Alarm.com (NASDAQ:ALRM) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Alarm.com reported quarterly earnings of $0.60 EPS, surpassing the consensus estimate of $0.52 by $0.08, with an 8.8% growth in revenue year-over-year to $254.31 million.
• Insider trading activity included the sale of 7,000 shares by Daniel Ramos, decreasing his ownership by 14.23%, while other insiders also reduced their stakes.
• Wall Street analysts have mixed views on Alarm.com, with ratings ranging from sell to strong buy and a consensus price target of $64.33.

Alarm.com (NASDAQ:ALRM - Get Free Report) announced its quarterly earnings results on Thursday. The software maker reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.08, Briefing.com reports. Alarm.com had a net margin of 13.27% and a return on equity of 14.19%. The company had revenue of $254.31 million during the quarter, compared to the consensus estimate of $243.96 million. During the same quarter in the previous year, the company posted $0.58 earnings per share. The company's revenue for the quarter was up 8.8% compared to the same quarter last year. Alarm.com updated its FY 2025 guidance to 2.400-2.400 EPS.

Alarm.com Price Performance

Alarm.com stock traded up $0.07 during midday trading on Friday, hitting $54.41. The company's stock had a trading volume of 695,805 shares, compared to its average volume of 299,272. The company has a quick ratio of 2.01, a current ratio of 2.14 and a debt-to-equity ratio of 0.64. The stock's 50-day moving average price is $56.42 and its 200-day moving average price is $56.95. Alarm.com has a 12 month low of $48.23 and a 12 month high of $70.06. The company has a market capitalization of $2.71 billion, a PE ratio of 22.86, a price-to-earnings-growth ratio of 2.91 and a beta of 0.97.

Insider Transactions at Alarm.com

In other Alarm.com news, insider Daniel Ramos sold 7,000 shares of the business's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $57.68, for a total value of $403,760.00. Following the sale, the insider directly owned 42,192 shares in the company, valued at approximately $2,433,634.56. The trade was a 14.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Daniel Kerzner sold 2,213 shares of the business's stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $56.66, for a total transaction of $125,388.58. Following the completion of the sale, the insider owned 72,004 shares in the company, valued at approximately $4,079,746.64. This trade represents a 2.98% 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 in the last quarter. 5.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alarm.com

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Strs Ohio acquired a new stake in Alarm.com during the 1st quarter worth about $56,000. Woodline Partners LP acquired a new stake in Alarm.com during the 1st quarter worth about $514,000. Amundi raised its holdings in Alarm.com by 6.8% during the 1st quarter. Amundi now owns 17,532 shares of the software maker's stock worth $920,000 after buying an additional 1,113 shares during the period. Intech Investment Management LLC grew its stake in Alarm.com by 20.6% during the 1st 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. Finally, AQR Capital Management LLC grew its stake in Alarm.com by 7.8% during the 1st quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker's stock valued at $3,284,000 after acquiring an additional 4,246 shares in the last quarter. 91.74% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

ALRM has been the subject of several analyst reports. The Goldman Sachs Group reduced their price target on shares of Alarm.com from $66.00 to $58.00 and set a "neutral" rating for the company in a report on Thursday, April 17th. Barclays cut their price objective on shares of Alarm.com from $67.00 to $60.00 and set an "equal weight" rating on the stock in a research note on Monday, April 14th. Finally, Raymond James Financial cut their price objective 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 issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $64.33.

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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