Alarm.com (NASDAQ:ALRM) Shares Break Below 50-Day Moving Average - Here's Why

Key Points

• Alarm.com shares briefly fell below their 50-day moving average of $55.61, trading as low as $55.53 before recovering to $56.11.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $55.00 price target; recent reports included upgrades to “Buy” and “Strong Buy.”
• The company exceeded quarterly expectations, reporting EPS of $0.77 versus $0.65 expected and revenue of $277.73 million, up 9.2% year over year. However, the CEO and CFO recently sold shares, reducing their holdings.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report)'s share price passed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $55.61 and traded as low as $55.53. Alarm.com shares last traded at $56.11, with a volume of 289,326 shares.

Analyst Upgrades and Downgrades

ALRM has been the subject of several recent analyst reports. Wall Street Zen raised Alarm.com from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. Barclays lifted their target price 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. Zacks Research upgraded shares of Alarm.com from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 19th. Weiss Ratings upgraded shares of Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. Finally, Raymond James Financial reiterated a "strong-buy" rating and set a $65.00 target price on shares of Alarm.com in a research note on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Alarm.com presently has a consensus rating of "Moderate Buy" and a consensus price target of $55.00.

Alarm.com Price Performance

The stock has a market capitalization of $2.78 billion, a PE ratio of 24.83, a PEG ratio of 1.79 and a beta of 0.76. The firm's fifty day moving average price is $55.61 and its two-hundred day moving average price is $49.46. The company has a quick ratio of 4.38, a current ratio of 4.96 and a debt-to-equity ratio of 0.57.

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, topping the consensus estimate of $0.65 by $0.12. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The company had revenue of $277.73 million for the quarter, compared to analysts' expectations of $264.96 million. During the same quarter last year, the company posted $0.60 earnings per share. The firm's quarterly revenue was up 9.2% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities analysts predict that Alarm.com Holdings, Inc. will post 2.47 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Stephen Trundle sold 50,000 shares of the firm's stock in a transaction on Monday, August 24th. The stock was 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 $18,733,638.14. This trade represents a 13.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Kevin Bradley sold 5,400 shares of Alarm.com 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 completion of the sale, the chief financial officer directly owned 78,222 shares of the company's stock, valued at $4,307,685.54. The trade was a 6.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 4.80% of the company's stock.

Institutional Investors Weigh In On Alarm.com

Hedge funds and other institutional investors have recently made changes to their positions in the business. Integrated Wealth Concepts LLC purchased a new stake in shares of Alarm.com in the 2nd quarter worth $28,000. Allworth Financial LP lifted its position in Alarm.com by 435.5% during 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 in the last quarter. Nykredit A S bought a new stake in Alarm.com during the second quarter valued at about $129,000. Corient Private Wealth LP bought a new stake in Alarm.com during the second quarter valued at about $214,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Alarm.com in the second quarter worth about $234,000. Hedge funds and other institutional investors own 91.74% of the company's stock.

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.

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.