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

Alarm.com Holdings, Inc. (NASDAQ:ALRM) reached 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.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $65.00 price target on shares of Alarm.com in a research note on Friday, August 7th. Barclays increased their price objective on shares of Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a research report on Monday, August 10th. Weiss Ratings upgraded shares of Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 15th. Wall Street Zen raised shares of Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Finally, Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $55.00.

Alarm.com Stock Up 0.3%

The firm’s 50-day simple moving average is $56.29 and its 200 day simple moving average is $49.83. 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 has a market capitalization of $3.21 billion, a P/E ratio of 28.68, a PEG ratio of 2.04 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 for the quarter, beating the consensus estimate of $0.65 by $0.12. The company had revenue of $277.73 million during the quarter, compared to analysts’ expectations of $264.96 million. Alarm.com had a return on equity of 15.65% and a net margin of 11.11%. Alarm.com’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, research analysts expect that Alarm.com Holdings, Inc. will post 2.47 EPS for the current year.

Insider Buying and Selling

In other Alarm.com news, CFO Kevin Bradley sold 5,400 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total value of $297,378.00. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Stephen Trundle sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $57.67, for a total value 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. This trade represents a 13.34% 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 Trading of Alarm.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC bought a new position in shares of Alarm.com in the 2nd quarter valued at about $28,000. Allworth Financial LP raised its holdings in shares of Alarm.com by 435.5% in the 2nd quarter. Allworth Financial LP now owns 980 shares of the software maker’s stock valued at $46,000 after purchasing an additional 797 shares during the period. Farther Finance Advisors LLC raised its holdings in shares of Alarm.com by 661.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,066 shares of the software maker’s stock valued at $58,000 after purchasing an additional 926 shares during the period. Pacer Advisors Inc. lifted its stake in Alarm.com by 21.2% in the 1st quarter. Pacer Advisors Inc. now owns 2,312 shares of the software maker’s stock valued at $100,000 after purchasing an additional 404 shares during the last quarter. Finally, Versant Capital Management Inc lifted its stake in Alarm.com by 261.0% in the 2nd quarter. Versant Capital Management Inc now owns 2,231 shares of the software maker’s stock valued at $104,000 after purchasing an additional 1,613 shares during the last quarter. 91.74% of the stock is owned by institutional investors.

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.