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 trading on Wednesday. The company traded as high as $68.09 and last traded at $67.8340, with a volume of 57,084 shares trading hands. The stock had previously closed at $65.46.

Analyst Ratings Changes

A number of analysts have recently weighed in on ALRM shares. Weiss Ratings upgraded Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 15th. Wall Street Zen raised Alarm.com from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Barclays lifted their price target 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. Raymond James Financial reiterated a “strong-buy” rating and issued a $65.00 target price on shares of Alarm.com in a report on Friday, August 7th. Finally, Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 6th. One investment 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 MarketBeat.com, Alarm.com has a consensus rating of “Hold” and a consensus price target of $58.33.

Alarm.com Price Performance

The company has a current ratio of 4.96, a quick ratio of 4.38 and a debt-to-equity ratio of 0.57. The company has a 50 day moving average of $57.34 and a 200-day moving average of $50.24. The firm has a market capitalization of $3.35 billion, a P/E ratio of 29.94, a P/E/G ratio of 2.08 and a beta of 0.70.

Alarm.com (NASDAQ:ALRM) last issued its quarterly earnings data on Thursday, August 6th. The software maker reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.12. The business had revenue of $277.73 million during the quarter, compared to analysts’ expectations of $264.96 million. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The business’s revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.60 EPS. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, sell-side analysts predict that Alarm.com Holdings, Inc. will post 2.49 EPS for the current year.

Insider Buying and Selling

In other Alarm.com news, CEO Stephen Trundle sold 50,000 shares of the company’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the completion of the sale, the chief executive officer directly owned 324,842 shares in the company, valued at $18,733,638.14. This represents a 13.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kevin Bradley sold 5,400 shares of the firm’s stock in a transaction 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 sale, the chief financial officer directly owned 78,222 shares in the company, valued at approximately $4,307,685.54. This represents a 6.46% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 4.80% of the company’s stock.

Hedge Funds Weigh In On Alarm.com

A number of hedge funds have recently modified their holdings of ALRM. Bank of New York Mellon Corp acquired a new stake in shares of Alarm.com during the second quarter worth $14,339,000. American Capital Management Inc. acquired a new position in Alarm.com in the second quarter valued at $3,202,000. Winmill & CO. Inc. bought a new stake in Alarm.com during the second quarter valued at $5,891,000. Summit Creek Advisors LLC acquired a new stake in Alarm.com during the 2nd quarter worth about $2,759,000. Finally, First Trust Advisors LP grew its holdings in Alarm.com by 83.1% during the 1st quarter. First Trust Advisors LP now owns 68,306 shares of the software maker’s stock worth $2,950,000 after acquiring an additional 31,000 shares during the period. Institutional investors and hedge funds own 91.74% of the company’s stock.

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.