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

Alarm.com Holdings, Inc. (NASDAQ:ALRM)’s stock price reached a new 52-week high during trading on Wednesday. The company traded as high as $68.09 and last traded at $67.8340, with a volume of 57,084 shares. The stock had previously closed at $65.46.

Alarm.com News Summary

Here are the key news stories impacting Alarm.com this week:

• Positive Sentiment: Alarm.com reported Q3 EPS of $0.90, above analyst estimates of roughly $0.75–$0.77, and revenue of $279.44 million versus expectations of $265.82 million. Revenue grew 9% year over year, and the company raised its 2026 full-year guidance—results that may support investor confidence. Alarm.com Reports Third Quarter 2026 Results
• Positive Sentiment: The company expects Q4 revenue of $194.6 million to $194.8 million, providing investors with a near-term outlook alongside the raised full-year guidance. Alarm.com Q4 Revenue Outlook
• Neutral Sentiment: Barclays raised its price target from $60 to $70, implying about 7.1% upside from the cited share price, but kept an “equal weight” rating—suggesting the analyst sees limited relative outperformance. Barclays Ratings
• Neutral Sentiment: Recent earnings-call coverage highlights product expansion and commercial M&A as topics shaping the company’s outlook, but the available reports do not provide further details on their expected financial impact. Q3 Deep Dive

Analysts Set New Price Targets

ALRM has been the subject of several recent research reports. JPMorgan Chase & Co. lifted their price target on Alarm.com from $40.00 to $50.00 and gave the company an “underweight” rating in a research report on Friday, October 30th. Zacks Research lowered shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 6th. Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. William Blair reiterated a “market perform” rating on shares of Alarm.com in a report on Friday. Finally, Raymond James Financial reiterated a “strong-buy” rating and set a $65.00 price target on shares of Alarm.com in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Alarm.com currently has an average rating of “Hold” and a consensus price target of $61.67.

Alarm.com Trading Down 3.1%

The stock’s fifty day moving average price is $57.76 and its 200 day moving average price is $50.41. The stock has a market cap of $3.21 billion, a P/E ratio of 28.76, a PEG ratio of 2.14 and a beta of 0.70. The company has a current ratio of 4.96, a quick ratio of 4.38 and a debt-to-equity ratio of 0.57.

Alarm.com (NASDAQ:ALRM) last issued its quarterly earnings results on Thursday, November 5th. The software maker reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.15. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%. The firm had revenue of $279.44 million for the quarter, compared to analysts’ expectations of $265.82 million. During the same period in the previous year, the firm posted $0.76 EPS. The business’s revenue for the quarter was up 9.0% compared to the same quarter last year. Equities research analysts expect that Alarm.com Holdings, Inc. will post 2.49 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Stephen Trundle sold 50,000 shares of the business’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 completion of the transaction, the chief executive officer owned 324,842 shares in the company, valued at $18,733,638.14. The trade was a 13.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Kevin Bradley sold 5,400 shares of the company’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $55.07, for a total transaction of $297,378.00. Following the transaction, the chief financial officer owned 78,222 shares in the company, valued at $4,307,685.54. This represents a 6.46% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ALRM. Abel Hall LLC increased its stake in Alarm.com by 6.3% in the 3rd quarter. Abel Hall LLC now owns 4,725 shares of the software maker’s stock worth $257,000 after buying an additional 281 shares in the last quarter. Pacer Advisors Inc. raised its holdings in Alarm.com by 21.2% during the first quarter. Pacer Advisors Inc. now owns 2,312 shares of the software maker’s stock valued at $100,000 after acquiring an additional 404 shares during the period. Integrated Wealth Concepts LLC purchased a new position in shares of Alarm.com in the second quarter valued at about $28,000. Allworth Financial LP lifted its position in shares of 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 acquiring an additional 797 shares in the last quarter. Finally, Nisa Investment Advisors LLC lifted its position in shares of Alarm.com by 61.8% in the third quarter. Nisa Investment Advisors LLC now owns 2,408 shares of the software maker’s stock valued at $131,000 after acquiring an additional 920 shares in the last quarter. Hedge funds and other institutional investors own 91.74% of the company’s stock.

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.