 2025-07-02 market close price of $164.92.
Key questions
What is the significance of a full equity exit by Tracy Kemp at this time?
This transaction reduces Tracy L Kemp's direct ownership stake in Allegion plc to zero, marking a departure from previous patterns of partial reductions and representing a complete divestiture of equity exposure as of July 25, 2025.
How does the size and timing of this transaction compare to the insider's historical activity?
The 3,849-share sale exceeds the historical median transaction size (~1,083 shares) for this insider, and continues a recent trend of larger sell transactions, with the last reported trade occurring 139 days prior.
How does Allegion plc's recent share price performance contextualize this sale?
Allegion plc shares have appreciated 24.5% over the past year, with the sale executed near recent highs, with the stock priced at $164.92.
Does this transaction align with the insider's prior trading cadence?
The timing and scale of this sale are consistent with a pattern of accelerating reductions in recent years, as observed from 2023-02-10 to 2025-07-29. Tracy L Kemp's annual net share disposals have increased (2023: 2,129 shares; 2024: 9,040 shares; 2025: 12,782 shares, calendar year basis).
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $14.18 billion |
| Revenue (TTM) | $3.88 billion |
| Net income (TTM) | $626.20 million |
| Dividend yield | 1.47% |
Company snapshot
Manufactures and sells mechanical and electronic security products, including door closers, locks, access control systems, and workforce productivity systems under brands such as Schlage, CISA, and Von Duprin. It generates revenue through product sales and related services distributed via specialty distributors, wholesalers, e-commerce, and retail channels.
It serves commercial, institutional, and residential customers, focusing on sectors such as education, healthcare, government, hospitality, and multi-family housing.
Allegion plc operates at a global scale, leveraging a diversified product portfolio in security and access control solutions. The company manufactures and sells both mechanical and electronic security products, serving a broad range of end markets. It is known for its strong brands and extensive distribution network.
Foolish take
Allegion Senior Vice President Tracy Kemp recently elected to exercise a stock option and then sold a total of 3,849 shares in company stock in the open market over multiple transactions, at a weighted market price of almost $165 per share. It's a significant transaction that leaves her holding just shy of $1.5 million worth of stock.
Kemp sold at close to an all-time high for the stock after the company reported an impressive set of second-quarter earnings. Allegion has long been appreciated as a stock to play the convergence of mechanics and electronics in security products (locks, doors, and accessories), and it has a long pathway of secular growth ahead of it. That said, its Americas residential business is suffering from the housing market slowdown, and its international operations also suffered volume declines in the second quarter.
The real strength in the company right now is its Americas non-residential business, whose high-single digit growth dragged the company into an overall combination of volume and price growth in the second quarter.
Time will tell whether Kemp's sale portends a slowdown in that market, but note that management raised its full-year organic growth guidance to a new range of 3.5%-4.5% from 1.5%-3.5% previously, and its adjusted earnings per share guidance to $8-$8.25 from $7.65-$7.85 previously—something to keep an eye out for.
Glossary
Open-market sale: A transaction where shares are sold on a public exchange, not through a private or pre-arranged deal.
Equity ownership: The value of shares an individual or entity holds in a company, representing partial ownership.
Divestiture: The process of selling off an asset or business interest, such as shares in a company.
Insider: A company executive, director, or major shareholder with access to material, non-public information.
Insider trading: Buying or selling a company's securities by someone with access to confidential company information.
Trading cadence: The typical frequency and pattern with which an insider buys or sells shares.
Median transaction size: The middle value of all transaction sizes in a data set, used to show typical activity.
Calendar year basis: Measuring data or performance from January 1 to December 31 of the same year.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Distribution network: The system of channels a company uses to deliver products to customers.
Access control systems: Electronic or mechanical systems that manage entry to buildings or rooms.
TTM: The 12-month period ending with the most recent quarterly report.
