Alarm.com (NASDAQ:ALRM) Hits New 1-Year Low Following Analyst Downgrade

Alarm.com Holdings, Inc. (NASDAQ:ALRM) reached a new 52-week low on Wednesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $42.90 and last traded at $42.5950, with a volume of 52807 shares trading hands. The stock had previously closed at $43.53.

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

Insider Buying and Selling at Alarm.com

In related news, CFO Kevin Christopher Bradley sold 1,510 shares of the 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 in the company, valued at $2,369,569.62. This represents a 2.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 5.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Alarm.com

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

Alarm.com Trading Up 0.8%

The stock has a market cap of $2.15 billion, a P/E ratio of 17.57, a price-to-earnings-growth ratio of 1.50 and a beta of 0.80. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.78 and a current ratio of 1.92. The firm’s fifty day simple moving average is $47.31 and its 200-day simple moving average is $50.19.

Alarm.com (NASDAQ:ALRM) last posted its quarterly earnings data on Thursday, February 19th. The software maker reported $0.72 EPS for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06. Alarm.com had a net margin of 13.11% and a return on equity of 14.79%. The company had revenue of $261.66 million for the quarter, compared to analyst estimates of $250.75 million. During the same period in the prior year, the firm posted $0.58 EPS. The company’s quarterly revenue was up 8.1% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. Equities research analysts expect that Alarm.com Holdings, Inc. will post 1.64 EPS for the current fiscal year.

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.