Alarm.com (NASDAQ:ALRM) Hits New 12-Month High – Time to Buy?

Alarm.com Holdings, Inc. (NASDAQ:ALRM) reached a new 52-week high during trading on Wednesday. The stock traded as high as $68.09 and last traded at $67.8340, with a volume of 57,084 shares. The stock had previously closed at $65.46.

Analyst Upgrades and Downgrades

ALRM has been the topic of several research reports. Raymond James Financial restated a “strong-buy” rating and set a $65.00 price objective on shares of Alarm.com in a report on Friday, August 7th. JPMorgan Chase & Co. boosted their price objective on shares of Alarm.com from $40.00 to $50.00 and gave the company an “underweight” rating in a research note on Friday, October 30th. Wall Street Zen raised shares of Alarm.com from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Barclays upped their target price on 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, Zacks Research lowered shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $58.33.

Alarm.com Stock Up 3.6%

The firm has a market capitalization of $3.35 billion, a PE ratio of 29.94, a PEG ratio of 2.08 and a beta of 0.70. 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 stock has a 50 day simple moving average of $57.34 and a 200 day simple moving average of $50.24.

Alarm.com (NASDAQ:ALRM) last issued its earnings results on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.12. The firm 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 business’s revenue was up 9.2% on a year-over-year basis. During the same quarter last year, the business earned $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, sell-side analysts forecast that Alarm.com Holdings, Inc. will post 2.49 earnings per share for the current year.

Insiders Place Their Bets

In other Alarm.com news, CEO Stephen Trundle sold 50,000 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the completion of the sale, the chief executive officer directly owned 324,842 shares of the company’s stock, valued at approximately $18,733,638.14. This represents a 13.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Kevin Bradley sold 5,400 shares of Alarm.com 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 directly owned 78,222 shares in the company, valued at approximately $4,307,685.54. The trade was 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 Investors Weigh In On Alarm.com

Several institutional investors have recently made changes to their positions in ALRM. Dimensional Fund Advisors LP raised its stake 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 valued at $48,257,000 after acquiring an additional 11,624 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Alarm.com by 43.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker’s stock worth $33,654,000 after purchasing an additional 237,633 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Alarm.com during the second quarter worth $14,339,000. Principal Financial Group Inc. lifted its holdings in shares of Alarm.com by 5.2% in the 1st quarter. Principal Financial Group Inc. now owns 300,204 shares of the software maker’s stock valued at $12,966,000 after buying an additional 14,967 shares during the period. Finally, Centaurus Financial Inc. increased its holdings in shares of Alarm.com by 1.0% during the 1st quarter. Centaurus Financial Inc. now owns 271,841 shares of the software maker’s stock valued at $11,741,000 after purchasing an additional 2,782 shares in the last quarter. Institutional investors own 91.74% of the company’s stock.

Alarm.com Company Profile

Alarm.com Holdings, Inc develops cloud-based technology for connected security and smart automation. Its platform helps residential and commercial customers monitor and manage security systems, video cameras, access control, energy use, and other connected devices through mobile applications and web-based tools.

The company’s products and services are delivered primarily through a network of authorized service providers, including security dealers and integrators. Its offerings include intrusion detection, smart-home automation, video surveillance, commercial security and access management, energy management, and solutions designed for property managers and other business customers.

Founded in 2000 and headquartered in Vienna, Virginia, Alarm.com serves customers through service providers in the United States and international markets.