Why Allegion Stock Is Up 5% Today

Investors felt sufficiently safe with a company specializing in security products. Allegion (to 5.00%) They decided to raise the stock price by 5% on Friday. This has little to do with the company directly. Rather, large acquisitions in the security space have been the main driver of price increases. As a result, Pop improves the performance of: S&P 500 On this day, the index rose 0.3%.

Honeywell’s $4.95 billion Carrier deal has investors intrigued.

Stories about industrial giants are always news. Honeywell International (soul -1.61%) Make a big purchase. That’s the case when the company announced Friday that it had agreed to pay $4.95 billion in cash. carrier global‘S (card 4.50%) Our Global Access Solutions business (essentially our Asset Security division).

What caught the market’s attention about this transaction was that Carrier’s stock price rose almost 5%. Again, this only applies to one unit of the company. Investors clearly believe Allegion has the potential to command a premium, either in part or in full.

In a press release about the agreement, Honeywell said the primary reason for the engineering is that it will “strengthen Honeywell Building Technologies’ business model as a leader in high-value products essential to buildings.” This description could easily be applied to Allegion’s products as well.

Could Allegion be an acquisition target?

Allegion hasn’t commented publicly on the Honeywell-Carrier deal, but you can be sure it’s being discussed enthusiastically at the top. Allegion has a market capitalization of nearly $10 billion, so it would not be a cheap company to acquire in its entirety. But perhaps there are deep-pocketed companies willing to expand their security business enough to be willing to pay for those assets. .