Alarm.com (NASDAQ:ALRM) Reaches New 12-Month High - Still a Buy?

Key Points

• Alarm.com shares reached a new 52-week high of $58.86 and were trading near $58.68, giving the company a market capitalization of approximately $2.90 billion.
• Analysts maintain a consensus “Hold” rating with a $55 average price target, despite individual ratings ranging from Sell to Strong Buy.
• The company recently exceeded earnings and revenue expectations, reporting $0.77 in EPS and $277.73 million in revenue; however, its CEO and CFO recently sold shares, reducing their holdings.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report)'s share price reached a new 52-week high during trading on Wednesday. The stock traded as high as $58.86 and last traded at $58.68, with a volume of 515,393 shares. The stock had previously closed at $57.46.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. Zacks Research lowered shares of Alarm.com from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. Weiss Ratings raised shares of Alarm.com from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 15th. Raymond James Financial reissued a "strong-buy" rating and set a $65.00 price objective on shares of Alarm.com in a report on Friday, August 7th. Barclays increased their target price on shares of Alarm.com from $55.00 to $60.00 and gave the stock an "equal weight" rating in a research note on Monday, August 10th. Finally, Wall Street Zen upgraded shares of Alarm.com from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Alarm.com currently has a consensus rating of "Hold" and a consensus target price of $55.00.

Alarm.com Trading Up 2.1%

The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96. 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 (NASDAQ:ALRM - Get Free Report) last released its earnings results on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, topping the consensus estimate of $0.65 by $0.12. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%. The business had revenue of $277.73 million for the quarter, compared to the consensus estimate of $264.96 million. During the same period in the previous year, the company posted $0.60 earnings per share. The company's revenue for the quarter was up 9.2% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities research analysts anticipate that Alarm.com Holdings, Inc. will post 2.47 EPS for the current fiscal year.

Insider Buying and Selling at Alarm.com

In related news, CFO Kevin Bradley sold 5,400 shares of the firm's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $55.07, for a total transaction of $297,378.00. Following the completion of the transaction, the chief financial officer directly 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Stephen Trundle sold 50,000 shares of the 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 represents a 13.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 4.80% of the company's stock.

Hedge Funds Weigh In On Alarm.com

Several hedge funds have recently added to or reduced their stakes in ALRM. Integrated Wealth Concepts LLC acquired a new position in Alarm.com during the second quarter valued at $28,000. Allworth Financial LP grew its holdings in Alarm.com by 435.5% in the second quarter. Allworth Financial LP now owns 980 shares of the software maker's stock valued at $46,000 after purchasing an additional 797 shares during the period. Farther Finance Advisors LLC increased its position in shares of Alarm.com by 661.4% in the third quarter. Farther Finance Advisors LLC now owns 1,066 shares of the software maker's stock valued at $58,000 after buying an additional 926 shares in the last quarter. Versant Capital Management Inc lifted its position in shares of Alarm.com by 261.0% during the 2nd quarter. Versant Capital Management Inc now owns 2,231 shares of the software maker's stock valued at $104,000 after buying an additional 1,613 shares in the last quarter. Finally, Pacer Advisors Inc. increased its holdings in Alarm.com by 21.2% in the 1st quarter. Pacer Advisors Inc. now owns 2,312 shares of the software maker's stock worth $100,000 after acquiring an additional 404 shares in 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.