Wall Street Zen Upgrades Alarm.com (NASDAQ:ALRM) to “Buy”

Alarm.com (NASDAQ:ALRM) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday.

A number of other analysts also recently weighed in on the company. Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research note on Friday, April 24th. Barclays lifted their price target on Alarm.com from $50.00 to $55.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. JPMorgan Chase & Co. decreased their target price on Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a research report on Wednesday, February 18th. Finally, Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 25th. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Alarm.com presently has an average rating of “Reduce” and an average target price of $47.50.

Alarm.com Stock Up 0.8%

Alarm.com stock opened at $45.37 on Friday. 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 1-year low of $41.49 and a 1-year high of $59.98. The company has a market cap of $2.24 billion, a PE ratio of 18.83, a price-to-earnings-growth ratio of 1.51 and a beta of 0.79. The stock’s 50 day moving average price is $44.37 and its 200 day moving average price is $47.61.

Alarm.com (NASDAQ:ALRM) last posted its quarterly earnings results on Thursday, May 7th. The software maker reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.05. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.The firm had revenue of $265.19 million for the quarter, compared to the consensus estimate of $250.94 million. During the same period in the previous year, the business earned $0.54 earnings per share. The company’s revenue for the quarter was up 11.1% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.810-2.810 EPS. On average, sell-side analysts predict that Alarm.com will post 2.34 EPS for the current fiscal year.

Insider Transactions at Alarm.com

In other Alarm.com news, insider Daniel Ramos sold 2,532 shares of the business’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $43.78, for a total transaction of $110,850.96. Following the sale, the insider directly owned 63,099 shares in the company, valued at approximately $2,762,474.22. The trade was a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 on Tuesday, May 26th. The stock was 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 in the company, valued at approximately $14,221,582.76. The trade was 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. Insiders have sold a total of 20,479 shares of company stock valued at $898,465 in the last three months. 4.80% of the stock is owned by company insiders.

Institutional Trading of Alarm.com

A number of institutional investors have recently bought and sold shares of ALRM. Optiver Holding B.V. purchased a new stake in shares of Alarm.com in the third quarter valued at $25,000. Covestor Ltd lifted its position in shares of Alarm.com by 67.3% in the fourth quarter. Covestor Ltd now owns 691 shares of the software maker’s stock valued at $35,000 after acquiring an additional 278 shares in the last quarter. Hantz Financial Services Inc. lifted its position in shares of Alarm.com by 2,637.9% in the third quarter. Hantz Financial Services Inc. now owns 794 shares of the software maker’s stock valued at $42,000 after acquiring an additional 765 shares in the last quarter. Financial Management Professionals Inc. purchased a new stake in shares of Alarm.com in the fourth quarter valued at $47,000. Finally, Strs Ohio purchased a new stake in shares of Alarm.com in the first quarter valued at $56,000. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

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.