Alarm.com (NASDAQ:ALRM) Reaches New 12-Month High – Still a Buy?

Alarm.com Holdings, Inc. (NASDAQ:ALRM) shares reached a new 52-week high on Wednesday. The company traded as high as $58.86 and last traded at $58.68, with a volume of 515,393 shares changing hands. The stock had previously closed at $57.46.

Analyst Ratings Changes

ALRM has been the topic of a number of analyst reports. Wall Street Zen upgraded Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Weiss Ratings raised Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 15th. Raymond James Financial reiterated a “strong-buy” rating and set a $65.00 price target on shares of Alarm.com in a research report on Friday, August 7th. Zacks Research lowered Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Finally, 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. One analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $55.00.

Alarm.com Price 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 stock’s 50-day moving average is $55.95 and its two-hundred day moving average is $50.62. The stock has a market cap of $3.09 billion, a PE ratio of 23.91, a PEG ratio of 1.89 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM) last issued its quarterly 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 business 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 quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities analysts predict that Alarm.com Holdings, Inc. will post 2.47 earnings per share for the current year.

Insider Buying and Selling at Alarm.com

In other Alarm.com news, CEO Stephen Trundle sold 50,000 shares of the firm’s stock in a transaction dated 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 owned 324,842 shares of the company’s stock, valued at approximately $18,733,638.14. This trade represents a 13.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kevin Bradley sold 5,400 shares of Alarm.com stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total value of $297,378.00. Following the sale, the chief financial officer owned 78,222 shares in the company, valued at $4,307,685.54. This trade represents a 6.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 4.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP raised its holdings in 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 worth $48,257,000 after purchasing an additional 11,624 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of Alarm.com by 43.9% in the first 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 raised its stake in shares of Alarm.com by 85.3% during the 1st quarter. SG Americas Securities LLC now owns 483,486 shares of the software maker’s stock worth $20,882,000 after buying an additional 222,563 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Alarm.com in the second quarter valued at about $14,339,000. Finally, Principal Financial Group Inc. grew its position in shares of Alarm.com by 5.2% in the first quarter. Principal Financial Group Inc. now owns 300,204 shares of the software maker’s stock valued at $12,966,000 after purchasing an additional 14,967 shares during the last quarter. Hedge funds and other institutional investors own 91.74% of the company’s stock.

About Alarm.com

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.