Alarm.com (NASDAQ:ALRM) Stock Gets Downgrade from Zacks Research

Alarm.com (NASDAQ:ALRM) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Tuesday, Zacks reports.

Several other research analysts have also issued reports on the company. Wall Street Zen upgraded Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Weiss Ratings raised Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 15th. Raymond James Financial reiterated a “strong-buy” rating and issued a $65.00 price target on shares of Alarm.com in a report on Friday, August 7th. William Blair reissued a “market perform” rating on shares of Alarm.com in a research note on Friday, November 6th. Finally, Barclays raised their price target on Alarm.com from $60.00 to $70.00 and gave the stock an “equal weight” rating in a research note on Friday, November 6th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Alarm.com presently has a consensus rating of “Hold” and a consensus price target of $61.67.

Alarm.com Price Performance

Alarm.com stock opened at $66.29 on Tuesday. The firm has a 50-day moving average price of $58.45 and a 200-day moving average price of $50.73. The firm has a market capitalization of $3.25 billion, a PE ratio of 29.20, a price-to-earnings-growth ratio of 2.07 and a beta of 0.70. The company has a current ratio of 4.83, a quick ratio of 4.27 and a debt-to-equity ratio of 0.55. Alarm.com has a 12-month low of $41.49 and a 12-month high of $69.39.

Alarm.com (NASDAQ:ALRM) last released 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. The firm had revenue of $279.44 million during the quarter, compared to analysts’ expectations of $265.82 million. Alarm.com had a net margin of 10.79% and a return on equity of 15.92%. The firm’s revenue for the quarter was up 9.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.76 EPS. As a group, equities research analysts forecast that Alarm.com will post 2.49 EPS for the current year.

Insiders Place Their Bets

In other Alarm.com news, CEO Stephen Trundle sold 50,000 shares of the business’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 completion of the sale, the chief executive officer directly owned 324,842 shares of the company’s stock, valued at $18,733,638.14. The trade was a 13.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 4.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Alarm.com

A number of institutional investors have recently modified their holdings of ALRM. Integrated Wealth Concepts LLC bought a new position in Alarm.com in the second quarter worth approximately $28,000. Simplex Trading LLC raised its position in Alarm.com by 112.7% during the 3rd quarter. Simplex Trading LLC now owns 589 shares of the software maker’s stock valued at $32,000 after purchasing an additional 5,238 shares in the last quarter. Meeder Asset Management Inc. bought a new stake in Alarm.com during the 3rd quarter valued at $32,000. Allworth Financial LP raised its position in Alarm.com by 435.5% during the 2nd 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. Finally, Farther Finance Advisors LLC lifted its holdings in shares of Alarm.com by 661.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,066 shares of the software maker’s stock worth $58,000 after buying an additional 926 shares during the period. 91.74% of the stock is owned by hedge funds and other institutional investors.

Alarm.com Company Profile

Alarm.com Holdings, Inc. develops cloud-based software and connected-device services for residential and commercial security, automation, and energy management. Its platform brings together devices such as security sensors, cameras, locks, thermostats, and access-control systems, which customers can manage through mobile and web applications. The company provides its technology primarily through a network of security and service providers. Its offerings include intrusion detection, video monitoring and analytics, smart-home automation, commercial security and access control, and tools for monitoring and managing energy use.