Alarm.com (NASDAQ:ALRM) Upgraded 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 published on Sunday morning.

ALRM has been the topic of a number of other research reports. Weiss Ratings upgraded Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Raymond James Financial restated a “strong-buy” rating and issued a $65.00 price objective on shares of Alarm.com in a report on Friday, August 7th. Finally, Barclays boosted their target price on Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a report on Monday, August 10th. One equities research 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, the stock has a consensus rating of “Hold” and an average price target of $55.00.

Alarm.com Price Performance

Alarm.com stock opened at $55.57 on Friday. Alarm.com has a 1 year low of $41.49 and a 1 year high of $59.53. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96. The firm has a 50 day moving average price of $50.98 and a 200 day moving average price of $47.42. The company has a market cap of $2.75 billion, a price-to-earnings ratio of 24.59, a PEG ratio of 1.86 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM) last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share for the quarter, topping analysts’ consensus estimates of $0.65 by $0.12. The company had revenue of $277.73 million for 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 15.65%. Alarm.com’s revenue was up 9.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.60 earnings per share. 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.

Insider Activity

In related news, CFO Kevin Christopher Bradley sold 5,400 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total value of $297,378.00. Following the completion of the transaction, the chief financial officer owned 78,222 shares of the company’s stock, valued at approximately $4,307,685.54. This represents a 6.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Stephen Trundle sold 6,073 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $265,875.94. Following the sale, the chief executive officer owned 324,842 shares of the company’s stock, valued at approximately $14,221,582.76. This trade represents a 1.84% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 30,873 shares of company stock valued at $1,446,228. Corporate insiders own 4.80% of the company’s stock.

Hedge Funds Weigh In On Alarm.com

A number of institutional investors have recently made changes to their positions in the business. California State Teachers Retirement System increased its position in Alarm.com by 0.5% during the second quarter. California State Teachers Retirement System now owns 43,287 shares of the software maker’s stock worth $2,449,000 after buying an additional 226 shares during the last quarter. Stifel Financial Corp lifted its position in shares of Alarm.com by 1.8% in the fourth quarter. Stifel Financial Corp now owns 14,176 shares of the software maker’s stock worth $723,000 after buying an additional 254 shares during the last quarter. ProShare Advisors LLC boosted its stake in shares of Alarm.com by 3.0% during the 4th quarter. ProShare Advisors LLC now owns 9,284 shares of the software maker’s stock worth $474,000 after acquiring an additional 269 shares in the last quarter. Covestor Ltd increased its holdings in shares of Alarm.com by 67.3% during the 4th quarter. Covestor Ltd now owns 691 shares of the software maker’s stock valued at $35,000 after acquiring an additional 278 shares during the last quarter. Finally, State of Alaska Department of Revenue raised its stake in shares of Alarm.com by 1.3% in the 4th quarter. State of Alaska Department of Revenue now owns 27,944 shares of the software maker’s stock valued at $1,424,000 after acquiring an additional 368 shares in the last quarter. 91.74% of the stock is owned by institutional investors and hedge funds.

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.