Alarm.com (NASDAQ:ALRM) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Alarm.com (NASDAQ:ALRM) from a hold rating to a buy rating in a research note released on Sunday.

A number of other analysts have also issued reports on ALRM. Weiss Ratings upgraded Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. Barclays raised their target price on Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a research note on Monday, August 10th. Finally, Raymond James Financial reaffirmed a “strong-buy” rating and set a $65.00 target price on shares of Alarm.com in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Alarm.com currently has a consensus rating of “Hold” and an average target price of $55.00.

Alarm.com Stock Performance

NASDAQ ALRM opened at $55.57 on Friday. The firm has a market cap of $2.75 billion, a P/E ratio of 24.59, a price-to-earnings-growth ratio of 1.86 and a beta of 0.76. The company has a quick ratio of 4.38, a current ratio of 4.96 and a debt-to-equity ratio of 0.57. The company’s 50 day moving average is $50.57 and its 200-day moving average is $47.33. Alarm.com has a 12-month low of $41.49 and a 12-month high of $59.53.

Alarm.com (NASDAQ:ALRM) last released its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 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 during the quarter, compared to the consensus estimate of $264.96 million. During the same period last year, the firm earned $0.60 EPS. Alarm.com’s revenue for the quarter was up 9.2% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. Sell-side analysts predict that Alarm.com will post 2.34 earnings per share for the current year.

Insiders Place Their Bets

In other Alarm.com news, insider Daniel Kerzner sold 3,944 shares of Alarm.com stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total transaction of $172,668.32. Following the completion of the sale, the insider directly owned 101,141 shares in the company, valued at $4,427,952.98. The trade was a 3.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Christopher Bradley sold 5,400 shares of the business’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total transaction of $297,378.00. Following the completion of the transaction, the chief financial officer directly owned 78,222 shares of the company’s stock, valued at approximately $4,307,685.54. This represents a 6.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 30,873 shares of company stock worth $1,446,228. 4.80% of the stock is currently owned by insiders.

Institutional Trading of Alarm.com

A number of hedge funds have recently made changes to their positions in the stock. Bank of Montreal Can boosted its stake in shares of Alarm.com by 625.1% in the 4th quarter. Bank of Montreal Can now owns 2,231,227 shares of the software maker’s stock valued at $113,837,000 after purchasing an additional 1,923,525 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Alarm.com by 101,569.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 947,556 shares of the software maker’s stock worth $48,344,000 after purchasing an additional 946,624 shares during the period. Bank of New York Mellon Corp bought a new stake in Alarm.com in the second quarter worth $14,339,000. Arrowstreet Capital Limited Partnership lifted its stake in Alarm.com by 43.9% in the first 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 during the last quarter. Finally, SG Americas Securities LLC boosted its position in Alarm.com by 85.3% during the first quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker’s stock valued at $20,882,000 after buying an additional 222,563 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.