Alarm.com (NASDAQ:ALRM) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Alarm.com (NASDAQ:ALRM) had its price objective hoisted by research analysts at JPMorgan Chase & Co. from $40.00 to $50.00 in a research report issued on Friday, Benzinga reports. The firm presently has an “underweight” rating on the software maker’s stock. JPMorgan Chase & Co.‘s price target indicates a potential downside of 22.91% from the stock’s current price.

Other research analysts have also recently issued reports about the company. Barclays upped their price target on Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a research note on Monday, August 10th. Weiss Ratings raised Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 15th. Raymond James Financial restated a “strong-buy” rating and set a $65.00 price objective on shares of Alarm.com in a research note on Friday, August 7th. Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 6th. Finally, Wall Street Zen raised Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Alarm.com has an average rating of “Hold” and a consensus target price of $58.33.

Alarm.com Stock Down 2.5%

Shares of Alarm.com stock traded down $1.68 during midday trading on Friday, hitting $64.86. The company had a trading volume of 721,458 shares, compared to its average volume of 472,226. The stock has a market capitalization of $3.21 billion, a P/E ratio of 28.70, a P/E/G ratio of 2.06 and a beta of 0.76. The company has a 50 day moving average of $56.85 and a 200 day moving average of $50.03. Alarm.com has a 52-week low of $41.49 and a 52-week high of $67.41. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96.

Alarm.com (NASDAQ:ALRM) last announced its quarterly earnings results on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, topping the consensus estimate 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 analysts’ expectations of $264.96 million. During the same quarter in the previous year, the company earned $0.60 EPS. The business’s quarterly revenue was up 9.2% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities analysts predict that Alarm.com will post 2.47 earnings per share for the current fiscal year.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Alarm.com

Several hedge funds and other institutional investors have recently made changes to their positions in ALRM. Bank of New York Mellon Corp purchased a new stake in shares of Alarm.com during the second quarter worth approximately $14,339,000. Arrowstreet Capital Limited Partnership increased its stake in shares of Alarm.com by 43.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker’s stock worth $33,654,000 after purchasing an additional 237,633 shares in the last quarter. Evanson Financial LLC purchased a new position in shares of Alarm.com during the 2nd quarter worth $7,168,000. Winmill & CO. Inc. acquired a new stake in shares of Alarm.com in the second quarter worth approximately $5,891,000. Finally, American Capital Management Inc. purchased a new stake in Alarm.com during the second quarter valued at about $3,202,000. Hedge funds and other institutional investors own 91.74% of the company’s stock.

Alarm.com Company Profile

Alarm.com Holdings, Inc develops cloud-based technology for connected security and smart automation. Its platform helps residential and commercial customers monitor and manage security systems, video cameras, access control, energy use, and other connected devices through mobile applications and web-based tools.

The company’s products and services are delivered primarily through a network of authorized service providers, including security dealers and integrators. Its offerings include intrusion detection, smart-home automation, video surveillance, commercial security and access management, energy management, and solutions designed for property managers and other business customers.

Founded in 2000 and headquartered in Vienna, Virginia, Alarm.com serves customers through service providers in the United States and international markets.