Alarm.com (NASDAQ:ALRM) Share Price Crosses Above 50 Day Moving Average – Should You Sell?

Alarm.com Holdings, Inc. (NASDAQ:ALRM)’s stock price passed above its 50 day moving average during trading on Thursday . The stock has a 50 day moving average of $55.16 and traded as high as $55.79. Alarm.com shares last traded at $54.25, with a volume of 478,599 shares.

Analyst Ratings Changes

Several brokerages have issued reports on ALRM. Weiss Ratings raised Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Barclays boosted their price target on Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a research report on Monday, August 10th. Zacks Research upgraded Alarm.com from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 19th. Raymond James Financial reaffirmed a “strong-buy” rating and set a $65.00 price objective on shares of Alarm.com in a research report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a report on Sunday, August 16th. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Alarm.com has a consensus rating of “Moderate Buy” and an average price target of $55.00.

Alarm.com Stock Down 0.5%

The company’s fifty day simple moving average is $55.20 and its 200-day simple moving average is $48.95. The firm has a market capitalization of $2.67 billion, a PE ratio of 23.88, a price-to-earnings-growth ratio of 1.72 and a beta of 0.76. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.96 and a quick ratio of 4.38.

Alarm.com (NASDAQ:ALRM) last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, beating the consensus estimate of $0.65 by $0.12. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%.The firm had revenue of $277.73 million during the quarter, compared to analyst estimates of $264.96 million. During the same quarter in the prior year, the business posted $0.60 EPS. The business’s revenue for the quarter 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, analysts forecast that Alarm.com Holdings, Inc. will post 2.47 EPS for the current year.

Insider Activity

In other news, CFO Kevin Bradley sold 5,400 shares of the business’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total transaction of $297,378.00. Following the sale, the chief financial officer owned 78,222 shares in the company, valued at approximately $4,307,685.54. The trade was a 6.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 transaction, the chief executive officer owned 324,842 shares in the company, valued at approximately $18,733,638.14. This trade represents a 13.34% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 56,124 shares of company stock valued at $3,215,963. Corporate insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On Alarm.com

Several institutional investors and hedge funds have recently made changes to their positions in ALRM. Integrated Wealth Concepts LLC purchased a new position in shares of Alarm.com in the second quarter worth about $28,000. Allworth Financial LP boosted its position in Alarm.com by 435.5% in the second quarter. Allworth Financial LP now owns 980 shares of the software maker’s stock valued at $46,000 after buying an additional 797 shares during the last quarter. Nykredit A S acquired a new position in Alarm.com in the 2nd quarter worth approximately $129,000. Corient Private Wealth LP acquired a new position in Alarm.com in the 2nd quarter worth approximately $214,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Alarm.com during the 2nd quarter worth approximately $234,000. 91.74% of the stock is currently owned by institutional investors and hedge funds.

Alarm.com Company Profile

Alarm.com Holdings, Inc (NASDAQ: ALRM) provides cloud-based connected property solutions for residential and commercial customers. Its platform is designed to help service providers deliver security, automation, video monitoring and related services through connected devices and software.

The company’s offerings include intrusion detection, smart-home automation, video surveillance and analytics, access control, energy management, and solutions for commercial properties. Alarm.com generally distributes its products and services through a network of authorized service providers, dealers and integrators rather than selling directly to most end users.

Founded in 2000 and headquartered in Vienna, Virginia, Alarm.com serves customers in the United States and internationally.