Alarm.com (NASDAQ:ALRM) Hits New 52-Week Low on Analyst Downgrade

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) reached a new 52-week low on Thursday after Barclays lowered their price target on the stock from $56.00 to $50.00. Barclays currently has an equal weight rating on the stock. Alarm.com traded as low as $44.71 and last traded at $45.31, with a volume of 38575 shares. The stock had previously closed at $45.21.

A number of other brokerages have also recently commented on ALRM. Zacks Research cut shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. JPMorgan Chase & Co. dropped their target price on Alarm.com from $55.00 to $40.00 and set an “underweight” rating for the company in a report on Wednesday. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. One investment 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 company. According to data from MarketBeat, Alarm.com has an average rating of “Hold” and an average price target of $57.00.

Insider Transactions at Alarm.com

In related news, Director Stephen C. Evans sold 1,154 shares of Alarm.com stock in a transaction on 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 sale, the director directly owned 6,123 shares of the company’s stock, valued at $320,049.21. The trade was a 15.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jeffrey A. Bedell sold 22,727 shares of the company’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 transaction of $1,177,713.14. Following the completion of the transaction, the insider owned 505,805 shares of the company’s stock, valued at $26,210,815.10. This trade represents a 4.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 26,154 shares of company stock worth $1,357,388. Corporate insiders own 5.80% of the company’s stock.

Alarm.com News Summary

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

• Positive Sentiment: Q4 results beat consensus — EPS $0.72 vs. $0.66 expected and revenue $261.7M vs. ~$250.8M expected; SaaS & license revenue grew ~8.8% year-over-year. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company raised FY2026 guidance to $2.780–2.790 EPS and ~ $1.1B revenue vs. street ~ $2.47 EPS / ~$1.0B — a material upward revision that supports higher valuation multiples. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Market writeups emphasize the beat and rally — headlines note the stock “soars” after results, reinforcing the positive sentiment and likely driving intraday buying. Alarm.com (NASDAQ:ALRM) beats Q4 CY2025 sales expectations, stock soars
• Neutral Sentiment: Earnings-call highlights and full transcripts available for detail on product mix, churn and margin drivers — useful for fundamental follow-up but mostly confirmatory. Alarm.com Holdings Inc (ALRM) Q4 2025 Earnings Call Highlights Earnings Call Transcript
• Neutral Sentiment: Short‑interest entries for February in the feed show zero/NaN values and an effectively 0.0 days ratio — the data appears erroneous and is unlikely to be driving moves.
• Negative Sentiment: JPMorgan lowered expectations for ALRM’s stock price — an analyst note that could restrain upside or prompt profit-taking despite the upbeat quarter. JPMorgan Chase & Co. Has Lowered Expectations for Alarm.com (NASDAQ:ALRM) Stock Price

Institutional Investors Weigh In On Alarm.com

Several hedge funds have recently added to or reduced their stakes in ALRM. Vanguard Group Inc. lifted its holdings in shares of Alarm.com by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 6,286,541 shares of the software maker’s stock worth $320,739,000 after buying an additional 53,664 shares in the last quarter. Disciplined Growth Investors Inc. MN increased its position in Alarm.com by 3.0% during the second quarter. Disciplined Growth Investors Inc. MN now owns 3,491,824 shares of the software maker’s stock worth $197,532,000 after acquiring an additional 102,481 shares during the period. Bank of Montreal Can raised its stake in 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 worth $113,837,000 after purchasing an additional 1,923,525 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Alarm.com by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 1,219,732 shares of the software maker’s stock valued at $62,239,000 after purchasing an additional 7,454 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of Alarm.com by 2.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,105,735 shares of the software maker’s stock worth $56,417,000 after purchasing an additional 25,659 shares in the last quarter. Institutional investors and hedge funds own 91.74% of the company’s stock.

Alarm.com Stock Performance

The stock’s 50-day simple moving average is $49.65 and its 200-day simple moving average is $51.85. The stock has a market cap of $2.27 billion, a price-to-earnings ratio of 18.53, a price-to-earnings-growth ratio of 1.66 and a beta of 0.79. The company has a current ratio of 2.06, a quick ratio of 1.92 and a debt-to-equity ratio of 0.59.

Alarm.com (NASDAQ:ALRM) last issued its quarterly earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.06. Alarm.com had a return on equity of 15.04% and a net margin of 13.11%.The business had revenue of $261.66 million during the quarter, compared to analysts’ expectations of $250.75 million. During the same period in the previous year, the company posted $0.58 earnings per share. The firm’s revenue for the quarter 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. Analysts forecast that Alarm.com Holdings, Inc. will post 1.64 earnings per share for the current fiscal year.

Alarm.com Company Profile

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.