Alarm.com (NASDAQ:ALRM) Raised to “Strong-Buy” at Zacks Research

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

A number of other research firms have also issued reports on ALRM. JPMorgan Chase & Co. cut their price target on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a report on Wednesday, February 18th. Barclays cut their target price on shares of Alarm.com from $56.00 to $50.00 and set an “equal weight” rating on the stock in a research note on Friday, February 20th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. Two analysts have rated the stock with a Strong Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Alarm.com presently has a consensus rating of “Moderate Buy” and a consensus price target of $57.00.

Alarm.com Stock Performance

ALRM opened at $47.08 on Tuesday. The company has a quick ratio of 1.78, a current ratio of 1.92 and a debt-to-equity ratio of 0.58. The firm has a market cap of $2.34 billion, a PE ratio of 19.14, a P/E/G ratio of 1.59 and a beta of 0.79. The business has a fifty day simple moving average of $49.26 and a 200-day simple moving average of $51.63. Alarm.com has a fifty-two week low of $43.00 and a fifty-two week high of $60.76.

Alarm.com (NASDAQ:ALRM) last announced its earnings results on Thursday, February 19th. The software maker reported $0.72 EPS for the quarter, beating the consensus estimate of $0.66 by $0.06. The business had revenue of $261.66 million during the quarter, compared to the consensus estimate of $250.75 million. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.Alarm.com’s revenue was up 8.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.58 earnings per share. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. As a group, equities analysts predict that Alarm.com will post 1.64 EPS for the current fiscal year.

Insider Activity at Alarm.com

In related news, insider Jeffrey A. Bedell sold 22,727 shares of Alarm.com stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $51.82, for a total value of $1,177,713.14. Following the completion of the sale, the insider owned 505,805 shares of the company’s stock, valued at approximately $26,210,815.10. The trade was a 4.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen C. Evans sold 1,154 shares of the company’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $52.27, for a total transaction of $60,319.58. Following the completion of the sale, the director owned 6,123 shares of the company’s stock, valued at $320,049.21. This represents a 15.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 26,154 shares of company stock worth $1,357,388. Insiders own 5.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ALRM. Virtu Financial LLC acquired a new stake in Alarm.com during the fourth quarter worth about $264,000. Invesco Ltd. grew its holdings in shares of Alarm.com by 8.6% during the 4th quarter. Invesco Ltd. now owns 243,828 shares of the software maker’s stock worth $12,440,000 after purchasing an additional 19,228 shares in the last quarter. EP Wealth Advisors LLC bought a new stake in shares of Alarm.com during the fourth quarter valued at approximately $241,000. Mackenzie Financial Corp raised its stake in shares of Alarm.com by 34.3% in the fourth quarter. Mackenzie Financial Corp now owns 42,044 shares of the software maker’s stock valued at $2,172,000 after purchasing an additional 10,727 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in Alarm.com by 960.9% in the fourth quarter. NewEdge Advisors LLC now owns 14,174 shares of the software maker’s stock worth $723,000 after purchasing an additional 12,838 shares during the period. 91.74% of the stock is currently owned by institutional investors and hedge funds.

About Alarm.com

Alarm.com Holdings, Inc provides a cloud-based software platform for connected properties, enabling residential and commercial customers to monitor, manage and control security, energy and home automation solutions. The company’s interactive services connect security systems, smart thermostats, door locks, lights and video cameras through cellular, broadband and Z-Wave networks, offering real-time alerts and remote access via mobile and web applications.

Through its platform, Alarm.com delivers an integrated suite of products that includes intrusion detection, video monitoring and cloud recording, energy management features such as smart thermostat scheduling, and home automation controls for lighting, garage doors and connected appliances.