Alarm.com (NASDAQ:ALRM) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Alarm.com (NASDAQ:ALRM) from a hold rating to a strong-buy rating in a research report sent to investors on Wednesday,Zacks.com reports.

Several other research analysts also recently commented on ALRM. Wall Street Zen raised shares of Alarm.com from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Barclays raised their price target on shares of Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a report on Monday, August 10th. Weiss Ratings raised shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. Finally, Raymond James Financial restated a “strong-buy” rating and set a $65.00 price target on shares of Alarm.com in a report on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $55.00.

Alarm.com Stock Performance

NASDAQ ALRM opened at $57.06 on Wednesday. The company has a 50-day simple moving average of $51.42 and a two-hundred day simple moving average of $47.54. The company has a quick ratio of 4.38, a current ratio of 4.96 and a debt-to-equity ratio of 0.57. Alarm.com has a 12-month low of $41.49 and a 12-month high of $59.53. The firm has a market cap of $2.82 billion, a price-to-earnings ratio of 25.25, a PEG ratio of 1.82 and a beta of 0.76.

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. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%.The firm had revenue of $277.73 million for the quarter, compared to analysts’ expectations of $264.96 million. During the same period last year, the firm earned $0.60 earnings per share. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities analysts forecast that Alarm.com will post 2.47 EPS for the current year.

Insider Transactions at Alarm.com

In other news, CFO Kevin Christopher Bradley sold 5,400 shares of the company’s stock in a transaction dated 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 of the company’s stock, valued at $4,307,685.54. This represents a 6.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Daniel Kerzner sold 3,944 shares of Alarm.com stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $43.78, for a total transaction of $172,668.32. Following the transaction, the insider directly owned 101,141 shares of the company’s stock, valued at approximately $4,427,952.98. This trade represents a 3.75% decrease in their ownership of the stock. 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 30,873 shares of company stock valued at $1,446,228 in the last three months. Company insiders own 4.80% of the company’s stock.

Institutional Trading of Alarm.com

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

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.