Alarm.com (NASDAQ:ALRM) Upgraded by Zacks Research to “Strong-Buy” Rating

Alarm.com (NASDAQ:ALRM) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday,Zacks.com reports.

Other equities analysts have also issued research reports about the company. Weiss Ratings raised Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Raymond James Financial reaffirmed a “strong-buy” rating and set a $65.00 price target on shares of Alarm.com in a report on Friday, August 7th. Barclays lifted their price target on shares of Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a research note on Monday, August 10th. Finally, Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Two investment analysts have rated the stock with a Strong Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $55.00.

Alarm.com Trading Down 0.6%

NASDAQ:ALRM opened at $57.06 on Wednesday. The firm has a market capitalization of $2.82 billion, a P/E ratio of 25.25, a PEG ratio of 1.82 and a beta of 0.76. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.96 and a quick ratio of 4.38. Alarm.com has a one year low of $41.49 and a one year high of $59.53. The company’s 50-day simple moving average is $51.42 and its 200 day simple moving average is $47.54.

Alarm.com (NASDAQ:ALRM) last released its earnings results on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.65 by $0.12. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%.The firm had revenue of $277.73 million for the quarter, compared to analysts’ expectations of $264.96 million. During the same period in the prior year, the firm posted $0.60 earnings per share. The company’s quarterly revenue was up 9.2% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, analysts forecast that Alarm.com will post 2.47 EPS for the current fiscal year.

Insider Activity

In other Alarm.com news, CEO Stephen Trundle sold 6,073 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total value of $265,875.94. Following the completion of the transaction, the chief executive officer directly owned 324,842 shares in the company, valued at $14,221,582.76. This represents a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Christopher Bradley sold 5,400 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total transaction of $297,378.00. Following the completion of the sale, the chief financial officer directly owned 78,222 shares of the company’s stock, valued at approximately $4,307,685.54. This trade represents a 6.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 30,873 shares of company stock worth $1,446,228 in the last quarter. 4.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ALRM. Vanguard Group Inc. increased its stake in Alarm.com by 0.9% in the 4th 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 lifted its position in shares of Alarm.com by 3.0% in the second quarter. Disciplined Growth Investors Inc. MN now owns 3,491,824 shares of the software maker’s stock valued at $197,532,000 after acquiring an additional 102,481 shares in the last quarter. Bank of Montreal Can boosted its stake in shares of Alarm.com by 625.1% in the fourth quarter. Bank of Montreal Can now owns 2,231,227 shares of the software maker’s stock worth $113,837,000 after acquiring an additional 1,923,525 shares during the period. Geode Capital Management LLC boosted its stake in shares of Alarm.com by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 1,219,732 shares of the software maker’s stock worth $62,239,000 after acquiring an additional 7,454 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of Alarm.com by 1.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,117,359 shares of the software maker’s stock worth $48,257,000 after purchasing an additional 11,624 shares in the last quarter. Hedge funds and other institutional investors own 91.74% of the company’s stock.

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.