Wall Street Zen Upgrades Alarm.com (NASDAQ:ALRM) to “Buy”

Alarm.com (NASDAQ:ALRM) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a report issued on Sunday.

A number of other research analysts have also weighed in on ALRM. Zacks Research lowered Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 25th. Barclays upped their target price on Alarm.com from $50.00 to $55.00 and gave the company an “equal weight” rating in a research report on Friday, May 8th. Finally, Weiss Ratings upgraded shares of Alarm.com from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Alarm.com has an average rating of “Reduce” and an average target price of $47.50.

Alarm.com Stock Performance

Shares of ALRM traded down $0.19 during trading hours on Friday, reaching $51.50. 354,637 shares of the company traded hands, compared to its average volume of 598,520. The company has a quick ratio of 4.55, a current ratio of 5.16 and a debt-to-equity ratio of 0.57. The business has a fifty day moving average price of $45.67 and a 200-day moving average price of $46.81. Alarm.com has a 12-month low of $41.49 and a 12-month high of $59.53. The stock has a market capitalization of $2.55 billion, a P/E ratio of 21.37, a P/E/G ratio of 1.73 and a beta of 0.77.

Alarm.com (NASDAQ:ALRM) last issued its earnings results on Thursday, May 7th. The software maker reported $0.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.60 by $0.05. Alarm.com had a return on equity of 14.99% and a net margin of 12.36%.The company had revenue of $265.19 million during the quarter, compared to analyst estimates of $250.94 million. During the same quarter last year, the business posted $0.54 EPS. The firm’s quarterly revenue was up 11.1% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.810-2.810 EPS. Equities analysts anticipate that Alarm.com will post 2.34 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Daniel Ramos sold 2,000 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $46.50, for a total value of $93,000.00. Following the completion of the transaction, the insider owned 53,099 shares of the company’s stock, valued at $2,469,103.50. The trade was a 3.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Daniel Kerzner sold 3,944 shares of the company’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $43.78, for a total value of $172,668.32. Following the completion of the sale, the insider owned 101,141 shares in the company, valued at $4,427,952.98. The trade was a 3.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 31,893 shares of company stock valued at $1,428,505 over the last quarter. 4.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Amundi lifted its stake in shares of Alarm.com by 6.8% in the 1st quarter. Amundi now owns 17,532 shares of the software maker’s stock valued at $920,000 after purchasing an additional 1,113 shares during the period. AQR Capital Management LLC grew its position in Alarm.com by 7.8% during the first quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker’s stock valued at $3,284,000 after buying an additional 4,246 shares during the period. Woodline Partners LP acquired a new stake in Alarm.com during the first quarter valued at $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Alarm.com by 4.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,200 shares of the software maker’s stock valued at $7,301,000 after buying an additional 6,080 shares in the last quarter. Finally, Jane Street Group LLC increased its holdings in Alarm.com by 610.0% in the first quarter. Jane Street Group LLC now owns 114,715 shares of the software maker’s stock valued at $6,384,000 after buying an additional 98,557 shares in the last quarter. 91.74% of the stock is owned by institutional investors and hedge funds.

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.