Alarm.com (NASDAQ:ALRM) Stock Rating Cut to Strong Sell at Zacks Research

Zacks Research lowered shares of Alarm.com (NASDAQ:ALRM) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday,Zacks reports.

Other equities research analysts have also recently issued research reports about the company. Barclays boosted their price target on Alarm.com from $60.00 to $70.00 and gave the company an “equal weight” rating in a research note on Friday, November 6th. William Blair reiterated a “market perform” rating on shares of Alarm.com in a research note on Friday, November 6th. Wall Street Zen raised shares of Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Weiss Ratings upgraded shares of Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 15th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Alarm.com from $40.00 to $50.00 and gave the company an “underweight” rating in a research note on Friday, October 30th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $61.67.

Alarm.com Stock Performance

Shares of NASDAQ ALRM opened at $66.29 on Tuesday. The company has a 50-day simple moving average of $58.45 and a 200-day simple moving average of $50.73. The company has a debt-to-equity ratio of 0.55, a current ratio of 4.83 and a quick ratio of 4.27. The company has a market cap of $3.25 billion, a PE ratio of 29.20, a price-to-earnings-growth ratio of 2.07 and a beta of 0.70. Alarm.com has a 12 month low of $41.49 and a 12 month high of $69.39.

Alarm.com (NASDAQ:ALRM) last announced its quarterly earnings data on Thursday, November 5th. The software maker reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.75 by $0.15. Alarm.com had a return on equity of 15.92% and a net margin of 10.79%. The business had revenue of $279.44 million during the quarter, compared to the consensus estimate of $265.82 million. During the same quarter in the previous year, the business earned $0.76 earnings per share. The business’s revenue for the quarter was up 9.0% on a year-over-year basis. On average, equities analysts anticipate that Alarm.com will post 2.49 earnings per share for the current year.

Insider Buying and Selling

In related 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 4.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Alarm.com

A number of hedge funds have recently added to or reduced their stakes in the company. Meeder Asset Management Inc. purchased a new position in shares of Alarm.com in the third quarter worth about $32,000. Global Retirement Partners LLC increased its stake in shares of Alarm.com by 165.9% in the third quarter. Global Retirement Partners LLC now owns 5,113 shares of the software maker’s stock worth $279,000 after buying an additional 3,190 shares during the period. Edgestream Partners L.P. bought a new stake in Alarm.com in the 3rd quarter worth $582,000. Intech Investment Management LLC grew its holdings in Alarm.com by 12.4% in the 3rd quarter. Intech Investment Management LLC now owns 12,579 shares of the software maker’s stock worth $685,000 after acquiring an additional 1,386 shares during the last quarter. Finally, Hantz Financial Services Inc. increased its holdings in Alarm.com by 11.1% in the 3rd quarter. Hantz Financial Services Inc. now owns 2,984 shares of the software maker’s stock worth $163,000 after buying an additional 299 shares in the last quarter. Institutional investors and hedge funds own 91.74% of the company’s stock.

Alarm.com Company Profile

Alarm.com Holdings, Inc. develops cloud-based software and connected-device services for residential and commercial security, automation, and energy management. Its platform brings together devices such as security sensors, cameras, locks, thermostats, and access-control systems, which customers can manage through mobile and web applications. The company provides its technology primarily through a network of security and service providers. Its offerings include intrusion detection, video monitoring and analytics, smart-home automation, commercial security and access control, and tools for monitoring and managing energy use.