Alarm.com (NASDAQ:ALRM) Shares Break Below 50 Day Moving Average Following Analyst Downgrade

Alarm.com Holdings, Inc. (NASDAQ:ALRM) shares crossed below its 50-day moving average during trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock has a 50-day moving average of $55.61 and traded as low as $55.53. Alarm.com shares last traded at $56.11, with a volume of 289,326 shares.

A number of other equities research analysts have also recently commented on ALRM. Barclays raised their price target on shares of Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a report on Monday, August 10th. Raymond James Financial reiterated 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 raised shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Finally, Wall Street Zen raised Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. One research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $55.00.

Insider Transactions at Alarm.com

In related news, CFO Kevin Bradley sold 5,400 shares of the firm’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $55.07, for a total value of $297,378.00. Following the transaction, the chief financial officer 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Stephen Trundle sold 50,000 shares of Alarm.com stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $57.67, for a total value of $2,883,500.00. Following the transaction, the chief executive officer owned 324,842 shares of the company’s stock, valued at $18,733,638.14. This trade represents a 13.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Integrated Wealth Concepts LLC bought a new position in Alarm.com during the 2nd quarter valued at $28,000. Allworth Financial LP boosted its holdings in Alarm.com by 435.5% during the 2nd quarter. Allworth Financial LP now owns 980 shares of the software maker’s stock worth $46,000 after acquiring an additional 797 shares during the last quarter. Farther Finance Advisors LLC grew its stake in shares of Alarm.com by 661.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,066 shares of the software maker’s stock worth $58,000 after acquiring an additional 926 shares in the last quarter. Versant Capital Management Inc grew its stake in shares of Alarm.com by 261.0% in the 2nd quarter. Versant Capital Management Inc now owns 2,231 shares of the software maker’s stock worth $104,000 after acquiring an additional 1,613 shares in the last quarter. Finally, Pacer Advisors Inc. raised its holdings in shares of Alarm.com by 21.2% in the first quarter. Pacer Advisors Inc. now owns 2,312 shares of the software maker’s stock valued at $100,000 after purchasing an additional 404 shares during the last quarter. Hedge funds and other institutional investors own 91.74% of the company’s stock.

Alarm.com Stock Performance

The company has a debt-to-equity ratio of 0.57, a current ratio of 4.96 and a quick ratio of 4.38. The company’s fifty day moving average price is $55.61 and its 200 day moving average price is $49.60. The company has a market cap of $2.73 billion, a PE ratio of 21.96, a P/E/G ratio of 1.74 and a beta of 0.76.

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

About Alarm.com

Alarm.com Holdings, Inc (NASDAQ: ALRM) provides cloud-based solutions for intelligent security, automation and property management. Its platform connects security systems, cameras, access-control equipment, sensors and other smart devices, allowing users to monitor and manage properties through mobile applications and web-based tools.

The company’s offerings include professionally monitored residential and commercial security, video surveillance and analytics, smart home automation, energy management, access control and solutions for multifamily and other property-management applications.