Hsbc Holdings PLC Sells 25,366 Shares of Alarm.com Holdings, Inc. $ALRM

Key Points

• Hsbc Holdings PLC cut its stake in Alarm.com by 44.6% in the fourth quarter, selling 25,366 shares and ending with 31,564 shares valued at about $1.62 million.
• Analyst sentiment has softened: several firms downgraded ALRM, and the stock now carries an average “Reduce” rating with a consensus target price of $47.50.
• Alarm.com recently posted solid quarterly results, with EPS of $0.65 beating estimates and revenue rising 11.1% year over year to $265.19 million.

Hsbc Holdings PLC lowered its position in Alarm.com Holdings, Inc. (NASDAQ:ALRM - Free Report) by 44.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 31,564 shares of the software maker's stock after selling 25,366 shares during the quarter. Hsbc Holdings PLC owned approximately 0.06% of Alarm.com worth $1,620,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Covestor Ltd grew its holdings in Alarm.com by 67.3% during the fourth quarter. Covestor Ltd now owns 691 shares of the software maker's stock worth $35,000 after purchasing an additional 278 shares during the period. Financial Management Professionals Inc. bought a new position in shares of Alarm.com during the 4th quarter worth approximately $47,000. Strs Ohio acquired a new position in shares of Alarm.com during the 1st quarter worth approximately $56,000. Kemnay Advisory Services Inc. acquired a new position in shares of Alarm.com during the 4th quarter worth approximately $59,000. Finally, GAMMA Investing LLC raised its stake in Alarm.com by 22.4% in the 4th quarter. GAMMA Investing LLC now owns 1,361 shares of the software maker's stock valued at $69,000 after acquiring an additional 249 shares during the period. Institutional investors own 91.74% of the company's stock.

Analysts Set New Price Targets

Several brokerages have issued reports on ALRM. Weiss Ratings downgraded Alarm.com from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, June 24th. Zacks Research downgraded shares of Alarm.com from a "strong-buy" rating to a "hold" rating in a report on Wednesday, March 25th. Wall Street Zen lowered shares of Alarm.com from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. Finally, Barclays raised their target price on shares of Alarm.com from $50.00 to $55.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Two equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus target price of $47.50.

Alarm.com Stock Performance

ALRM opened at $46.72 on Wednesday. The company has a debt-to-equity ratio of 0.57, a current ratio of 5.16 and a quick ratio of 4.55. The business has a fifty day simple moving average of $44.83 and a 200 day simple moving average of $46.88. Alarm.com Holdings, Inc. has a 1 year low of $41.49 and a 1 year high of $59.53. The company has a market capitalization of $2.31 billion, a PE ratio of 19.39, a price-to-earnings-growth ratio of 1.55 and a beta of 0.79.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The software maker reported $0.65 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.05. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.The firm had revenue of $265.19 million for the quarter, compared to analysts' expectations of $250.94 million. During the same quarter last year, the business earned $0.54 EPS. The company's quarterly revenue was up 11.1% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.810-2.810 EPS. Research analysts expect that Alarm.com Holdings, Inc. will post 2.34 EPS for the current year.

Insider Buying and Selling at Alarm.com

In other news, insider Daniel Kerzner sold 3,944 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total transaction of $172,668.32. Following the transaction, the insider directly owned 101,141 shares of the company's stock, valued at approximately $4,427,952.98. This trade represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Daniel Ramos sold 8,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $46.23, for a total value of $369,840.00. Following the sale, the insider directly owned 55,099 shares in the company, valued at $2,547,226.77. This represents a 12.68% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 31,169 shares of company stock worth $1,393,420. 4.80% of the stock is currently owned by company insiders.

Alarm.com 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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