Alarm.com (NASDAQ:ALRM) Rating Increased to Strong-Buy at 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 stock analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report issued on Thursday, September 4th,Zacks.com reports.

Separately, Raymond James Financial decreased their price objective on shares of 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 analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $64.33.

Alarm.com Stock Up 1.6%

Shares of NASDAQ:ALRM traded up $0.91 during trading on Thursday, hitting $56.13. The company's stock had a trading volume of 96,906 shares, compared to its average volume of 346,515. The business has a 50 day moving average price of $56.25 and a two-hundred day moving average price of $56.16. The company has a market capitalization of $2.80 billion, a PE ratio of 23.57, a P/E/G ratio of 2.80 and a beta of 1.07. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.82 and a current ratio of 1.95. Alarm.com has a fifty-two week low of $48.23 and a fifty-two week high of $70.06.

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

Insiders Place Their Bets

In related news, CFO Kevin Christopher Bradley sold 754 shares of the business's stock in a transaction on Wednesday, July 2nd. The shares were 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 of the company's stock, valued at $3,010,928. The trade was a 1.40% 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. 5.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Alarm.com

A number of institutional investors and hedge funds have recently bought and sold shares of ALRM. Burgundy Asset Management Ltd. purchased a new stake in Alarm.com in the fourth quarter valued at $42,490,000. Norges Bank purchased a new stake in Alarm.com in the second quarter valued at $33,459,000. Nuveen LLC acquired a new position in Alarm.com in the first quarter valued at $21,584,000. Public Sector Pension Investment Board increased its stake in Alarm.com by 152.1% in the first quarter. Public Sector Pension Investment Board now owns 310,588 shares of the software maker's stock valued at $17,284,000 after purchasing an additional 187,398 shares during the period. Finally, Select Equity Group L.P. increased its stake in Alarm.com by 587.4% in the first quarter. Select Equity Group L.P. now owns 200,434 shares of the software maker's stock valued at $11,154,000 after purchasing an additional 171,274 shares during the period. 91.74% of the stock is owned by hedge funds and other institutional investors.

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.