Alarm.com (NASDAQ:ALRM) Share Price Crosses Below 200 Day Moving Average - Here's Why

Key Points

• Alarm.com shares fell below its 200-day moving average of $48.86, trading as low as $45.73 and last at $46.04 on Tuesday with about 510,083 shares changing hands.
• Analyst sentiment has softened—JPMorgan cut its price target to $40 and placed an underweight rating, Barclays trimmed its target to $50, and the consensus rating is "Hold" with an average target of $56.67.
• The company beat quarterly estimates (EPS $0.72 vs. $0.66; revenue $261.66M vs. $250.75M) and issued FY2026 guidance of 2.78–2.79 EPS, while sell-side forecasts for the current fiscal year are around 2.24 EPS.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) crossed below its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $48.86 and traded as low as $45.73. Alarm.com shares last traded at $46.04, with a volume of 510,083 shares changing hands.

Wall Street Analysts Forecast Growth

ALRM has been the topic of several recent research reports. JPMorgan Chase & Co. decreased their price target on shares of Alarm.com from $55.00 to $40.00 and set an "underweight" rating on the stock in a research report on Wednesday, February 18th. Weiss Ratings reissued a "hold (c-)" rating on shares of Alarm.com in a research report on Tuesday, January 27th. Barclays reduced their price objective on Alarm.com from $56.00 to $50.00 and set an "equal weight" rating for the company in a research note on Friday, February 20th. Finally, Zacks Research downgraded Alarm.com from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 25th. One analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Alarm.com currently has an average rating of "Hold" and an average target price of $56.67.

Alarm.com Stock Performance

The company has a current ratio of 1.92, a quick ratio of 1.78 and a debt-to-equity ratio of 0.58. The company has a market cap of $2.29 billion, a P/E ratio of 18.72, a PEG ratio of 1.62 and a beta of 0.83. The business's 50 day simple moving average is $45.73 and its 200 day simple moving average is $48.86.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its quarterly earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share for the quarter, topping analysts' consensus estimates of $0.66 by $0.06. The business had revenue of $261.66 million during the quarter, compared to analyst estimates of $250.75 million. Alarm.com had a net margin of 13.11% and a return on equity of 14.79%. The company's revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.58 earnings per share. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. Sell-side analysts predict that Alarm.com Holdings, Inc. will post 2.24 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Alarm.com news, CFO Kevin Christopher Bradley sold 1,510 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total value of $69,414.70. Following the completion of the sale, the chief financial officer owned 51,546 shares in the company, valued at approximately $2,369,569.62. This represents a 2.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On Alarm.com

Hedge funds have recently made changes to their positions in the business. Amundi raised its stake in Alarm.com by 6.8% during the 1st quarter. Amundi now owns 17,532 shares of the software maker's stock valued at $920,000 after purchasing an additional 1,113 shares during the period. AQR Capital Management LLC boosted its stake in Alarm.com by 7.8% in the 1st quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker's stock worth $3,284,000 after purchasing an additional 4,246 shares during the period. Woodline Partners LP bought a new position in Alarm.com in the 1st quarter worth approximately $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Alarm.com by 4.9% during the 1st 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 buying an additional 6,080 shares in the last quarter. Finally, Jane Street Group LLC grew its holdings in Alarm.com by 610.0% during the 1st quarter. Jane Street Group LLC now owns 114,715 shares of the software maker's stock valued at $6,384,000 after buying an additional 98,557 shares in the last quarter. Institutional investors own 91.74% of the company's stock.

About Alarm.com

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.