CARR - Why Allegion Stock Zoomed 5% Higher Today
2023-12-08 18:52:17 ET
Investors felt secure enough about security-products specialist Allegion (NYSE: ALLE) to push its share price up by 5% on Friday. This had little to do with the company directly; rather, a major acquisition in the security space was the main impetus for the price lift. The resulting pop bettered the performance of the S&P 500 index on the day -- it rose by 0.3%.
It's always news when storied industrial conglomerate Honeywell International (NASDAQ: HON) makes a big-ticket buy. That was the case on Friday, when the company announced it had agreed to pay $4.95 billion in cash for Carrier Global 's (NYSE: CARR) global access solutions business (essentially, its property security unit).
What caught the market's eye about the deal was that it carried Carrier's share price nearly 5% higher. Again, that's just for one unit of the company. Investors clearly believe Allegion has the potential to command a premium too, either piece by piece or in its entirety.
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Why Allegion Stock Zoomed 5% Higher Today