Alarm.com (NASDAQ:ALRM) Shares Gap Down – Here’s Why

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) gapped down before the market opened on Wednesday . The stock had previously closed at $48.50, but opened at $45.43. Alarm.com shares last traded at $45.40, with a volume of 15,171 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ALRM. Barclays lowered their target price on shares of Alarm.com from $60.00 to $56.00 and set an “equal weight” rating for the company in a research note on Friday, November 7th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. Finally, Zacks Research cut shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Alarm.com currently has a consensus rating of “Hold” and an average price target of $64.67.

Alarm.com Price Performance

The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.92 and a current ratio of 2.06. The company has a market cap of $2.32 billion, a price-to-earnings ratio of 19.67, a PEG ratio of 1.78 and a beta of 0.79. The company’s 50 day moving average price is $51.17 and its 200-day moving average price is $52.63.

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

Insider Activity at Alarm.com

In other Alarm.com news, insider Daniel Kerzner sold 20,004 shares of Alarm.com stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $50.29, for a total value of $1,006,001.16. Following the completion of the sale, the insider directly owned 52,000 shares in the company, valued at $2,615,080. The trade was a 27.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen C. Evans sold 1,154 shares of Alarm.com stock in a transaction on Friday, December 12th. The shares were sold at an average price of $52.27, for a total transaction of $60,319.58. Following the completion of the sale, the director directly owned 6,123 shares of the company’s stock, valued at approximately $320,049.21. The trade was a 15.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have bought 26,000 shares of company stock worth $1,257,321 and have sold 56,158 shares worth $2,866,689. 5.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Alarm.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Cresset Asset Management LLC acquired a new position in shares of Alarm.com during the second quarter valued at about $2,263,000. AlphaQuest LLC bought a new position in Alarm.com during the third quarter valued at about $2,313,000. Hussman Strategic Advisors Inc. acquired a new position in Alarm.com in the 3rd quarter valued at approximately $2,229,000. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Alarm.com in the 2nd quarter worth approximately $210,000. Finally, Geode Capital Management LLC grew its holdings in shares of Alarm.com by 1.3% during the 2nd quarter. Geode Capital Management LLC now owns 1,202,312 shares of the software maker’s stock worth $68,024,000 after purchasing an additional 15,821 shares in the last quarter. 91.74% of the stock is currently 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.