Wall Street Zen Downgrades Alarm.com (NASDAQ:ALRM) to Hold

Alarm.com (NASDAQ:ALRM) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

Several other equities research analysts have also recently weighed in on the company. Raymond James Financial reissued a “strong-buy” rating and issued a $65.00 price objective on shares of Alarm.com in a research report on Friday. Barclays boosted 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 raised shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Alarm.com has a consensus rating of “Hold” and an average target price of $53.33.

Alarm.com Stock Performance

Alarm.com stock opened at $57.53 on Friday. Alarm.com has a 52 week low of $41.49 and a 52 week high of $59.53. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96. The firm has a market capitalization of $2.85 billion, a PE ratio of 25.46, a PEG ratio of 1.93 and a beta of 0.76. The business’s 50-day simple moving average is $49.52 and its 200-day simple moving average is $47.10.

Alarm.com (NASDAQ:ALRM) last released its earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.12. The firm had revenue of $277.73 million for the quarter, compared to analyst estimates of $264.96 million. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%.The company’s revenue was up 9.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. Equities research analysts forecast that Alarm.com will post 2.34 earnings per share for the current year.

Insider Transactions at Alarm.com

In other news, CEO Stephen Trundle sold 6,073 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $43.78, for a total transaction of $265,875.94. Following the sale, the chief executive officer directly owned 324,842 shares in the company, valued at approximately $14,221,582.76. The trade was a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Daniel Kerzner sold 3,944 shares of the business’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $172,668.32. Following the sale, the insider owned 101,141 shares in the company, valued at approximately $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. In the last quarter, insiders sold 31,893 shares of company stock worth $1,428,505. Insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ALRM. Swedbank AB lifted its stake in Alarm.com by 713.1% during the fourth quarter. Swedbank AB now owns 45,316 shares of the software maker’s stock worth $2,312,000 after purchasing an additional 39,743 shares during the period. Vanguard Group Inc. boosted its holdings in Alarm.com by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 6,286,541 shares of the software maker’s stock valued at $320,739,000 after purchasing an additional 53,664 shares in the last quarter. LSV Asset Management grew its stake in shares of Alarm.com by 95.4% in the 4th quarter. LSV Asset Management now owns 119,400 shares of the software maker’s stock valued at $6,092,000 after purchasing an additional 58,300 shares during the period. Louisiana State Employees Retirement System bought a new stake in shares of Alarm.com in the 1st quarter valued at approximately $954,000. Finally, Jackson Creek Investment Advisors LLC grew its stake in shares of Alarm.com by 356.4% in the 4th quarter. Jackson Creek Investment Advisors LLC now owns 33,648 shares of the software maker’s stock valued at $1,717,000 after purchasing an additional 26,276 shares during the period. 91.74% of the stock is owned by institutional investors.

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.