Alarm.com (NASDAQ:ALRM) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Alarm.com from a "hold" rating to a "strong-buy" rating, reflecting increased confidence in the company's future performance.
• Raymond James reduced Alarm.com's target price from $85.00 to $80.00, while maintaining a "strong-buy" rating for the stock.
• Alarm.com reported a quarterly earnings per share of $0.60, surpassing estimates and showing an 8.8% increase in revenue year-over-year.

Alarm.com (NASDAQ:ALRM - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Thursday,Zacks.com reports.

Separately, Raymond James Financial lowered their price objective on Alarm.com from $85.00 to $80.00 and set a "strong-buy" rating for the company in a research report on Friday, May 9th. Two research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Alarm.com currently has a consensus rating of "Moderate Buy" and an average price target of $64.33.

Alarm.com Trading Up 0.1%

Alarm.com stock traded up $0.03 during trading hours on Thursday, hitting $56.98. The stock had a trading volume of 270,094 shares, compared to its average volume of 353,646. The company has a quick ratio of 1.82, a current ratio of 1.95 and a debt-to-equity ratio of 0.61. The stock has a market cap of $2.84 billion, a price-to-earnings ratio of 23.94, a P/E/G ratio of 2.83 and a beta of 1.07. Alarm.com has a one year low of $48.23 and a one year high of $70.06. The business's 50 day simple moving average is $56.31 and its 200-day simple moving average is $56.17.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its earnings results on Thursday, August 7th. The software maker reported $0.60 EPS for the quarter, beating the consensus estimate of $0.52 by $0.08. Alarm.com had a return on equity of 13.84% and a net margin of 13.27%.The firm had revenue of $254.31 million during the quarter, compared to the consensus estimate of $243.96 million. During the same period last year, the company earned $0.58 earnings per share. The business's quarterly revenue was up 8.8% on a year-over-year basis. Alarm.com has set its FY 2025 guidance at 2.400-2.400 EPS. On average, equities analysts predict that Alarm.com will post 1.64 EPS for the current fiscal year.

Insiders Place Their Bets

In other Alarm.com news, CFO Kevin Christopher Bradley sold 754 shares of Alarm.com stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $56.75, for a total value of $42,789.50. Following the completion of the sale, the chief financial officer directly owned 53,056 shares in the company, valued at approximately $3,010,928. The trade was a 1.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 5.60% of the company's stock.

Institutional Investors Weigh In On Alarm.com

A number of hedge funds have recently added to or reduced their stakes in ALRM. Yousif Capital Management LLC grew its stake in Alarm.com by 1.1% in the 2nd quarter. Yousif Capital Management LLC now owns 18,455 shares of the software maker's stock valued at $1,044,000 after purchasing an additional 199 shares during the period. KBC Group NV grew its position in shares of Alarm.com by 10.8% during the 1st quarter. KBC Group NV now owns 2,128 shares of the software maker's stock valued at $118,000 after acquiring an additional 208 shares during the period. California State Teachers Retirement System grew its position in shares of Alarm.com by 0.5% during the 2nd quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker's stock valued at $2,449,000 after acquiring an additional 226 shares during the period. Avantax Advisory Services Inc. grew its position in shares of Alarm.com by 1.7% during the 1st quarter. Avantax Advisory Services Inc. now owns 13,865 shares of the software maker's stock valued at $772,000 after acquiring an additional 232 shares during the period. Finally, Blair William & Co. IL grew its position in shares of Alarm.com by 2.3% during the 2nd quarter. Blair William & Co. IL now owns 12,762 shares of the software maker's stock valued at $722,000 after acquiring an additional 290 shares during the period. 91.74% of the stock is currently owned by institutional investors.

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.