Alarm.com (NASDAQ:ALRM) Downgraded by Wall Street Zen to "Hold"

Alarm.com (NASDAQ:ALRM - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings upgraded Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 29th. Barclays lifted their target price on shares of Alarm.com from $50.00 to $55.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. Finally, Raymond James Financial reiterated a "strong-buy" rating and issued a $65.00 price target on shares of Alarm.com in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Alarm.com presently has a consensus rating of "Hold" and a consensus target price of $53.33.

Alarm.com Stock Performance

Shares of ALRM stock opened at $57.53 on Friday. The stock's 50-day moving average is $49.52 and its two-hundred day moving average is $47.13. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.55 and a current ratio of 5.16. Alarm.com has a 1 year low of $41.49 and a 1 year high of $59.53. The firm has a market cap of $2.85 billion, a price-to-earnings ratio of 25.46, a PEG ratio of 1.89 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.12. The business had revenue of $277.73 million during the quarter, compared to the consensus estimate of $264.96 million. Alarm.com had a return on equity of 15.74% and a net margin of 11.11%.The business's quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. Analysts predict that Alarm.com will post 2.34 earnings per share for the current year.

Insider Activity

In related news, insider Daniel Kerzner sold 3,944 shares of Alarm.com stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $172,668.32. Following the transaction, the insider directly owned 101,141 shares in the company, valued at $4,427,952.98. This trade represents a 3.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Daniel Ramos sold 8,000 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $46.23, for a total transaction of $369,840.00. Following the completion of the sale, the insider owned 55,099 shares of the company's stock, valued at $2,547,226.77. This trade represents a 12.68% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 31,893 shares of company stock valued at $1,428,505. Corporate insiders own 4.80% of the company's stock.

Hedge Funds Weigh In On Alarm.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALRM. Covestor Ltd lifted its holdings in shares of Alarm.com by 67.3% in the 4th quarter. Covestor Ltd now owns 691 shares of the software maker's stock valued at $35,000 after buying an additional 278 shares during the period. Financial Management Professionals Inc. acquired a new position in Alarm.com during the fourth quarter worth $47,000. Strs Ohio purchased a new position in Alarm.com in the first quarter worth $56,000. Kemnay Advisory Services Inc. purchased a new position in Alarm.com in the fourth quarter worth $59,000. Finally, Danske Bank A S acquired a new stake in Alarm.com in the fourth quarter valued at $92,000. Institutional investors and hedge funds own 91.74% of the company's stock.

About Alarm.com

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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