Alarm.com Holdings, Inc. (NASDAQ:ALRM) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give Alarm.com a consensus rating of Moderate Buy from six brokerages (1 sell, 3 hold, 2 strong buy) with an average 12‑month price target of $57, although recent notes include JPMorgan cutting its target to $40 (underweight) and Barclays to $50.
• Alarm.com beat Q4 estimates with EPS of $0.72 versus $0.66 and revenue of $261.66M versus $250.75M (revenue +8.1% YoY), and set FY2026 guidance of 2.780–2.790 EPS.
• Shares trade around $46.60 with a market cap of $2.31B, a P/E of 18.94 and a 12‑month range of $43–$60.76; institutional investors own ~91.7% of the stock and an insider sold 22,727 shares in December.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) has been given a consensus rating of "Moderate Buy" by the six brokerages that are presently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and two have issued a strong buy rating on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $57.00.

Several brokerages recently weighed in on ALRM. Zacks Research raised shares of Alarm.com from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. Barclays dropped their price target 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. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Alarm.com in a research report on Tuesday, January 27th. Finally, JPMorgan Chase & Co. reduced their price objective on Alarm.com from $55.00 to $40.00 and set an "underweight" rating on the stock in a research note on Wednesday, February 18th.

Alarm.com Stock Performance

Shares of Alarm.com stock opened at $46.60 on Friday. The stock has a market capitalization of $2.31 billion, a price-to-earnings ratio of 18.94, a price-to-earnings-growth ratio of 1.63 and a beta of 0.80. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.92 and a quick ratio of 1.78. The business has a 50-day moving average of $48.52 and a 200 day moving average of $50.96. Alarm.com has a 12 month low of $43.00 and a 12 month high of $60.76.

Alarm.com (NASDAQ:ALRM - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $250.75 million. During the same period in the prior year, the firm earned $0.58 earnings per share. The business's revenue for the quarter 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. As a group, sell-side analysts forecast that Alarm.com will post 1.64 earnings per share for the current year.

Insider Transactions at Alarm.com

In other news, insider Jeffrey A. Bedell sold 22,727 shares of Alarm.com stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $51.82, for a total value of $1,177,713.14. Following the completion of the transaction, the insider owned 505,805 shares in the company, valued at approximately $26,210,815.10. This trade represents a 4.30% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 5.80% of the stock is owned by corporate insiders.

Institutional Trading of Alarm.com

Hedge funds have recently added to or reduced their stakes in the company. Arizona State Retirement System grew its holdings in Alarm.com by 1.5% during the 3rd quarter. Arizona State Retirement System now owns 13,975 shares of the software maker's stock worth $742,000 after acquiring an additional 210 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of Alarm.com by 0.5% in the 2nd 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 in the last quarter. Cresset Asset Management LLC raised its holdings in shares of Alarm.com by 0.6% in the 3rd quarter. Cresset Asset Management LLC now owns 40,234 shares of the software maker's stock valued at $2,136,000 after purchasing an additional 228 shares in the last quarter. Oppenheimer Asset Management Inc. lifted its position in shares of Alarm.com by 0.7% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 37,063 shares of the software maker's stock worth $1,967,000 after purchasing an additional 246 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of Alarm.com by 22.4% during the 4th quarter. GAMMA Investing LLC now owns 1,361 shares of the software maker's stock worth $69,000 after purchasing an additional 249 shares during the last quarter. Institutional investors and hedge funds own 91.74% of the company's stock.

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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