UBS Group AG Trims Stake in Alarm.com Holdings, Inc. $ALRM

Key Points

• UBS Group AG cut its Alarm.com stake by 52.3% in the fourth quarter, leaving it with 47,766 shares worth about $2.44 million at the end of the period.
• Wall Street sentiment remains cautious: brokerages have mostly Hold or Sell views on ALRM, with a consensus rating of “Reduce” and an average price target of $47.50.
• Alarm.com reported a solid quarter, beating earnings and revenue estimates with EPS of $0.65 and revenue of $265.19 million, while shares were trading around $43.88, near the lower end of their 12-month range.

UBS Group AG lessened its stake in shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM - Free Report) by 52.3% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 47,766 shares of the software maker's stock after selling 52,317 shares during the quarter. UBS Group AG owned about 0.10% of Alarm.com worth $2,437,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Optiver Holding B.V. purchased a new stake in shares of Alarm.com in the third quarter valued at $25,000. Strengthening Families & Communities LLC acquired a new position in Alarm.com in the 3rd quarter valued at about $27,000. Hantz Financial Services Inc. lifted its holdings in Alarm.com by 2,637.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 794 shares of the software maker's stock valued at $42,000 after purchasing an additional 765 shares in the last quarter. Pilgrim Partners Asia Pte Ltd purchased a new position in Alarm.com in the 3rd quarter valued at about $46,000. Finally, Financial Management Professionals Inc. acquired a new stake in shares of Alarm.com during the 4th quarter worth about $47,000. Hedge funds and other institutional investors own 91.74% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently commented on ALRM. Barclays lifted their price target on shares of Alarm.com from $50.00 to $55.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Weiss Ratings restated a "hold (c-)" rating on shares of Alarm.com in a research report on Friday, April 24th. Zacks Research cut shares of Alarm.com from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 25th. Finally, JPMorgan Chase & Co. cut their price target on Alarm.com from $55.00 to $40.00 and set an "underweight" rating for the company in a report on Wednesday, February 18th. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $47.50.

Insider Activity at Alarm.com

In related news, insider Daniel Kerzner sold 1,915 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $43.56, for a total value of $83,417.40. Following the transaction, the insider directly owned 105,085 shares of the company's stock, valued at approximately $4,577,502.60. This trade represents a 1.79% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Stephen Trundle sold 2,944 shares of Alarm.com stock in a transaction on Monday, May 18th. The shares were sold at an average price of $43.56, for a total value of $128,240.64. Following the completion of the transaction, the chief executive officer owned 330,915 shares in the company, valued at $14,414,657.40. The trade was a 0.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 7,930 shares of company stock valued at $349,070 over the last quarter. 5.60% of the stock is currently owned by corporate insiders.

Alarm.com Trading Up 0.2%

NASDAQ ALRM opened at $43.88 on Wednesday. The company has a market cap of $2.17 billion, a P/E ratio of 18.21, a P/E/G ratio of 1.53 and a beta of 0.79. Alarm.com Holdings, Inc. has a 12 month low of $41.49 and a 12 month high of $59.98. 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 company has a 50-day moving average of $44.37 and a 200-day moving average of $47.87.

Alarm.com (NASDAQ:ALRM - Get Free Report) last released its earnings results on Thursday, May 7th. The software maker reported $0.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.60 by $0.05. Alarm.com had a net margin of 12.36% and a return on equity of 14.99%. The firm had revenue of $265.19 million during the quarter, compared to the consensus estimate of $250.94 million. During the same period in the previous year, the firm earned $0.54 earnings per share. Alarm.com's 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. As a group, equities analysts predict that Alarm.com Holdings, Inc. will post 2.24 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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