Alarm.com (NASDAQ:ALRM) Sets New 52-Week Low – Time to Sell?

Alarm.com Holdings, Inc. (NASDAQ:ALRM) shares reached a new 52-week low on Tuesday . The stock traded as low as $46.55 and last traded at $46.9850, with a volume of 140790 shares changing hands. The stock had previously closed at $48.50.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on ALRM shares. Zacks Research downgraded shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. Finally, Barclays dropped their price target on Alarm.com from $60.00 to $56.00 and set an “equal weight” rating on the stock in a research report on Friday, November 7th. One analyst has rated the stock with a Strong Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $64.67.

Alarm.com Stock Down 6.0%

The company has a 50 day moving average of $51.31 and a 200-day moving average of $52.70. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.06 and a quick ratio of 1.92. The company has a market cap of $2.27 billion, a P/E ratio of 19.32, a price-to-earnings-growth ratio of 1.79 and a beta of 0.79.

Alarm.com (NASDAQ:ALRM) last issued its quarterly earnings results on Thursday, November 6th. The software maker reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.14. The firm had revenue of $256.40 million during the quarter, compared to the consensus estimate of $251.14 million. Alarm.com had a return on equity of 14.26% and a net margin of 12.92%.The company’s revenue for the quarter was up 6.6% on a year-over-year basis. During the same quarter last year, the company posted $0.62 EPS. Alarm.com has set its FY 2025 guidance at 2.530-2.530 EPS. On average, equities analysts predict that Alarm.com Holdings, Inc. will post 1.64 earnings per share for the current year.

Insider Transactions at Alarm.com

In related news, CEO Stephen Trundle bought 10,000 shares of the stock in a transaction dated Thursday, November 20th. The stock was bought at an average price of $48.07 per share, with a total value of $480,700.00. Following the purchase, the chief executive officer owned 1,315,343 shares in the company, valued at approximately $63,228,538.01. The trade was a 0.77% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Stephen C. Evans sold 1,154 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $52.27, for a total value of $60,319.58. Following the transaction, the director owned 6,123 shares in the company, valued at approximately $320,049.21. The trade was a 15.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders bought 26,000 shares of company stock worth $1,257,321 and sold 56,158 shares worth $2,866,689. Insiders own 5.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Optiver Holding B.V. bought a new stake in Alarm.com in the 3rd quarter worth $25,000. Strengthening Families & Communities LLC purchased a new stake in Alarm.com in the 3rd quarter worth approximately $27,000. Elevation Point Wealth Partners LLC purchased a new position in shares of Alarm.com during the second quarter valued at approximately $43,000. Hantz Financial Services Inc. boosted its holdings in Alarm.com by 2,637.9% in the third quarter. Hantz Financial Services Inc. now owns 794 shares of the software maker’s stock valued at $42,000 after acquiring an additional 765 shares in the last quarter. Finally, Pilgrim Partners Asia Pte Ltd purchased a new position in Alarm.com during the 3rd quarter valued at $46,000. 91.74% of the stock is owned by hedge funds and other institutional investors.

Alarm.com Company Profile

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.