Alarm.com (NASDAQ:ALRM) Cut to Hold at Wall Street Zen

Wall Street Zen cut shares of Alarm.com (NASDAQ:ALRM) from a buy rating to a hold rating in a report released on Saturday morning.

A number of other equities research analysts also recently issued reports on ALRM. Weiss Ratings upgraded shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Raymond James Financial restated a “strong-buy” rating and set a $65.00 price target on shares of Alarm.com in a report on Friday. Finally, Barclays upped their price target 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. One investment 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. According to MarketBeat.com, Alarm.com presently has a consensus rating of “Hold” and a consensus target price of $55.00.

Alarm.com Trading Down 1.9%

NASDAQ:ALRM opened at $56.45 on Friday. The stock has a market cap of $2.79 billion, a PE ratio of 24.98, a price-to-earnings-growth ratio of 1.93 and a beta of 0.76. Alarm.com has a fifty-two week low of $41.49 and a fifty-two week high of $59.53. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.96 and a quick ratio of 4.38. The stock’s 50-day moving average is $49.74 and its two-hundred day moving average is $47.15.

Alarm.com (NASDAQ:ALRM) last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.65 by $0.12. The business had revenue of $277.73 million during the quarter, compared to analyst estimates of $264.96 million. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The firm’s revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, equities research analysts forecast that Alarm.com will post 2.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Daniel Kerzner sold 3,944 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $43.78, for a total transaction of $172,668.32. Following the completion of the sale, the insider owned 101,141 shares in the company, valued at $4,427,952.98. This represents a 3.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Stephen Trundle sold 6,073 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 value of $265,875.94. Following the completion of the sale, the chief executive officer directly owned 324,842 shares in the company, valued at $14,221,582.76. This trade represents a 1.84% 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. In the last ninety days, insiders sold 31,893 shares of company stock valued at $1,428,505. 4.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alarm.com

Several hedge funds have recently modified their holdings of ALRM. Swedbank AB raised its stake in shares of Alarm.com by 713.1% in the 4th quarter. Swedbank AB now owns 45,316 shares of the software maker’s stock valued at $2,312,000 after buying an additional 39,743 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Alarm.com by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 6,286,541 shares of the software maker’s stock valued at $320,739,000 after acquiring an additional 53,664 shares in the last quarter. LSV Asset Management boosted its position in shares of Alarm.com by 95.4% during the 4th quarter. LSV Asset Management now owns 119,400 shares of the software maker’s stock valued at $6,092,000 after acquiring an additional 58,300 shares in the last quarter. Louisiana State Employees Retirement System acquired a new stake in shares of Alarm.com during the 1st quarter valued at about $954,000. Finally, Jackson Creek Investment Advisors LLC increased its stake in Alarm.com by 356.4% in the fourth quarter. Jackson Creek Investment Advisors LLC now owns 33,648 shares of the software maker’s stock valued at $1,717,000 after acquiring an additional 26,276 shares during the period. 91.74% of the stock is owned by institutional investors.

About Alarm.com

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.