Alarm.com (NASDAQ:ALRM) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Alarm.com from a “buy” to a “hold,” adding to a generally cautious analyst view. The stock now carries a consensus rating of “Reduce” with a consensus price target of $47.50.
• Alarm.com beat earnings and revenue estimates in its latest quarterly report, posting $0.65 EPS on $265.19 million in revenue. Revenue rose 11.1% year over year, and the company also provided FY 2026 guidance of 2.810 EPS.
• Insider selling has continued, including recent share sales by CEO Stephen Trundle and insider Daniel Ramos. Over the last 90 days, insiders sold 31,169 shares worth about $1.39 million, while institutional investors remain heavily invested at 91.74% ownership.

Alarm.com (NASDAQ:ALRM - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts also recently issued reports on the stock. Weiss Ratings reissued a "hold (c-)" rating on shares of Alarm.com in a research report on Friday, April 24th. Zacks Research downgraded Alarm.com from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 25th. Finally, Barclays boosted their price target on Alarm.com from $50.00 to $55.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $47.50.

Alarm.com Stock Performance

ALRM opened at $44.38 on Friday. The company has a current ratio of 5.16, a quick ratio of 4.55 and a debt-to-equity ratio of 0.57. The company has a market cap of $2.20 billion, a price-to-earnings ratio of 18.42, a PEG ratio of 1.49 and a beta of 0.79. The company's 50 day moving average is $44.77 and its 200 day moving average is $47.27. Alarm.com has a 12-month low of $41.49 and a 12-month high of $59.53.

Alarm.com (NASDAQ:ALRM - Get Free Report) last announced its earnings results on Thursday, May 7th. The software maker reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.05. Alarm.com had a net margin of 12.36% and a return on equity of 14.99%. The company had revenue of $265.19 million during the quarter, compared to analyst estimates of $250.94 million. During the same period in the previous year, the business posted $0.54 earnings per share. The firm's quarterly revenue was up 11.1% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.810-2.810 EPS. On average, equities research analysts predict that Alarm.com will post 2.34 EPS for the current year.

Insider Activity

In other Alarm.com news, CEO Stephen Trundle sold 6,073 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $265,875.94. Following the completion of the transaction, the chief executive officer directly owned 324,842 shares in the company, valued at $14,221,582.76. This represents a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Daniel Ramos sold 8,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $46.23, for a total transaction of $369,840.00. Following the completion of the sale, the insider directly owned 55,099 shares of the company's stock, valued at approximately $2,547,226.77. This trade represents a 12.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 31,169 shares of company stock worth $1,393,420 over the last ninety days. Company insiders own 4.80% of the company's stock.

Institutional Investors Weigh In On Alarm.com

Several institutional investors and hedge funds have recently modified their holdings of ALRM. California State Teachers Retirement System boosted its position in shares of Alarm.com by 0.5% during the second quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker's stock worth $2,449,000 after acquiring an additional 226 shares during the last quarter. Cresset Asset Management LLC lifted its stake in Alarm.com by 0.6% in the 3rd quarter. Cresset Asset Management LLC now owns 40,234 shares of the software maker's stock worth $2,136,000 after purchasing an additional 228 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of Alarm.com by 22.4% during the 4th quarter. GAMMA Investing LLC now owns 1,361 shares of the software maker's stock valued at $69,000 after purchasing an additional 249 shares during the last quarter. Stifel Financial Corp boosted its holdings in shares of Alarm.com by 1.8% during the 4th quarter. Stifel Financial Corp now owns 14,176 shares of the software maker's stock valued at $723,000 after purchasing an additional 254 shares during the last quarter. Finally, ProShare Advisors LLC grew its position in shares of Alarm.com by 3.0% during the fourth quarter. ProShare Advisors LLC now owns 9,284 shares of the software maker's stock valued at $474,000 after purchasing an additional 269 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.

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