Alarm.com (NASDAQ:ALRM) Shares Gap Up on Strong Earnings

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $45.20, but opened at $47.07. Alarm.com shares last traded at $45.4640, with a volume of 77,872 shares traded.

The software maker reported $0.72 EPS for the quarter, topping the consensus estimate of $0.66 by $0.06. The firm had revenue of $261.66 million during the quarter, compared to analysts’ expectations of $250.75 million. Alarm.com had a return on equity of 14.26% and a net margin of 12.92%.Alarm.com’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same period last year, the business earned $0.58 earnings per share. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS.

Key Alarm.com News

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

• Positive Sentiment: Q4 earnings and revenue beat street estimates — Alarm.com reported $0.72 EPS vs. a $0.66 consensus and revenue of $261.66M vs. ~$250.8M expected; quarterly revenue was up ~8% year-over-year. Zacks: Q4 Earnings and Revenues Beat
• Positive Sentiment: Management raised FY‑2026 guidance materially — EPS guidance of $2.78–2.79 vs. consensus ~2.47 and revenue guidance around $1.1B (above street). SaaS & license revenue grew ~8.8% to $180.2M, supporting recurring-revenue strength. Business Wire: Q4 and FY2025 Results
• Positive Sentiment: Market reaction: several outlets note the stock jumping on the beat-and-raise results, driving intraday buying interest. MSN: Stock Soars After Q4 Beat
• Neutral Sentiment: Earnings call transcripts and detail are available (useful for gauging cadence on churn, ARPU, channel trends). Read the call transcript for color on guidance assumptions and margin outlook. Seeking Alpha: Q4 Earnings Call Transcript
• Neutral Sentiment: Options activity picked up ahead of the print, suggesting traders were positioned for a big move; this can amplify intraday volatility but isn’t directional on fundamentals. MSN: Options Flow
• Neutral Sentiment: Reported short-interest data in the feeds is inconsistent/zero‑valued and likely not meaningful to current trading — treat those figures with caution.
• Negative Sentiment: JPMorgan cut its price target from $55 to $40 and moved to an “underweight” stance, citing lower expectations — that downgrade injects notable sell-side skepticism and can cap near-term upside. Benzinga: JPMorgan Lowers PT
• Negative Sentiment: Additional analyst note coverage flagged reduced expectations; negative research headlines could pressure the stock even as results beat, creating a tug-of-war between fundamentals and sentiment. AmericanBankingNews: JPMorgan Lowers Expectations

Analyst Ratings Changes

ALRM has been the subject of a number of research reports. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a report on Tuesday, January 27th. JPMorgan Chase & Co. cut their price target on Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a research note on Wednesday. Zacks Research cut Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Finally, Barclays set a $50.00 target price on shares of Alarm.com in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $57.00.

Insider Activity at Alarm.com

In related news, Director Stephen C. Evans sold 1,154 shares of the firm’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $52.27, for a total transaction of $60,319.58. Following the sale, the director directly owned 6,123 shares in the company, valued at $320,049.21. This trade represents a 15.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Jeffrey A. Bedell sold 22,727 shares of the business’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $51.82, for a total transaction of $1,177,713.14. Following the completion of the sale, the insider directly owned 505,805 shares in the company, valued at approximately $26,210,815.10. This represents a 4.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 26,154 shares of company stock valued at $1,357,388 in the last ninety days. Insiders own 5.80% of the company’s stock.

Hedge Funds Weigh In On Alarm.com

Several hedge funds have recently modified their holdings of the stock. Amundi boosted its holdings in shares of Alarm.com by 6.8% during the first quarter. Amundi now owns 17,532 shares of the software maker’s stock worth $920,000 after acquiring an additional 1,113 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Alarm.com by 7.8% during the first quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker’s stock worth $3,284,000 after buying an additional 4,246 shares in the last quarter. Woodline Partners LP acquired a new position in shares of Alarm.com in the first quarter valued at about $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Alarm.com by 4.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,200 shares of the software maker’s stock valued at $7,301,000 after acquiring an additional 6,080 shares in the last quarter. Finally, Jane Street Group LLC increased its position in Alarm.com by 610.0% during the first quarter. Jane Street Group LLC now owns 114,715 shares of the software maker’s stock worth $6,384,000 after acquiring an additional 98,557 shares during the period. Institutional investors own 91.74% of the company’s stock.

Alarm.com Stock Up 1.1%

The company has a current ratio of 2.06, a quick ratio of 1.92 and a debt-to-equity ratio of 0.59. The firm has a market cap of $2.28 billion, a price-to-earnings ratio of 19.33, a PEG ratio of 1.66 and a beta of 0.79. The firm’s 50 day simple moving average is $49.78 and its two-hundred day simple moving average is $51.92.

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.