JPMorgan Chase & Co. Has Lowered Expectations for Alarm.com (NASDAQ:ALRM) Stock Price

Alarm.com (NASDAQ:ALRM) had its price objective cut by research analysts at JPMorgan Chase & Co. from $55.00 to $40.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has an “underweight” rating on the software maker’s stock. JPMorgan Chase & Co.‘s target price suggests a potential downside of 11.50% from the company’s previous close.

Several other equities analysts have also issued reports on the stock. Barclays decreased their price target on shares of Alarm.com from $60.00 to $56.00 and set an “equal weight” rating for the company in a report on Friday, November 7th. Zacks Research cut Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a report on Tuesday, January 27th. One analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Alarm.com currently has a consensus rating of “Hold” and a consensus target price of $58.50.

Alarm.com Stock Performance

Shares of ALRM stock opened at $45.20 on Wednesday. The stock has a market cap of $2.25 billion, a PE ratio of 19.15, a price-to-earnings-growth ratio of 1.66 and a beta of 0.79. The stock has a 50-day moving average of $49.78 and a 200-day moving average of $51.92. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.06 and a quick ratio of 1.92. Alarm.com has a one year low of $44.71 and a one year high of $61.41.

Alarm.com (NASDAQ:ALRM) last released its quarterly earnings data on Thursday, February 19th. The software maker reported $0.72 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.06. Alarm.com had a net margin of 12.92% and a return on equity of 14.26%. The business had revenue of $261.66 million for the quarter, compared to analyst estimates of $250.75 million. During the same quarter last year, the firm earned $0.58 EPS. Alarm.com’s quarterly revenue was up 8.1% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. As a group, sell-side analysts expect that Alarm.com will post 1.64 earnings per share for the current year.

Insider Transactions at Alarm.com

In related news, Director Stephen C. Evans sold 1,154 shares of the stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $52.27, for a total transaction of $60,319.58. Following the completion of the transaction, the director directly owned 6,123 shares in the company, valued at approximately $320,049.21. This trade represents a 15.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Jeffrey A. Bedell sold 22,727 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $51.82, for a total value of $1,177,713.14. Following the completion of the sale, the insider owned 505,805 shares in the company, valued at $26,210,815.10. The trade was a 4.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 26,154 shares of company stock valued at $1,357,388. 5.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Invesco Ltd. grew its position in Alarm.com by 8.6% in the fourth quarter. Invesco Ltd. now owns 243,828 shares of the software maker’s stock valued at $12,440,000 after purchasing an additional 19,228 shares in the last quarter. EP Wealth Advisors LLC bought a new position in shares of Alarm.com in the 4th quarter valued at about $241,000. Mackenzie Financial Corp grew its holdings in shares of Alarm.com by 34.3% in the 4th quarter. Mackenzie Financial Corp now owns 42,044 shares of the software maker’s stock valued at $2,172,000 after acquiring an additional 10,727 shares in the last quarter. NewEdge Advisors LLC increased its position in shares of Alarm.com by 960.9% in the fourth quarter. NewEdge Advisors LLC now owns 14,174 shares of the software maker’s stock valued at $723,000 after acquiring an additional 12,838 shares during the last quarter. Finally, XTX Topco Ltd raised its holdings in Alarm.com by 266.3% during the fourth quarter. XTX Topco Ltd now owns 31,209 shares of the software maker’s stock worth $1,592,000 after acquiring an additional 22,689 shares in the last quarter. Institutional investors and hedge funds own 91.74% of the company’s stock.

Key Alarm.com News

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

• Positive Sentiment: Q4 earnings and revenue beat — Alarm.com reported $0.72 EPS vs. a $0.66 consensus and revenue of $261.7M vs. ~$250.8M expected, driven by SaaS strength and higher margins; this is the primary bullish catalyst. Zacks: ALRM Q4 Beat
• Positive Sentiment: Raised FY‑2026 guidance — management issued EPS guidance of $2.78–$2.79 and revenue guidance above consensus (~$1.1B vs. ~$1.0B expected), signaling confidence in recurring SaaS/license growth and underpinning forward multiple support. Business Wire: Q4 & Guidance
• Positive Sentiment: SaaS revenue momentum — SaaS & license revenue grew ~8.8% year-over-year in Q4, highlighting the recurring-revenue base that supports valuation and margin leverage. Press Release PDF
• Neutral Sentiment: Options activity flagged interest in a near‑term move — media noted elevated options positioning, which can amplify intraday volatility but doesn’t change fundamentals. MSN: Options Activity
• Neutral Sentiment: Short-interest data appears to show zero shares reported (likely a reporting/data anomaly), implying no clear short‑pressure signal from latest filings. Investors should verify via the exchange or broker data for confirmation.
• Negative Sentiment: Analyst downgrade/price‑target cut — JPMorgan lowered its price target to $40 and moved to an “underweight” stance, which could weigh on sentiment and sell‑side support despite the quarter and guidance. Benzinga: JPMorgan PT Cut

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.