Zacks Research Downgrades Alarm.com (NASDAQ:ALRM) to Hold

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

A number of other analysts have also weighed in on ALRM. Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research note on Tuesday, January 27th. JPMorgan Chase & Co. decreased their price objective on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating on the stock in a report on Wednesday, February 18th. Finally, Barclays lowered their price objective on shares of Alarm.com from $56.00 to $50.00 and set an “equal weight” rating for the company in a research report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $57.00.

Alarm.com Stock Up 0.8%

Shares of ALRM opened at $43.21 on Wednesday. The company has a market capitalization of $2.15 billion, a P/E ratio of 17.57, a PEG ratio of 1.50 and a beta of 0.80. Alarm.com has a one year low of $42.26 and a one year high of $60.76. The business’s 50 day simple moving average is $47.31 and its 200-day simple moving average is $50.19. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.92 and a quick ratio of 1.78.

Alarm.com (NASDAQ:ALRM) last released its quarterly earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06. The firm had revenue of $261.66 million during the quarter, compared to analysts’ expectations of $250.75 million. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.The business’s revenue was up 8.1% on a year-over-year basis. During the same period last year, the firm posted $0.58 EPS. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. As a group, sell-side analysts predict that Alarm.com will post 1.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Kevin Christopher Bradley sold 1,510 shares of Alarm.com stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total value of $69,414.70. Following the completion of the sale, the chief financial officer directly owned 51,546 shares of the company’s stock, valued at approximately $2,369,569.62. This trade represents a 2.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 5.80% of the company’s stock.

Hedge Funds Weigh In On Alarm.com

Hedge funds have recently added to or reduced their stakes in the company. AlphaQuest LLC acquired a new position in Alarm.com during the 3rd quarter valued at about $2,313,000. Cresset Asset Management LLC acquired a new stake in shares of Alarm.com during the 2nd quarter worth approximately $2,263,000. Hussman Strategic Advisors Inc. acquired a new stake in shares of Alarm.com during the 3rd quarter worth approximately $2,229,000. Public Sector Pension Investment Board raised its stake in shares of Alarm.com by 7.3% during the third quarter. Public Sector Pension Investment Board now owns 348,186 shares of the software maker’s stock worth $18,482,000 after buying an additional 23,675 shares during the last quarter. Finally, LSV Asset Management raised its stake in shares of Alarm.com by 160.0% during the third quarter. LSV Asset Management now owns 61,100 shares of the software maker’s stock worth $3,243,000 after buying an additional 37,600 shares during the last quarter. Institutional investors own 91.74% of the company’s stock.

Alarm.com Company Profile

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.