Alarm.com (NASDAQ:ALRM) Reaches New 52-Week High - Should You Buy?

Key Points

• Alarm.com shares reached a new 52-week high of $58.50, above the consensus analyst price target of $55.00. Despite one Strong Buy and one Buy rating, the overall analyst consensus remains “Hold.”
• The company exceeded quarterly expectations, reporting $0.77 EPS versus $0.65 expected and $277.73 million in revenue, up 9.2% year over year.
• Institutional ownership is high at 91.74%, with several investors increasing or initiating positions, while CEO Stephen Trundle and CFO Kevin Bradley recently sold shares.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday. The company traded as high as $58.50 and last traded at $58.1750, with a volume of 86,921 shares changing hands. The stock had previously closed at $56.68.

Wall Street Analyst Weigh In

A number of analysts have recently commented on ALRM shares. Raymond James Financial reiterated a "strong-buy" rating and issued a $65.00 price target on shares of Alarm.com in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Zacks Research cut shares of Alarm.com from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 6th. Wall Street Zen raised shares of Alarm.com from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. Finally, Barclays boosted their target price on shares of Alarm.com from $55.00 to $60.00 and gave the company an "equal weight" rating in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $55.00.

Alarm.com Stock Performance

The company has a market cap of $2.84 billion, a PE ratio of 25.44, a PEG ratio of 1.79 and a beta of 0.76. The company has a current ratio of 4.96, a quick ratio of 4.38 and a debt-to-equity ratio of 0.57. The business's 50 day moving average is $55.65 and its two-hundred day moving average is $49.95.

Alarm.com (NASDAQ:ALRM - Get Free Report) last issued its earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.12. The company had revenue of $277.73 million for the quarter, compared to the consensus estimate of $264.96 million. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%. The firm's quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter last year, the company earned $0.60 EPS. 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 year.

Insider Activity

In other news, CEO Stephen Trundle sold 50,000 shares of the company's stock in a transaction dated 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 directly owned 324,842 shares in the company, valued at approximately $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 accessible through the SEC website. Also, CFO Kevin Bradley sold 5,400 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total value of $297,378.00. Following the transaction, the chief financial officer owned 78,222 shares in the company, valued at $4,307,685.54. The trade was a 6.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ALRM. Bank of New York Mellon Corp purchased a new position in shares of Alarm.com in the 2nd quarter valued at approximately $14,339,000. Arrowstreet Capital Limited Partnership boosted its stake in Alarm.com by 43.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker's stock worth $33,654,000 after purchasing an additional 237,633 shares in the last quarter. SG Americas Securities LLC boosted its stake in Alarm.com by 85.3% in the 1st quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker's stock worth $20,882,000 after purchasing an additional 222,563 shares in the last quarter. Evanson Financial LLC purchased a new stake in Alarm.com during the 2nd quarter worth approximately $7,168,000. Finally, Winmill & CO. Inc. acquired a new position in Alarm.com during the 2nd quarter valued at approximately $5,891,000. 91.74% of the stock is owned by institutional investors.

Alarm.com Company Profile

Alarm.com Holdings, Inc NASDAQ: ALRM provides cloud-based solutions for intelligent security, automation and property management. Its platform connects security systems, cameras, access-control equipment, sensors and other smart devices, allowing users to monitor and manage properties through mobile applications and web-based tools.

The company's offerings include professionally monitored residential and commercial security, video surveillance and analytics, smart home automation, energy management, access control and solutions for multifamily and other property-management applications.

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