Alarm.com (NASDAQ:ALRM) Stock Rating Lowered by Zacks Research

Alarm.com (NASDAQ:ALRM) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Several other equities research analysts have also weighed in on the stock. Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a report on Sunday, August 16th. Raymond James Financial restated a “strong-buy” rating and issued a $65.00 price objective on shares of Alarm.com in a research report on Friday, August 7th. Weiss Ratings raised Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. Finally, Barclays lifted their target price on Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $55.00.

Alarm.com Price Performance

Alarm.com stock opened at $54.68 on Tuesday. The firm has a market capitalization of $2.70 billion, a P/E ratio of 24.19, a PEG ratio of 1.78 and a beta of 0.76. Alarm.com has a 1 year low of $41.49 and a 1 year high of $58.15. The business has a 50-day moving average of $55.59 and a 200-day moving average of $49.52. The company has a current ratio of 4.96, a quick ratio of 4.38 and a debt-to-equity ratio of 0.57.

Alarm.com (NASDAQ:ALRM) last announced its quarterly earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share for the quarter, beating analysts’ consensus estimates of $0.65 by $0.12. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The business had revenue of $277.73 million for the quarter, compared to the consensus estimate of $264.96 million. During the same period last year, the company posted $0.60 EPS. Alarm.com’s revenue for the quarter was up 9.2% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities analysts anticipate that Alarm.com will post 2.47 EPS for the current year.

Insider Buying and Selling

In other news, CFO Kevin Bradley sold 5,400 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $55.07, for a total value of $297,378.00. Following the completion of the transaction, the chief financial officer owned 78,222 shares in the company, valued at $4,307,685.54. This represents a 6.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Stephen Trundle sold 50,000 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the sale, the chief executive officer directly owned 324,842 shares of the company’s stock, valued at $18,733,638.14. This represents a 13.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.80% of the company’s stock.

Hedge Funds Weigh In On Alarm.com

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ALRM. Dimensional Fund Advisors LP lifted its holdings in shares of Alarm.com by 1.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,117,359 shares of the software maker’s stock valued at $48,257,000 after purchasing an additional 11,624 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Alarm.com by 43.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker’s stock worth $33,654,000 after buying an additional 237,633 shares in the last quarter. SG Americas Securities LLC raised its position in Alarm.com by 85.3% in the 1st quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker’s stock valued at $20,882,000 after buying an additional 222,563 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in Alarm.com in the 2nd quarter valued at approximately $14,339,000. Finally, Principal Financial Group Inc. lifted its stake in Alarm.com by 5.2% in the 1st quarter. Principal Financial Group Inc. now owns 300,204 shares of the software maker’s stock valued at $12,966,000 after acquiring an additional 14,967 shares in the last quarter. 91.74% of the stock is owned by institutional investors and hedge funds.

About Alarm.com

Alarm.com Holdings, Inc (NASDAQ: ALRM) provides cloud-based solutions for intelligent security, automation and property management. Its platform connects security systems, cameras, access-control equipment, sensors and other smart devices, allowing users to monitor and manage properties through mobile applications and web-based tools.

The company’s offerings include professionally monitored residential and commercial security, video surveillance and analytics, smart home automation, energy management, access control and solutions for multifamily and other property-management applications.