Alarm.com (NASDAQ:ALRM) Updates FY 2025 Earnings Guidance

Key Points

• Alarm.com has outlined its FY 2025 earnings guidance, projecting EPS of $2.40 and revenue between $990 million and $996.4 million, surpassing analyst estimates.
• The company's stock declined by 2.6% to $54.34, with significant trading volume of 457,408 shares compared to its average of 343,603.
• Analysts have recently lowered their price targets for Alarm.com, with estimates now ranging from $58 to $80, indicating a cautious outlook.

Alarm.com (NASDAQ:ALRM - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 2.400-2.400 for the period, compared to the consensus estimate of 2.297. The company issued revenue guidance of $990.0 million-$996.4 million, compared to the consensus revenue estimate of $985.5 million.

Analysts Set New Price Targets

Several equities analysts have recently commented on ALRM shares. The Goldman Sachs Group lowered their target price on Alarm.com from $66.00 to $58.00 and set a "neutral" rating for the company in a report on Thursday, April 17th. Barclays dropped their price target on Alarm.com from $67.00 to $60.00 and set an "equal weight" rating on the stock in a report on Monday, April 14th. Finally, Raymond James Financial cut their target price on shares of Alarm.com from $85.00 to $80.00 and set a "strong-buy" rating on the stock in a research note on Friday, May 9th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $64.33.

Alarm.com Stock Down 1.6%

Shares of NASDAQ:ALRM traded down $0.86 during midday trading on Monday, reaching $53.55. 27,249 shares of the company were exchanged, compared to its average volume of 343,751. Alarm.com has a fifty-two week low of $48.23 and a fifty-two week high of $70.06. The company has a quick ratio of 1.82, a current ratio of 1.95 and a debt-to-equity ratio of 0.61. The stock has a fifty day simple moving average of $56.42 and a two-hundred day simple moving average of $56.88. The firm has a market cap of $2.67 billion, a PE ratio of 22.49, a P/E/G ratio of 2.91 and a beta of 0.97.

Alarm.com (NASDAQ:ALRM - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The software maker reported $0.60 EPS for the quarter, beating analysts' consensus estimates of $0.52 by $0.08. Alarm.com had a net margin of 13.27% and a return on equity of 13.84%. The business had revenue of $254.31 million for the quarter, compared to analyst estimates of $243.96 million. During the same quarter in the prior year, the business earned $0.58 EPS. Alarm.com's quarterly revenue was up 8.8% on a year-over-year basis. As a group, sell-side analysts forecast that Alarm.com will post 1.64 earnings per share for the current year.

Insider Activity

In related news, insider Jeffrey A. Bedell sold 2,204 shares of the company's stock in a transaction on Friday, May 23rd. The shares were sold at an average price of $56.66, for a total transaction of $124,878.64. Following the completion of the sale, the insider directly owned 505,805 shares in the company, valued at $28,658,911.30. This represents a 0.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Stephen Trundle sold 3,644 shares of the company's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $56.66, for a total transaction of $206,469.04. Following the completion of the transaction, the chief executive officer owned 268,859 shares of the company's stock, valued at $15,233,550.94. This trade represents a 1.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 34,167 shares of company stock valued at $1,994,181 over the last ninety days. Company insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On Alarm.com

Several institutional investors have recently made changes to their positions in the business. Strs Ohio purchased a new position in shares of Alarm.com in the first quarter valued at $56,000. Intech Investment Management LLC raised its holdings in shares of Alarm.com by 20.6% in the first quarter. Intech Investment Management LLC now owns 31,356 shares of the software maker's stock valued at $1,745,000 after acquiring an additional 5,363 shares in the last quarter. Jane Street Group LLC grew its stake in shares of Alarm.com by 610.0% during the first quarter. Jane Street Group LLC now owns 114,715 shares of the software maker's stock worth $6,384,000 after acquiring an additional 98,557 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Alarm.com by 4.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,200 shares of the software maker's stock worth $7,301,000 after acquiring an additional 6,080 shares during the last quarter. Finally, Woodline Partners LP purchased a new stake in Alarm.com in the first quarter valued at approximately $514,000. 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.