Alarm.com Holdings, Inc. (NASDAQ:ALRM) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Brokerages have a consensus recommendation of "Hold" on Alarm.com (1 sell, 4 hold, 1 strong buy) with an average 12‑month price target of $57.00, and several firms recently trimmed targets (JPMorgan to $40, Barclays to $50).
• Alarm.com beat last quarter's expectations with EPS $0.72 (vs. $0.66 est.) and revenue of $261.66M (vs. $250.75M est.), and issued FY2026 guidance of 2.780–2.790 EPS.
• CFO Kevin Christopher Bradley sold 1,510 shares at about $45.97; insiders own 5.8% of the company while institutional investors hold roughly 91.74%.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) has been assigned a consensus recommendation of "Hold" from the six brokerages that are covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $57.00.

A number of research analysts have recently issued reports on the stock. JPMorgan Chase & Co. cut their target price on shares of Alarm.com from $55.00 to $40.00 and set an "underweight" rating for the company in a research note on Wednesday, February 18th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Alarm.com in a research note on Tuesday, January 27th. Zacks Research cut shares of Alarm.com from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 25th. Finally, Barclays cut their target price on shares of Alarm.com from $56.00 to $50.00 and set an "equal weight" rating for the company in a research note on Friday, February 20th.

Insider Activity

In related news, CFO Kevin Christopher Bradley sold 1,510 shares of the business's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $45.97, for a total value of $69,414.70. Following the completion of the transaction, the chief financial officer owned 51,546 shares in the company, valued at $2,369,569.62. The trade was a 2.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 5.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ALRM. Optiver Holding B.V. bought a new position in Alarm.com in the 3rd quarter worth approximately $25,000. Strengthening Families & Communities LLC bought a new position in Alarm.com in the 3rd quarter worth approximately $27,000. Covestor Ltd raised its position in Alarm.com by 67.3% in the 4th quarter. Covestor Ltd now owns 691 shares of the software maker's stock worth $35,000 after purchasing an additional 278 shares during the last quarter. Hantz Financial Services Inc. raised its position in Alarm.com by 2,637.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 794 shares of the software maker's stock worth $42,000 after purchasing an additional 765 shares during the last quarter. Finally, Pilgrim Partners Asia Pte Ltd bought a new position in Alarm.com in the 3rd quarter worth approximately $46,000. Institutional investors own 91.74% of the company's stock.

Alarm.com Stock Up 0.6%

Shares of ALRM opened at $44.69 on Thursday. Alarm.com has a 12 month low of $41.50 and a 12 month high of $60.76. The company has a 50-day moving average price of $46.21 and a two-hundred day moving average price of $49.39. The company has a quick ratio of 1.78, a current ratio of 1.92 and a debt-to-equity ratio of 0.58. The stock has a market cap of $2.22 billion, a price-to-earnings ratio of 18.17, a P/E/G ratio of 1.53 and a beta of 0.83.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.66 by $0.06. Alarm.com had a net margin of 13.11% and a return on equity of 14.79%. The company had revenue of $261.66 million during the quarter, compared to analysts' expectations of $250.75 million. During the same quarter in the previous year, the company posted $0.58 earnings per share. Alarm.com's quarterly 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 analysts predict that Alarm.com will post 1.64 EPS for the current fiscal year.

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.

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