Alarm.com (NASDAQ:ALRM) Stock Price Target Raised at JPMorgan Chase & Co.

Key Points

• JPMorgan raised Alarm.com’s price target from $40 to $50 but maintained an “underweight” rating, implying 22.91% downside from the prior close.
• Analyst views remain mixed: Alarm.com has a consensus “Hold” rating and an average target price of $58.33, with ratings ranging from Strong Buy to Sell.
• The company recently exceeded quarterly expectations, reporting $0.77 in earnings per share versus a $0.65 consensus estimate and revenue of $277.73 million, up 9.2% year over year.

Alarm.com (NASDAQ:ALRM - Get Free Report) had its target price lifted by equities researchers at JPMorgan Chase & Co. from $40.00 to $50.00 in a report released on Friday, Benzinga reports. The brokerage currently has an "underweight" rating on the software maker's stock. JPMorgan Chase & Co.'s target price would indicate a potential downside of 22.91% from the company's previous close.

Several other equities analysts also recently 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 report on Friday, August 7th. Weiss Ratings raised Alarm.com from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 15th. Barclays increased their price target on Alarm.com from $55.00 to $60.00 and gave the stock an "equal weight" rating in a research report on Monday, August 10th. Zacks Research lowered shares of Alarm.com from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 6th. Finally, Wall Street Zen upgraded Alarm.com from a "hold" rating to a "buy" rating in a research note on Sunday, August 16th. One analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Alarm.com presently has an average rating of "Hold" and a consensus target price of $58.33.

Alarm.com Stock Performance

NASDAQ:ALRM traded down $1.68 during trading on Friday, reaching $64.86. The company's stock had a trading volume of 721,458 shares, compared to its average volume of 472,226. The firm has a market cap of $3.21 billion, a price-to-earnings ratio of 28.70, a price-to-earnings-growth ratio of 2.06 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. The firm has a 50 day moving average of $56.85 and a 200-day moving average of $50.03. Alarm.com has a 12 month low of $41.49 and a 12 month high of $67.41.

Alarm.com (NASDAQ:ALRM - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.12. The business had revenue of $277.73 million during the quarter, compared to analysts' expectations of $264.96 million. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%. The business's revenue was up 9.2% on a year-over-year basis. During the same quarter last year, the business posted $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. Research analysts expect that Alarm.com will post 2.47 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Stephen Trundle sold 50,000 shares of the business's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the transaction, the chief executive officer owned 324,842 shares in the company, valued at $18,733,638.14. The trade was a 13.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Kevin Bradley sold 5,400 shares of the company's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $55.07, for a total value of $297,378.00. Following the transaction, the chief financial officer directly owned 78,222 shares in the company, valued at approximately $4,307,685.54. The trade was a 6.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Alarm.com

Large investors have recently modified their holdings of the business. Vise Technologies Inc. acquired a new stake in shares of Alarm.com in the third quarter valued at about $220,000. Summit Global Investments boosted its stake in shares of Alarm.com by 368.0% during the 3rd quarter. Summit Global Investments now owns 27,200 shares of the software maker's stock worth $1,482,000 after acquiring an additional 21,388 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al grew its stake in shares of Alarm.com by 46.0% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 7,300 shares of the software maker's stock worth $398,000 after acquiring an additional 2,300 shares during the last quarter. Cardinal Capital Management raised its holdings in shares of Alarm.com by 4.7% in the 3rd quarter. Cardinal Capital Management now owns 39,080 shares of the software maker's stock worth $2,129,000 after buying an additional 1,767 shares in the last quarter. Finally, Nisa Investment Advisors LLC lifted its holdings in Alarm.com by 61.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 2,408 shares of the software maker's stock worth $131,000 after buying an additional 920 shares in the last quarter. Institutional investors and hedge funds own 91.74% of the company's stock.

About Alarm.com

Alarm.com Holdings, Inc develops cloud-based technology for connected security and smart automation. Its platform helps residential and commercial customers monitor and manage security systems, video cameras, access control, energy use, and other connected devices through mobile applications and web-based tools.

The company's products and services are delivered primarily through a network of authorized service providers, including security dealers and integrators. Its offerings include intrusion detection, smart-home automation, video surveillance, commercial security and access management, energy management, and solutions designed for property managers and other business customers.

Founded in 2000 and headquartered in Vienna, Virginia, Alarm.com serves customers through service providers in the United States and international markets.

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