Alarm.com (NASDAQ:ALRM) Hits New 1-Year Low Following Analyst Downgrade

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) hit a new 52-week low during mid-day trading on Wednesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $42.90 and last traded at $42.5950, with a volume of 52807 shares. The stock had previously closed at $43.53.

Several other research firms also recently weighed in on ALRM. Weiss Ratings reissued a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. Barclays reduced their price target on shares of Alarm.com from $56.00 to $50.00 and set an “equal weight” rating for the company in a research report on Friday, February 20th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Alarm.com from $55.00 to $40.00 and set an “underweight” rating for the company in a research note on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Alarm.com has a consensus rating of “Hold” and a consensus target price of $57.00.

Insider Buying and Selling

In other Alarm.com news, CFO Kevin Christopher Bradley sold 1,510 shares of Alarm.com stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $45.97, for a total transaction of $69,414.70. Following the transaction, the chief financial officer owned 51,546 shares of the company’s stock, valued at $2,369,569.62. The trade was a 2.85% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 5.80% of the company’s stock.

Institutional Trading of Alarm.com

Several institutional investors have recently made changes to their positions in the stock. Amundi boosted its position in Alarm.com by 6.8% during the first quarter. Amundi now owns 17,532 shares of the software maker’s stock valued at $920,000 after purchasing an additional 1,113 shares during the last quarter. AQR Capital Management LLC raised its position in shares of Alarm.com by 7.8% in the first quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker’s stock valued at $3,284,000 after purchasing an additional 4,246 shares during the period. Woodline Partners LP acquired a new position in Alarm.com during the 1st quarter worth $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Alarm.com by 4.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,200 shares of the software maker’s stock worth $7,301,000 after purchasing an additional 6,080 shares during the last quarter. Finally, Jane Street Group LLC lifted its holdings in shares of Alarm.com by 610.0% during the first quarter. Jane Street Group LLC now owns 114,715 shares of the software maker’s stock worth $6,384,000 after buying an additional 98,557 shares during the last quarter. 91.74% of the stock is currently owned by institutional investors and hedge funds.

Alarm.com Trading Up 0.8%

The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.78 and a current ratio of 1.92. The company’s 50 day moving average is $47.31 and its 200 day moving average is $50.19. The stock has a market capitalization of $2.15 billion, a price-to-earnings ratio of 17.57, a PEG ratio of 1.50 and a beta of 0.80.

Alarm.com (NASDAQ:ALRM) last released its earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.06. Alarm.com had a return on equity of 14.79% and a net margin of 13.11%.The business had revenue of $261.66 million for the quarter, compared to the consensus estimate of $250.75 million. During the same period last year, the business earned $0.58 earnings per share. The firm’s revenue for the quarter was up 8.1% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. On average, research analysts forecast that Alarm.com Holdings, Inc. will post 1.64 EPS for the current fiscal year.

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.