Alarm.com (NASDAQ:ALRM) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Alarm.com from “hold” to “strong buy.” The stock has a consensus “moderate buy” rating and an average analyst price target of $55.
• Alarm.com reported quarterly EPS of $0.77, exceeding the $0.65 consensus estimate, while revenue rose 9.2% year over year to $277.73 million.
• Shares opened at $57.06, near their 12-month high of $59.53. Institutional investors own approximately 91.74% of the company, while insiders sold about $1.45 million of stock over the past 90 days.

Alarm.com (NASDAQ:ALRM - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Wednesday,Zacks.com reports.

Several other equities analysts have also weighed in on ALRM. Weiss Ratings upgraded shares of Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, July 29th. Wall Street Zen upgraded shares of Alarm.com from a "hold" rating to a "buy" rating in a research note on Sunday, August 16th. Raymond James Financial reissued a "strong-buy" rating and set a $65.00 target price on shares of Alarm.com in a research report on Friday, August 7th. Finally, Barclays upped their price objective on Alarm.com from $55.00 to $60.00 and gave the company an "equal weight" rating in a research note on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $55.00.

Alarm.com Price Performance

Shares of NASDAQ:ALRM opened at $57.06 on Wednesday. The company has a quick ratio of 4.38, a current ratio of 4.96 and a debt-to-equity ratio of 0.57. Alarm.com has a twelve month low of $41.49 and a twelve month high of $59.53. The stock's 50 day moving average is $51.42 and its 200-day moving average is $47.54. The firm has a market capitalization of $2.82 billion, a price-to-earnings ratio of 25.25, a PEG ratio of 1.82 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM - Get Free Report) last announced its quarterly 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. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The business had revenue of $277.73 million for the quarter, compared to analysts' expectations of $264.96 million. During the same quarter last year, the firm earned $0.60 EPS. The firm's revenue for the quarter was up 9.2% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. Sell-side analysts forecast that Alarm.com will post 2.47 EPS for the current fiscal year.

Insider Activity at Alarm.com

In related news, insider Daniel Ramos sold 8,000 shares of the company's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $46.23, for a total value of $369,840.00. Following the completion of the transaction, the insider directly owned 55,099 shares in the company, valued at approximately $2,547,226.77. The trade was a 12.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Stephen Trundle sold 6,073 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $265,875.94. Following the completion of the transaction, the chief executive officer directly owned 324,842 shares in the company, valued at approximately $14,221,582.76. This represents a 1.84% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 30,873 shares of company stock worth $1,446,228 in the last 90 days. 4.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alarm.com

A number of hedge funds and other institutional investors have recently modified their holdings of ALRM. California State Teachers Retirement System lifted its stake in Alarm.com by 0.5% in the second quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker's stock worth $2,449,000 after acquiring an additional 226 shares during the period. Stifel Financial Corp increased its position in Alarm.com by 1.8% during the 4th quarter. Stifel Financial Corp now owns 14,176 shares of the software maker's stock valued at $723,000 after purchasing an additional 254 shares during the period. ProShare Advisors LLC raised its holdings in Alarm.com by 3.0% in the 4th quarter. ProShare Advisors LLC now owns 9,284 shares of the software maker's stock worth $474,000 after purchasing an additional 269 shares in the last quarter. Covestor Ltd raised its holdings 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 in the last quarter. Finally, Pacer Advisors Inc. lifted its position in shares of Alarm.com by 21.2% in the 1st quarter. Pacer Advisors Inc. now owns 2,312 shares of the software maker's stock worth $100,000 after purchasing an additional 404 shares during the period. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

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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