Alarm.com (NASDAQ:ALRM) Stock Price Passes Below 200 Day Moving Average - Here's What Happened

Key Points

• Technical weakness: Alarm.com shares fell below their 200‑day moving average of $48.59, trading as low as $43.77 and last at $44.44 on volume of 409,076, signaling short‑term downside pressure.
• Analyst sentiment softening: The MarketBeat consensus is a Hold with a $56.67 target after several downgrades and cuts to price targets, including JPMorgan lowering its target to $40 and rating the stock Underweight.
• Mixed fundamentals: The company beat the quarter on EPS ($0.72 vs. $0.66) and revenue ($261.66M vs. $250.75M) and set FY2026 guidance of 2.780–2.790 EPS despite the recent price weakness.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report)'s share price crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $48.59 and traded as low as $43.77. Alarm.com shares last traded at $44.44, with a volume of 409,076 shares traded.

Analyst Upgrades and Downgrades

ALRM has been the topic of a number of analyst reports. Weiss Ratings reiterated a "hold (c-)" rating on shares of Alarm.com in a research note on Friday, April 24th. Zacks Research downgraded Alarm.com from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 25th. JPMorgan Chase & Co. reduced their target price on Alarm.com from $55.00 to $40.00 and set an "underweight" rating for the company in a report on Wednesday, February 18th. Finally, Barclays decreased their price target on Alarm.com from $56.00 to $50.00 and set an "equal weight" rating on the stock in a research report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $56.67.

Alarm.com Trading Down 1.3%

The stock has a 50 day moving average of $45.60 and a 200 day moving average of $48.59. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.92 and a quick ratio of 1.78. The firm has a market cap of $2.20 billion, a P/E ratio of 18.07, a PEG ratio of 1.57 and a beta of 0.83.

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

Insider Transactions at Alarm.com

In other Alarm.com news, CFO Kevin Christopher Bradley sold 1,510 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $45.97, for a total transaction of $69,414.70. Following the transaction, the chief financial officer directly owned 51,546 shares in the company, valued at $2,369,569.62. This trade represents a 2.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 5.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Alarm.com

A number of institutional investors have recently made changes to their positions in ALRM. Argos Wealth Advisors LLC lifted its stake in Alarm.com by 6.8% in the first quarter. Argos Wealth Advisors LLC now owns 13,375 shares of the software maker's stock worth $578,000 after purchasing an additional 852 shares during the last quarter. Inspire Investing LLC grew its stake in shares of Alarm.com by 30.1% during the first quarter. Inspire Investing LLC now owns 11,870 shares of the software maker's stock valued at $513,000 after buying an additional 2,745 shares during the last quarter. Louisiana State Employees Retirement System purchased a new position in shares of Alarm.com in the first quarter worth about $954,000. SG Americas Securities LLC increased its holdings in shares of Alarm.com by 85.3% in the first quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker's stock worth $20,882,000 after buying an additional 222,563 shares during the period. Finally, Virtu Financial LLC bought a new stake in shares of Alarm.com in the 4th quarter valued at about $264,000. Hedge funds and other 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.

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