Alarm.com (NASDAQ:ALRM) Releases 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) issued an update on its FY 2025 earnings guidance on Thursday morning. 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.

Alarm.com Stock Down 2.6%

ALRM traded down $1.43 during midday trading on Thursday, hitting $54.34. 457,408 shares of the company's stock traded hands, compared to its average volume of 343,603. The company has a market cap of $2.70 billion, a PE ratio of 22.93, a price-to-earnings-growth ratio of 2.96 and a beta of 0.97. The stock's fifty day simple moving average is $56.54 and its 200-day simple moving average is $57.05. The company has a debt-to-equity ratio of 0.64, a current ratio of 2.14 and a quick ratio of 2.01. Alarm.com has a one year low of $48.23 and a one year high of $70.06.

Alarm.com (NASDAQ:ALRM - Get Free Report) last announced its earnings results on Thursday, August 7th. The software maker reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.04). Alarm.com had a return on equity of 14.04% and a net margin of 13.45%. As a group, equities analysts anticipate that Alarm.com will post 1.64 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

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

Insiders Place Their Bets

In other Alarm.com news, CFO Kevin Christopher Bradley sold 754 shares of the stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $56.75, for a total transaction of $42,789.50. Following the transaction, the chief financial officer owned 53,056 shares in the company, valued at $3,010,928. This trade represents a 1.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Stephen Trundle sold 3,644 shares of the firm's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $56.66, for a total value of $206,469.04. Following the completion of the transaction, the chief executive officer owned 268,859 shares in the company, valued at $15,233,550.94. The trade was a 1.34% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 34,167 shares of company stock worth $1,994,181 in the last quarter. Company insiders own 5.80% of the company's stock.

Institutional Trading of Alarm.com

Large investors have recently bought and sold shares of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted 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 valued at $7,301,000 after purchasing an additional 6,080 shares in the last quarter. Jane Street Group LLC boosted 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 valued at $6,384,000 after purchasing an additional 98,557 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of Alarm.com by 7.8% during the first quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker's stock valued at $3,284,000 after purchasing an additional 4,246 shares in the last quarter. Intech Investment Management LLC raised its position in shares of Alarm.com by 20.6% during the first quarter. Intech Investment Management LLC now owns 31,356 shares of the software maker's stock worth $1,745,000 after acquiring an additional 5,363 shares during the last quarter. Finally, Amundi raised its position in shares of Alarm.com by 6.8% during the first quarter. Amundi now owns 17,532 shares of the software maker's stock worth $920,000 after acquiring an additional 1,113 shares during the last quarter. 91.74% of the stock is owned by institutional investors and hedge funds.

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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