Alarm.com Holdings, Inc. (NASDAQ:ALRM) Stock Now Rated "Hold" by Sell-Side Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Alarm.com, with two sell ratings, three holds and one strong buy; the average 12-month price target is $61.67.
• Alarm.com beat quarterly estimates, reporting EPS of $0.90 versus $0.75 expected and revenue of $279.44 million versus $265.82 million expected. Revenue rose 9% year over year.
• Shares fell 1.6% to $65.36 in Friday trading. Recent analyst actions were mixed, including a Zacks downgrade to “Strong Sell” and Barclays raising its target to $70 while maintaining an equal-weight rating.

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) have earned a consensus recommendation of "Hold" from the six brokerages that are covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, three have given a hold recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $61.67.

Several equities research analysts recently weighed in on ALRM shares. Zacks Research downgraded shares of Alarm.com from a "hold" rating to a "strong sell" rating in a research note on Tuesday, November 10th. Barclays boosted their target price on Alarm.com from $60.00 to $70.00 and gave the stock an "equal weight" rating in a research note on Friday, November 6th. Weiss Ratings upgraded shares of Alarm.com from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 15th. William Blair restated a "market perform" rating on shares of Alarm.com in a research report on Friday, November 6th. Finally, JPMorgan Chase & Co. boosted their price target on Alarm.com from $40.00 to $50.00 and gave the company an "underweight" rating in a research report on Friday, October 30th.

Alarm.com Trading Down 1.6%

Shares of ALRM traded down $1.06 during trading on Friday, reaching $65.36. 337,781 shares of the company traded hands, compared to its average volume of 542,205. The stock has a market cap of $3.21 billion, a PE ratio of 28.79, a price-to-earnings-growth ratio of 2.09 and a beta of 0.70. The company has a quick ratio of 4.27, a current ratio of 4.83 and a debt-to-equity ratio of 0.55. Alarm.com has a twelve month low of $41.49 and a twelve month high of $69.39. The stock has a 50-day simple moving average of $58.82 and a 200-day simple moving average of $50.90.

Alarm.com (NASDAQ:ALRM - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The software maker reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.75 by $0.15. Alarm.com had a return on equity of 15.92% and a net margin of 10.79%. The company had revenue of $279.44 million for the quarter, compared to analysts' expectations of $265.82 million. During the same period in the prior year, the firm earned $0.76 earnings per share. The firm's revenue was up 9.0% compared to the same quarter last year. On average, analysts anticipate that Alarm.com will post 2.49 earnings per share for the current year.

Insider Transactions at Alarm.com

In related news, CEO Stephen Trundle sold 50,000 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the completion of the transaction, the chief executive officer directly owned 324,842 shares of the company's stock, valued at $18,733,638.14. This represents a 13.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Donald Clarke sold 4,624 shares of the stock in a transaction that occurred on Tuesday, November 10th. The stock was sold at an average price of $64.94, for a total value of $300,282.56. Following the transaction, the director directly owned 13,551 shares of the company's stock, valued at approximately $880,001.94. This trade represents a 25.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 4.80% of the company's stock.

Hedge Funds Weigh In On Alarm.com

Several hedge funds have recently bought and sold shares of the company. Entropy Technologies LP increased its position in shares of Alarm.com by 94.1% in the third quarter. Entropy Technologies LP now owns 27,242 shares of the software maker's stock valued at $1,484,000 after buying an additional 13,207 shares in the last quarter. EP Wealth Advisors LLC acquired a new position in shares of Alarm.com in the third quarter valued at approximately $213,000. Empowered Funds LLC acquired a new position in Alarm.com in the 3rd quarter valued at $1,784,000. State Board of Administration of Florida Retirement System lifted its position in Alarm.com by 222.6% during the third quarter. State Board of Administration of Florida Retirement System now owns 43,845 shares of the software maker's stock worth $2,388,000 after buying an additional 30,254 shares during the period. Finally, First Trust Advisors LP lifted its holdings in shares of Alarm.com by 53.1% during the 3rd quarter. First Trust Advisors LP now owns 82,025 shares of the software maker's stock worth $4,468,000 after acquiring an additional 28,459 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. develops cloud-based software and connected-device services for residential and commercial security, automation, and energy management. Its platform brings together devices such as security sensors, cameras, locks, thermostats, and access-control systems, which customers can manage through mobile and web applications. The company provides its technology primarily through a network of security and service providers. Its offerings include intrusion detection, video monitoring and analytics, smart-home automation, commercial security and access control, and tools for monitoring and managing energy use.

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