Alarm.com (NASDAQ:ALRM) Raised to Buy at Wall Street Zen

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

Several other research analysts also recently commented on the stock. Raymond James Financial reissued a “strong-buy” rating and set a $65.00 price objective on shares of Alarm.com in a report on Friday, August 7th. Weiss Ratings upgraded Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Finally, Barclays increased their price target on Alarm.com from $55.00 to $60.00 and gave the company an “equal weight” rating in a research note on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Alarm.com presently has a consensus rating of “Hold” and an average price target of $55.00.

Alarm.com Price Performance

NASDAQ ALRM opened at $55.00 on Friday. The stock has a market cap of $2.72 billion, a price-to-earnings ratio of 24.34, a PEG ratio of 1.86 and a beta of 0.76. The company has a current ratio of 4.96, a quick ratio of 4.38 and a debt-to-equity ratio of 0.57. The company’s 50 day moving average is $50.78 and its two-hundred day moving average is $47.37. Alarm.com has a 12 month low of $41.49 and a 12 month high of $59.53.

Alarm.com (NASDAQ:ALRM) last issued its quarterly earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.65 by $0.12. The business had revenue of $277.73 million during the quarter, compared to analyst estimates of $264.96 million. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%.Alarm.com’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, research analysts anticipate that Alarm.com will post 2.34 earnings per share for the current year.

Insider Buying and Selling at Alarm.com

In related news, insider Daniel Kerzner sold 3,944 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $172,668.32. Following the completion of the transaction, the insider owned 101,141 shares of the company’s stock, valued at approximately $4,427,952.98. This trade represents a 3.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Daniel Ramos sold 2,000 shares of Alarm.com stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $46.50, for a total value of $93,000.00. Following the completion of the transaction, the insider owned 53,099 shares of the company’s stock, valued at approximately $2,469,103.50. This represents a 3.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 30,873 shares of company stock valued at $1,446,228 over the last quarter. 4.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alarm.com

Institutional investors have recently modified their holdings of the stock. Covestor Ltd boosted its holdings in shares of Alarm.com by 67.3% in the 4th quarter. Covestor Ltd now owns 691 shares of the software maker’s stock worth $35,000 after purchasing an additional 278 shares during the period. Financial Management Professionals Inc. purchased a new stake in Alarm.com during the 4th quarter valued at $47,000. Strs Ohio bought a new stake in Alarm.com in the first quarter worth $56,000. Kemnay Advisory Services Inc. bought a new stake in Alarm.com in the fourth quarter worth $59,000. Finally, Danske Bank A S bought a new stake in shares of Alarm.com in the 4th quarter worth about $92,000. 91.74% of the stock is owned by 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.