Alarm.com (NASDAQ:ALRM) Rating Lowered to "Hold" at Zacks Research

Key Points

• Alarm.com has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, reflecting a shift in analyst sentiment regarding the stock.
• Weiss Ratings also reaffirmed a "hold (c)" rating, with an overall average rating of "Hold" and a consensus target price of $62.60 for Alarm.com shares.
• Despite the rating changes, Alarm.com showed positive performance with a revenue increase of 8.8% year-over-year, reporting $254.31 million in revenue for the latest quarter.

Alarm.com (NASDAQ:ALRM - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Alarm.com in a research report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $62.60.

Alarm.com Trading Up 1.3%

NASDAQ:ALRM opened at $50.12 on Monday. The stock's 50 day moving average price is $55.03 and its 200 day moving average price is $55.30. Alarm.com has a 52 week low of $48.23 and a 52 week high of $70.06. The company has a market capitalization of $2.50 billion, a P/E ratio of 21.06, a P/E/G ratio of 2.46 and a beta of 1.04. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.82 and a current ratio of 1.95.

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Bessemer Group Inc. raised its stake in shares of Alarm.com by 304.6% in the first quarter. Bessemer Group Inc. now owns 708 shares of the software maker's stock valued at $39,000 after purchasing an additional 533 shares in the last quarter. Elevation Point Wealth Partners LLC acquired a new position in shares of Alarm.com in the second quarter valued at $43,000. Larson Financial Group LLC raised its stake in shares of Alarm.com by 235.5% in the first quarter. Larson Financial Group LLC now owns 916 shares of the software maker's stock valued at $51,000 after purchasing an additional 643 shares in the last quarter. Strs Ohio acquired a new position in shares of Alarm.com in the first quarter valued at $56,000. Finally, Atlantic Union Bankshares Corp acquired a new position in shares of Alarm.com in the second quarter valued at $57,000. 91.74% of the stock is currently owned by institutional investors and hedge funds.

About Alarm.com

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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