Alarm.com (NASDAQ:ALRM) Lowered to “Hold” Rating by Wall Street Zen

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

ALRM has been the subject of a number of other reports. Zacks Research cut shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, March 25th. Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research report on Friday, April 24th. Finally, Barclays increased their price target on shares of Alarm.com from $50.00 to $55.00 and gave the company an “equal weight” rating in a report on Friday, May 8th. Three equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus price target of $47.50.

Alarm.com Price Performance

NASDAQ ALRM opened at $44.38 on Friday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.55 and a current ratio of 5.16. The company has a market capitalization of $2.20 billion, a P/E ratio of 18.42, a P/E/G ratio of 1.49 and a beta of 0.79. Alarm.com has a one year low of $41.49 and a one year high of $59.53. The stock has a 50 day moving average price of $44.77 and a 200-day moving average price of $47.27.

Alarm.com (NASDAQ:ALRM) last posted its 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 net margin of 12.36% and a return on equity of 14.99%. The firm had revenue of $265.19 million during the quarter, compared to analyst estimates of $250.94 million. During the same period last year, the firm posted $0.54 earnings per share. Alarm.com’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. As a group, equities analysts predict that Alarm.com will post 2.34 EPS for the current fiscal year.

Insider Activity at Alarm.com

In other news, CFO Kevin Christopher Bradley sold 2,200 shares of Alarm.com stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $46.15, for a total transaction of $101,530.00. Following the completion of the sale, the chief financial officer owned 84,346 shares of the company’s stock, valued at approximately $3,892,567.90. The trade was a 2.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Daniel Kerzner sold 3,944 shares of Alarm.com stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total transaction of $172,668.32. Following the sale, the insider directly owned 101,141 shares of the company’s stock, valued at $4,427,952.98. This represents a 3.75% decrease in their position. 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. In the last three months, insiders sold 31,169 shares of company stock valued at $1,393,420. 4.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Alarm.com

Several hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System grew its position in shares of Alarm.com by 0.5% during the 2nd 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 in the last quarter. Cresset Asset Management LLC increased its stake in shares of Alarm.com by 0.6% during the third quarter. Cresset Asset Management LLC now owns 40,234 shares of the software maker’s stock valued at $2,136,000 after buying an additional 228 shares during the period. GAMMA Investing LLC raised its holdings in shares of Alarm.com by 22.4% in the fourth quarter. GAMMA Investing LLC now owns 1,361 shares of the software maker’s stock valued at $69,000 after acquiring an additional 249 shares in the last quarter. Stifel Financial Corp raised its holdings 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 valued at $723,000 after acquiring an additional 254 shares in the last quarter. Finally, ProShare Advisors LLC lifted its stake in Alarm.com by 3.0% in the fourth quarter. ProShare Advisors LLC now owns 9,284 shares of the software maker’s stock worth $474,000 after acquiring an additional 269 shares during the period. 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.