Alarm.com (NASDAQ:ALRM) Updates FY 2026 Earnings Guidance

Alarm.com (NASDAQ:ALRM) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 2.920-2.940 for the period, compared to the consensus earnings per share estimate of 2.690. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion.

Alarm.com Stock Up 2.2%

Alarm.com stock opened at $57.53 on Friday. The firm has a market capitalization of $2.85 billion, a price-to-earnings ratio of 25.46, a PEG ratio of 1.89 and a beta of 0.76. The company’s 50 day simple moving average is $49.52 and its 200 day simple moving average is $47.13. The company has a debt-to-equity ratio of 0.57, a current ratio of 5.16 and a quick ratio of 4.55. Alarm.com has a fifty-two week low of $41.49 and a fifty-two week high of $59.53.

Alarm.com (NASDAQ:ALRM) last issued its earnings results on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, beating the consensus estimate of $0.65 by $0.12. The firm had revenue of $277.73 million during the quarter, compared to the consensus estimate of $264.96 million. Alarm.com had a net margin of 11.11% and a return on equity of 15.74%. The business’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter 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, sell-side analysts anticipate that Alarm.com will post 2.34 EPS for the current year.

Wall Street Analysts Forecast Growth

Several analysts recently commented on ALRM shares. Wall Street Zen downgraded Alarm.com from a “buy” rating to a “hold” rating in a research note on Saturday. Raymond James Financial reissued a “strong-buy” rating and issued a $65.00 target price on shares of Alarm.com in a research note on Friday. Weiss Ratings upgraded Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Finally, Barclays raised their price target on Alarm.com from $50.00 to $55.00 and gave the stock an “equal weight” rating in a research report on Friday, May 8th. One 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 stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $53.33.

Insider Activity at Alarm.com

In other Alarm.com news, CFO Kevin Christopher Bradley sold 724 shares of the stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $48.46, for a total transaction of $35,085.04. Following the completion of the transaction, the chief financial officer owned 83,622 shares in the company, valued at approximately $4,052,322.12. This represents a 0.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 business’s stock in a transaction dated 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 owned 324,842 shares in the company, valued at approximately $14,221,582.76. This trade represents a 1.84% decrease in their ownership of the stock. 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 have sold 31,893 shares of company stock valued at $1,428,505. Insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On Alarm.com

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. EP Wealth Advisors LLC bought a new position in Alarm.com in the fourth quarter valued at $241,000. Jain Global LLC bought a new stake in Alarm.com during the 4th quarter worth about $206,000. Dynamic Technology Lab Private Ltd bought a new stake in Alarm.com during the 4th quarter worth about $224,000. CIBC Bancorp USA Inc. acquired a new position in shares of Alarm.com during the 3rd quarter worth about $270,000. Finally, Glenmede Investment Management LP boosted its stake in shares of Alarm.com by 21.4% during the 3rd quarter. Glenmede Investment Management LP now owns 3,991 shares of the software maker’s stock worth $212,000 after buying an additional 704 shares during the last quarter. Institutional investors and hedge funds own 91.74% of the company’s stock.

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.