Alarm.com (NASDAQ:ALRM) Shares Cross Below 50-Day Moving Average Following Analyst Downgrade

Alarm.com Holdings, Inc. (NASDAQ:ALRM)’s share price passed below its 50-day moving average during trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock has a 50-day moving average of $55.61 and traded as low as $55.53. Alarm.com shares last traded at $56.11, with a volume of 289,326 shares.

Several other research analysts have also weighed in on the company. Raymond James Financial reissued a “strong-buy” rating and issued a $65.00 price objective on shares of Alarm.com in a research report on Friday, August 7th. Weiss Ratings upgraded shares of Alarm.com from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. Wall Street Zen upgraded Alarm.com from a “hold” rating to a “buy” rating in a report on Sunday, August 16th. Finally, Barclays raised their price target on shares of Alarm.com from $55.00 to $60.00 and gave the company an “equal weight” rating in a research report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $55.00.

Insiders Place Their Bets

In other news, CFO Kevin Bradley sold 5,400 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The shares were 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 approximately $4,307,685.54. This trade represents a 6.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Stephen Trundle sold 50,000 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the transaction, the chief executive officer owned 324,842 shares of the company’s stock, valued at $18,733,638.14. This trade represents a 13.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pacer Advisors Inc. boosted its stake in Alarm.com by 21.2% in the first quarter. Pacer Advisors Inc. now owns 2,312 shares of the software maker’s stock worth $100,000 after buying an additional 404 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in Alarm.com in the 2nd quarter worth $28,000. Allworth Financial LP raised its position in Alarm.com by 435.5% during 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 last quarter. Argos Wealth Advisors LLC increased its stake in shares of Alarm.com by 6.8% during the first quarter. Argos Wealth Advisors LLC now owns 13,375 shares of the software maker’s stock valued at $578,000 after buying an additional 852 shares during the period. Finally, Farther Finance Advisors LLC increased its position in Alarm.com by 661.4% during 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. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

Alarm.com Price Performance

The firm’s 50-day moving average is $55.61 and its 200-day moving average is $49.60. The company has a quick ratio of 4.38, a current ratio of 4.96 and a debt-to-equity ratio of 0.57. The company has a market cap of $2.73 billion, a PE ratio of 24.45, a PEG ratio of 1.74 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM) last released its earnings results on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, beating analysts’ consensus estimates 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%.The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities analysts anticipate that Alarm.com Holdings, Inc. will post 2.47 EPS for the current year.

About Alarm.com

Alarm.com Holdings, Inc (NASDAQ: ALRM) provides cloud-based solutions for intelligent security, automation and property management. Its platform connects security systems, cameras, access-control equipment, sensors and other smart devices, allowing users to monitor and manage properties through mobile applications and web-based tools.

The company’s offerings include professionally monitored residential and commercial security, video surveillance and analytics, smart home automation, energy management, access control and solutions for multifamily and other property-management applications.