Alarm.com (NASDAQ:ALRM) Hits New 52-Week High – Should You Buy?

Alarm.com Holdings, Inc. (NASDAQ:ALRM) shares reached a new 52-week high during trading on Thursday. The stock traded as high as $58.50 and last traded at $58.1750, with a volume of 86,921 shares trading hands. The stock had previously closed at $56.68.

Analyst Ratings Changes

A number of brokerages recently weighed in on ALRM. Wall Street Zen raised Alarm.com from a “hold” rating to a “buy” rating in a report on Sunday, August 16th. Barclays raised their target price on Alarm.com from $55.00 to $60.00 and gave the company an “equal weight” rating in a report on Monday, August 10th. Zacks Research lowered shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 6th. Raymond James Financial restated a “strong-buy” rating and set a $65.00 target price on shares of Alarm.com in a research report on Friday, August 7th. Finally, Weiss Ratings raised shares of Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Alarm.com currently has an average rating of “Hold” and a consensus price target of $55.00.

Alarm.com Stock Performance

The stock’s 50-day moving average price is $55.67 and its 200-day moving average price is $50.11. The company has a market capitalization of $2.84 billion, a price-to-earnings ratio of 25.39, a P/E/G ratio of 1.83 and a beta of 0.76. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96.

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 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 business had revenue of $277.73 million for the quarter, compared to analysts’ expectations of $264.96 million. During the same quarter in the prior year, the firm posted $0.60 EPS. The company’s revenue was up 9.2% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, equities research analysts expect that Alarm.com Holdings, Inc. will post 2.47 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Stephen Trundle sold 50,000 shares of Alarm.com stock in a transaction on Monday, August 24th. The stock was sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the completion of the transaction, the chief executive officer owned 324,842 shares of the company’s stock, valued at $18,733,638.14. The trade was a 13.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Kevin Bradley sold 5,400 shares of the business’s stock in a transaction dated 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 owned 78,222 shares in the company, valued at $4,307,685.54. This represents a 6.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 4.80% of the company’s stock.

Institutional Trading of Alarm.com

Institutional investors and hedge funds have recently modified their holdings of the business. Bank of New York Mellon Corp purchased a new position in shares of Alarm.com during the 2nd quarter worth approximately $14,339,000. Arrowstreet Capital Limited Partnership lifted its stake in Alarm.com by 43.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker’s stock valued at $33,654,000 after buying an additional 237,633 shares in the last quarter. SG Americas Securities LLC grew its holdings in Alarm.com by 85.3% during the 1st quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker’s stock valued at $20,882,000 after buying an additional 222,563 shares during the last quarter. Evanson Financial LLC acquired a new stake in Alarm.com during the 2nd quarter valued at $7,168,000. Finally, Winmill & CO. Inc. purchased a new position in Alarm.com during the second quarter worth $5,891,000. Hedge funds and other institutional investors own 91.74% of the company’s stock.

Alarm.com Company Profile

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.