Zacks Research Downgrades Alarm.com (NASDAQ:ALRM) to Hold

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

A number of other brokerages have also weighed in on ALRM. Barclays lowered their target price on Alarm.com from $56.00 to $50.00 and set an “equal weight” rating on the stock in a research report on Friday, February 20th. JPMorgan Chase & Co. dropped their price objective on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a research note on Wednesday, February 18th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Alarm.com in a report on Tuesday, January 27th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Alarm.com has an average rating of “Hold” and a consensus price target of $57.00.

Alarm.com Price Performance

ALRM stock opened at $43.21 on Wednesday. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.92 and a quick ratio of 1.78. The company’s 50-day moving average is $47.31 and its 200-day moving average is $50.19. The stock has a market capitalization of $2.15 billion, a PE ratio of 17.57, a price-to-earnings-growth ratio of 1.50 and a beta of 0.80. Alarm.com has a 1 year low of $42.26 and a 1 year high of $60.76.

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

Insider Transactions at Alarm.com

In related news, CFO Kevin Christopher Bradley sold 1,510 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total value of $69,414.70. Following the completion of the sale, the chief financial officer directly owned 51,546 shares of the company’s stock, valued at approximately $2,369,569.62. This represents a 2.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 5.80% of the company’s stock.

Institutional Trading of Alarm.com

Several institutional investors and hedge funds have recently made changes to their positions in ALRM. Virtu Financial LLC purchased a new position in Alarm.com during the fourth quarter worth about $264,000. Invesco Ltd. lifted its position 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 buying an additional 19,228 shares in the last quarter. EP Wealth Advisors LLC purchased a new position in shares of Alarm.com in the 4th quarter worth approximately $241,000. Mackenzie Financial Corp grew its holdings 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 acquiring an additional 10,727 shares in the last quarter. Finally, NewEdge Advisors LLC grew its holdings in shares of Alarm.com by 960.9% in the fourth quarter. NewEdge Advisors LLC now owns 14,174 shares of the software maker’s stock valued at $723,000 after acquiring an additional 12,838 shares in the last quarter. Hedge funds and other institutional investors own 91.74% of the company’s stock.

Alarm.com Company Profile

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.