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

Key Points

• Brokerages have given Alarm.com Holdings, Inc. (NASDAQ:ALRM) an average recommendation of "Moderate Buy", with a diverse range of ratings including one sell, two hold, two buy, and two strong buy ratings.
• The company's stock price opened at $53.08 and has a market cap of $2.65 billion, with a reported earnings per share (EPS) of $0.60 for the last quarter, surpassing analysts' estimates.
• Institutional investors hold a significant portion of the company, with 91.74% of the stock owned by hedge funds and large institutions actively increasing their stakes.

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) have earned an average recommendation of "Moderate Buy" from the seven ratings firms that are covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, two have given a buy rating and two have assigned a strong buy rating to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $64.3333.

Separately, Zacks Research raised Alarm.com from a "hold" rating to a "strong-buy" rating in a research report on Thursday, September 4th.

Alarm.com Stock Up 1.1%

Alarm.com stock opened at $53.08 on Wednesday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.82 and a current ratio of 1.95. The stock has a market cap of $2.65 billion, a PE ratio of 22.30, a price-to-earnings-growth ratio of 2.61 and a beta of 1.07. Alarm.com has a fifty-two week low of $48.23 and a fifty-two week high of $70.06. The firm's 50-day simple moving average is $55.82 and its 200 day simple moving average is $55.73.

Alarm.com (NASDAQ:ALRM - Get Free Report) last announced its earnings results on Thursday, August 7th. The software maker reported $0.60 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.08. The firm had revenue of $254.31 million for the quarter, compared to the consensus estimate of $243.96 million. Alarm.com had a return on equity of 13.84% and a net margin of 13.27%.The company's revenue was up 8.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.58 EPS. Alarm.com has set its FY 2025 guidance at 2.400-2.400 EPS. Research analysts predict that Alarm.com will post 1.64 EPS for the current fiscal year.

Institutional Trading of Alarm.com

A number of large investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new stake in shares of Alarm.com in the second quarter valued at $33,459,000. Nuveen LLC bought a new position in shares of Alarm.com during the 1st quarter worth $21,584,000. Public Sector Pension Investment Board increased its holdings in Alarm.com by 152.1% in the 1st quarter. Public Sector Pension Investment Board now owns 310,588 shares of the software maker's stock worth $17,284,000 after acquiring an additional 187,398 shares during the last quarter. Burgundy Asset Management Ltd. raised its stake in Alarm.com by 26.3% in the 1st quarter. Burgundy Asset Management Ltd. now owns 882,351 shares of the software maker's stock valued at $49,103,000 after acquiring an additional 183,503 shares during the period. Finally, Select Equity Group L.P. lifted its holdings in Alarm.com by 587.4% during the first quarter. Select Equity Group L.P. now owns 200,434 shares of the software maker's stock valued at $11,154,000 after purchasing an additional 171,274 shares during the last quarter. Hedge funds and other institutional investors own 91.74% of the company's stock.

Alarm.com Company Profile

Alarm.com Holdings, Inc provides various Internet of Things (IoT) and solutions for residential, multi-family, small business, and enterprise commercial markets in North America and internationally. The company operates through two segments, Alarm.com and Other. It offers solutions to control and monitor security systems, as well as to IoT devices, including door locks, garage doors, thermostats, and video cameras; and video monitoring and analytics solutions, such as video analytics, escalated events, video doorbells, intelligent integration, live streaming, secure cloud storage, and video alerts.

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