Alarm.com (NASDAQ:ALRM) Updates FY 2026 Earnings Guidance

Alarm.com (NASDAQ:ALRM) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 2.920-2.940 for the period, compared to the consensus estimate of 2.690. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

Alarm.com Stock Performance

Shares of ALRM opened at $56.29 on Friday. Alarm.com has a 1 year low of $41.49 and a 1 year high of $59.53. The company’s 50 day simple moving average is $49.28 and its 200 day simple moving average is $47.05. The company has a market capitalization of $2.78 billion, a price-to-earnings ratio of 23.36, a PEG ratio of 1.90 and a beta of 0.76. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.55 and a current ratio of 5.16.

Alarm.com (NASDAQ:ALRM) last posted its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.12. The business had revenue of $277.73 million for the quarter, compared to analysts’ expectations of $264.96 million. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.The business’s revenue was up 9.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, sell-side analysts predict that Alarm.com will post 2.34 EPS for the current year.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Wall Street Zen upgraded Alarm.com from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Barclays raised their target price on shares of Alarm.com from $50.00 to $55.00 and gave the stock an “equal weight” rating in a research report on Friday, May 8th. Finally, Weiss Ratings upgraded shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $47.50.

Insider Transactions at Alarm.com

In other news, insider Daniel Ramos sold 2,000 shares of the firm’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $46.50, for a total value of $93,000.00. Following the transaction, the insider directly owned 53,099 shares in the company, valued at $2,469,103.50. This trade represents a 3.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Daniel Kerzner sold 3,944 shares of Alarm.com stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $172,668.32. Following the completion of the transaction, the insider directly owned 101,141 shares in the company, valued at $4,427,952.98. This represents a 3.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 31,893 shares of company stock valued at $1,428,505. Insiders own 4.80% of the company’s stock.

Institutional Trading of Alarm.com

A number of institutional investors have recently added to or reduced their stakes in ALRM. California State Teachers Retirement System grew its holdings in Alarm.com by 0.5% during the second quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker’s stock valued at $2,449,000 after purchasing an additional 226 shares during the last quarter. Stifel Financial Corp boosted its holdings in shares of Alarm.com by 1.8% during the 4th quarter. Stifel Financial Corp now owns 14,176 shares of the software maker’s stock worth $723,000 after buying an additional 254 shares during the period. Inspire Investing LLC boosted its holdings in shares of Alarm.com by 6.7% during the 4th quarter. Inspire Investing LLC now owns 9,125 shares of the software maker’s stock worth $466,000 after buying an additional 573 shares during the period. Captrust Financial Advisors grew its stake in Alarm.com by 2.6% in the 4th quarter. Captrust Financial Advisors now owns 23,910 shares of the software maker’s stock valued at $1,220,000 after buying an additional 600 shares during the last quarter. Finally, Alps Advisors Inc. grew its stake in Alarm.com by 4.4% in the 4th quarter. Alps Advisors Inc. now owns 16,077 shares of the software maker’s stock valued at $820,000 after buying an additional 678 shares during the last quarter. 91.74% of the stock is owned by hedge funds and other institutional investors.

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.