Zacks Research Downgrades Alarm.com (NASDAQ:ALRM) to Hold

Key Points

• Zacks Research downgraded Alarm.com from “strong buy” to “hold.” The broader analyst consensus is also “hold,” with a consensus price target of $55.00.
• Alarm.com reported better-than-expected quarterly results, with EPS of $0.77 versus the $0.65 estimate and revenue of $277.73 million versus $264.96 million. Revenue increased 9.2% year over year.
• The stock opened at $54.68, near the consensus target, while CEO Stephen Trundle and CFO Kevin Bradley recently sold shares. Institutional investors own a substantial 91.74% of the company.

Alarm.com (NASDAQ:ALRM - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

A number of other brokerages have also recently issued reports on ALRM. Barclays increased their target price on Alarm.com from $55.00 to $60.00 and gave the stock an "equal weight" rating in a report on Monday, August 10th. Raymond James Financial restated a "strong-buy" rating and set a $65.00 price target on shares of Alarm.com in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Finally, Wall Street Zen raised shares of 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 assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Alarm.com currently has a consensus rating of "Hold" and a consensus target price of $55.00.

Alarm.com Stock Performance

Shares of ALRM opened at $54.68 on Tuesday. Alarm.com has a one year low of $41.49 and a one year high of $58.15. The company has a market cap of $2.70 billion, a PE ratio of 24.19, a P/E/G ratio of 1.78 and a beta of 0.76. The stock has a 50-day moving average of $55.59 and a 200-day moving average of $49.52. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.96 and a quick ratio of 4.38.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share for the quarter, topping analysts' consensus estimates of $0.65 by $0.12. The business 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 for the quarter was up 9.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities research analysts predict that Alarm.com will post 2.47 EPS for the current fiscal year.

Insider Activity at Alarm.com

In related news, CEO Stephen Trundle sold 50,000 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $57.67, for a total value of $2,883,500.00. Following the completion of the sale, the chief executive officer directly owned 324,842 shares of the company's stock, valued at approximately $18,733,638.14. This represents a 13.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Kevin Bradley sold 5,400 shares of the firm'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 owned 78,222 shares in the company, valued at approximately $4,307,685.54. This trade represents a 6.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.80% of the stock is owned by insiders.

Institutional Trading of Alarm.com

Several institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its position in shares of Alarm.com by 1.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,117,359 shares of the software maker's stock valued at $48,257,000 after purchasing an additional 11,624 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Alarm.com by 43.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker's stock valued at $33,654,000 after buying an additional 237,633 shares during the last quarter. SG Americas Securities LLC increased its stake in Alarm.com by 85.3% in the 1st quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker's stock valued at $20,882,000 after buying an additional 222,563 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Alarm.com during the 2nd quarter worth approximately $14,339,000. Finally, Principal Financial Group Inc. lifted its position in shares of Alarm.com by 5.2% during the 1st quarter. Principal Financial Group Inc. now owns 300,204 shares of the software maker's stock worth $12,966,000 after buying an additional 14,967 shares in the last quarter. Institutional investors own 91.74% of the company's stock.

About Alarm.com

Alarm.com Holdings, Inc NASDAQ: ALRM provides cloud-based solutions for intelligent security, automation and property management. Its platform connects security systems, cameras, access-control equipment, sensors and other smart devices, allowing users to monitor and manage properties through mobile applications and web-based tools.

The company's offerings include professionally monitored residential and commercial security, video surveillance and analytics, smart home automation, energy management, access control and solutions for multifamily and other property-management applications.

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