Alarm.com Holdings, Inc. (ALRM) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analyst sentiment is mixed: Alarm.com has a consensus “Hold” rating from five analysts, with one sell, three hold, and one strong-buy recommendation. The average 12-month price target is $55, below the reported share price of $58.68.
• Quarterly results exceeded expectations: The company reported $0.77 in adjusted earnings per share versus the $0.65 consensus estimate, while revenue rose 9.2% year over year to $277.73 million.
• Insiders sold shares while institutions increased ownership: CEO Stephen Trundle and CFO Kevin Bradley sold shares, while several institutional investors added to their positions. Institutions collectively own 91.74% of the company.

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) have been assigned a consensus rating of "Hold" from the five analysts that are currently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, three have given a hold recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $55.00.

A number of research firms have recently commented on ALRM. Raymond James Financial restated a "strong-buy" rating and set a $65.00 price target on shares of Alarm.com in a research report on Friday, August 7th. Weiss Ratings upgraded Alarm.com from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 15th. Barclays lifted their price objective on Alarm.com from $55.00 to $60.00 and gave the company an "equal weight" rating in a research note on Monday, August 10th. Zacks Research lowered 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 report on Sunday, August 16th.

Alarm.com Price Performance

ALRM stock opened at $58.68 on Wednesday. The firm has a 50 day moving average of $55.74 and a 200-day moving average of $50.37. The firm has a market capitalization of $2.90 billion, a P/E ratio of 25.96, a price-to-earnings-growth ratio of 1.82 and a beta of 0.76. Alarm.com has a 12 month low of $41.49 and a 12 month high of $58.86. The company has a current ratio of 4.96, a quick ratio of 4.38 and a debt-to-equity ratio of 0.57.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its 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. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The business had revenue of $277.73 million for the quarter, compared to analyst estimates of $264.96 million. During the same quarter in the prior year, the firm posted $0.60 EPS. Alarm.com's revenue was up 9.2% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, sell-side analysts predict that Alarm.com will post 2.47 earnings per share for the current fiscal year.

Insider Activity

In other Alarm.com news, CEO Stephen Trundle sold 50,000 shares of the firm's stock in a transaction dated 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 sale, the chief executive officer owned 324,842 shares of the company's stock, valued at $18,733,638.14. This trade represents a 13.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Kevin Bradley sold 5,400 shares of Alarm.com stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $55.07, for a total value of $297,378.00. Following the sale, the chief financial officer owned 78,222 shares of the company's stock, valued at approximately $4,307,685.54. This trade represents a 6.46% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 4.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP increased its stake in Alarm.com by 1.1% in 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 acquiring an additional 11,624 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in Alarm.com by 43.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker's stock valued at $33,654,000 after purchasing an additional 237,633 shares in the last quarter. SG Americas Securities LLC lifted its stake in Alarm.com by 85.3% during the first quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker's stock worth $20,882,000 after purchasing an additional 222,563 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in Alarm.com during the second quarter worth about $14,339,000. Finally, Principal Financial Group Inc. lifted its stake in Alarm.com by 5.2% during the first quarter. Principal Financial Group Inc. now owns 300,204 shares of the software maker's stock worth $12,966,000 after purchasing an additional 14,967 shares during the last quarter. 91.74% of the stock is currently owned by institutional investors.

Alarm.com Company Profile

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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