American Capital Management Inc. Makes New $3.20 Million Investment in Alarm.com Holdings, Inc. $ALRM

Key Points

• American Capital Management acquired 68,544 Alarm.com shares worth approximately $3.2 million, representing about 0.14% of the company. Institutional investors collectively own 91.74% of Alarm.com.
• Alarm.com exceeded quarterly expectations, reporting adjusted EPS of $0.77 versus the $0.65 consensus and revenue of $277.73 million, up 9.2% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $55.
• Insiders have been selling shares, including CEO Stephen Trundle’s sale of 50,000 shares for approximately $2.88 million; insiders sold 68,324 shares worth $3.78 million over the past 90 days.

American Capital Management Inc. acquired a new stake in Alarm.com Holdings, Inc. (NASDAQ:ALRM - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor acquired 68,544 shares of the software maker's stock, valued at approximately $3,202,000. American Capital Management Inc. owned approximately 0.14% of Alarm.com as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. Covestor Ltd boosted its stake in shares of Alarm.com by 67.3% during the 4th quarter. Covestor Ltd now owns 691 shares of the software maker's stock valued at $35,000 after purchasing an additional 278 shares in the last quarter. Strs Ohio bought a new position in Alarm.com in the first quarter worth about $56,000. Kemnay Advisory Services Inc. purchased a new stake in Alarm.com in the fourth quarter worth about $59,000. Danske Bank A S purchased a new stake in Alarm.com in the fourth quarter worth about $92,000. Finally, Caden Capital Partners LP purchased a new position in shares of Alarm.com during the 4th quarter worth approximately $106,000. Institutional investors own 91.74% of the company's stock.

Insider Buying and Selling

In other news, insider Daniel Ramos sold 2,000 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $46.50, for a total value of $93,000.00. Following the completion of the sale, the insider owned 53,099 shares in the company, valued at approximately $2,469,103.50. This trade represents a 3.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Stephen Trundle sold 50,000 shares of the business's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $57.67, for a total value of $2,883,500.00. Following the transaction, 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 disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 68,324 shares of company stock worth $3,780,333. Insiders own 4.80% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ALRM. Wall Street Zen upgraded shares of Alarm.com from a "hold" rating to a "buy" rating in a research note on Sunday, August 16th. Zacks Research raised shares of Alarm.com from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 19th. Barclays upped their price objective on shares of Alarm.com from $55.00 to $60.00 and gave the stock an "equal weight" rating in a report on Monday, August 10th. Weiss Ratings raised shares of Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 29th. Finally, Raymond James Financial reiterated a "strong-buy" rating and set a $65.00 price objective on shares of Alarm.com in a research note on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $55.00.

Alarm.com Trading Down 0.1%

Shares of Alarm.com stock opened at $56.71 on Thursday. Alarm.com Holdings, Inc. has a 1-year low of $41.49 and a 1-year high of $59.38. The company's fifty day simple moving average is $52.32 and its 200-day simple moving average is $47.83. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.96 and a quick ratio of 4.38. The stock has a market capitalization of $2.80 billion, a PE ratio of 25.09, a P/E/G ratio of 1.80 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM - Get Free Report) last announced 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 firm had revenue of $277.73 million during the quarter, compared to analysts' expectations of $264.96 million. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The company's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, equities analysts anticipate that Alarm.com Holdings, Inc. will post 2.47 earnings per share for the current year.

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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