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

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) hit a new 52-week high during mid-day trading on Tuesday. The company traded as high as $64.99 and last traded at $64.81, with a volume of 424,639 shares. The stock had previously closed at $64.59.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Barclays raised their price target on shares of Alarm.com from $55.00 to $60.00 and gave the company an “equal weight” rating in a report on Monday, August 10th. Raymond James Financial reaffirmed 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 upgraded Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 15th. Wall Street Zen raised Alarm.com from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Finally, Zacks Research lowered Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $55.00.

Alarm.com Stock Performance

The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96. The company has a market cap of $3.21 billion, a price-to-earnings ratio of 28.68, a PEG ratio of 2.04 and a beta of 0.76. The firm’s 50-day moving average price is $56.29 and its 200 day moving average price is $49.83.

Alarm.com (NASDAQ:ALRM) last announced its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 for the quarter was up 9.2% on a year-over-year basis. During the same period last year, the firm earned $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, sell-side analysts anticipate that Alarm.com Holdings, Inc. will post 2.47 EPS for the current year.

Insider Transactions at Alarm.com

In related news, CFO Kevin Bradley sold 5,400 shares of the stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $55.07, for a total value of $297,378.00. Following the sale, the chief financial officer directly owned 78,222 shares in the company, valued at $4,307,685.54. This trade represents a 6.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Stephen Trundle sold 50,000 shares of Alarm.com stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 324,842 shares in the company, valued at $18,733,638.14. The trade was a 13.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 4.80% of the company’s stock.

Hedge Funds Weigh In On Alarm.com

Institutional investors and hedge funds have recently made changes to their positions in the company. Cardinal Capital Management raised its stake in Alarm.com by 4.7% during the 3rd quarter. Cardinal Capital Management now owns 39,080 shares of the software maker’s stock worth $2,129,000 after buying an additional 1,767 shares during the period. Nisa Investment Advisors LLC grew its stake in Alarm.com by 61.8% in the third quarter. Nisa Investment Advisors LLC now owns 2,408 shares of the software maker’s stock valued at $131,000 after acquiring an additional 920 shares during the period. Robeco Institutional Asset Management B.V. bought a new stake in shares of Alarm.com in the third quarter worth about $206,000. Abel Hall LLC increased its holdings in shares of Alarm.com by 6.3% in the third quarter. Abel Hall LLC now owns 4,725 shares of the software maker’s stock worth $257,000 after acquiring an additional 281 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC bought a new stake in shares of Alarm.com in the third quarter worth about $706,000. Institutional investors and hedge funds 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.