Alarm.com (NASDAQ:ALRM) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Alarm.com to “buy” from “hold,” although the broader analyst consensus remains “hold” with an average price target of $55.
• Alarm.com exceeded quarterly expectations, reporting $0.77 in EPS versus $0.65 expected and $277.73 million in revenue, up 9.2% year over year.
• Institutional investors own 91.74% of the company, while insiders sold 37,293 shares worth approximately $1.73 million over the past 90 days.

Alarm.com (NASDAQ:ALRM - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Sunday.

A number of other brokerages have also weighed in on ALRM. Raymond James Financial restated a "strong-buy" rating and issued a $65.00 target price on shares of Alarm.com in a research note on Friday, August 7th. Barclays lifted their price target on Alarm.com from $55.00 to $60.00 and gave the company an "equal weight" rating in a research report on Monday, August 10th. Finally, Weiss Ratings raised Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $55.00.

Alarm.com Price Performance

Alarm.com stock opened at $55.57 on Friday. The stock has a fifty day moving average of $50.57 and a 200-day moving average of $47.34. The stock has a market capitalization of $2.75 billion, a P/E ratio of 24.59, a price-to-earnings-growth ratio of 1.86 and a beta of 0.76. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96. Alarm.com has a 52 week low of $41.49 and a 52 week high of $59.53.

Alarm.com (NASDAQ:ALRM - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.65 by $0.12. The company had revenue of $277.73 million for the quarter, compared to the consensus estimate of $264.96 million. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%.The firm's revenue was up 9.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, sell-side analysts expect that Alarm.com will post 2.34 earnings per share for the current fiscal year.

Insider Activity at Alarm.com

In related news, insider Daniel Kerzner sold 3,944 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $43.78, for a total value of $172,668.32. Following the transaction, the insider owned 101,141 shares of the company's stock, valued at $4,427,952.98. This represents a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 firm's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $46.23, for a total value of $369,840.00. Following the sale, the insider owned 55,099 shares in the company, valued at $2,547,226.77. The trade was a 12.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,293 shares of company stock valued at $1,725,883 over the last ninety days. 4.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Alarm.com

A number of large investors have recently modified their holdings of the company. Amundi boosted its stake in Alarm.com by 6.8% in the first quarter. Amundi now owns 17,532 shares of the software maker's stock worth $920,000 after buying an additional 1,113 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Alarm.com by 7.8% during the first quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker's stock worth $3,284,000 after acquiring an additional 4,246 shares in the last quarter. Woodline Partners LP bought a new stake in shares of Alarm.com in the 1st quarter worth approximately $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Alarm.com by 4.9% in 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 worth $7,301,000 after acquiring an additional 6,080 shares during the last quarter. Finally, Jane Street Group LLC grew its holdings in shares of 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 purchasing an additional 98,557 shares during the last quarter. 91.74% of the stock is owned by hedge funds and other institutional investors.

Alarm.com Company Profile

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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