Key Points
- CEO Stephen Trundle sold 2,944 Alarm.com shares for about $128,240 at an average price of $43.56, mainly to cover tax withholding tied to vesting equity awards.
- Alarm.com reported better-than-expected Q1 results, with EPS of $0.65 versus the $0.60 estimate and revenue of $265.19 million, up 11.1% year over year.
- Despite the earnings beat, analyst sentiment remains cautious: the stock has a “Reduce” consensus rating and a consensus price target of $47.50.
Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) insider Daniel Ramos sold 1,561 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $43.56, for a total transaction of $67,997.16. Following the transaction, the insider owned 65,631 shares of the company's stock, valued at approximately $2,858,886.36. This represents a 2.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Alarm.com Stock Up 1.3%
Shares of ALRM opened at $44.04 on Thursday. Alarm.com Holdings, Inc. has a 12 month low of $41.49 and a 12 month high of $59.98. The company has a 50-day moving average price of $44.70 and a two-hundred day moving average price of $48.00. The company has a quick ratio of 4.55, a current ratio of 5.16 and a debt-to-equity ratio of 0.57. The stock has a market cap of $2.18 billion, a price-to-earnings ratio of 18.27, a P/E/G ratio of 1.52 and a beta of 0.79.
Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its earnings results on Thursday, May 7th. The software maker reported $0.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.60 by $0.05. Alarm.com had a net margin of 12.36% and a return on equity of 14.99%. The company had revenue of $265.19 million during the quarter, compared to analysts' expectations of $250.94 million. During the same quarter in the previous year, the company posted $0.54 earnings per share. Alarm.com's quarterly revenue was up 11.1% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.810-2.810 EPS. Equities analysts predict that Alarm.com Holdings, Inc. will post 2.24 EPS for the current fiscal year.
Analyst Upgrades and Downgrades
ALRM has been the subject of a number of research analyst reports. Weiss Ratings reiterated a "hold (c-)" rating on shares of Alarm.com in a research note on Friday, April 24th. Barclays lifted their target price on shares of Alarm.com from $50.00 to $55.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. JPMorgan Chase & Co. cut their target price 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. Finally, Zacks Research cut shares of Alarm.com from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 25th. Three investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $47.50.
Read Our Latest Research Report on ALRM
Institutional Trading of Alarm.com
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in shares of Alarm.com by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 6,286,541 shares of the software maker's stock valued at $320,739,000 after purchasing an additional 53,664 shares in the last quarter. Disciplined Growth Investors Inc. MN increased its holdings in shares of Alarm.com by 3.0% in the second quarter. Disciplined Growth Investors Inc. MN now owns 3,491,824 shares of the software maker's stock valued at $197,532,000 after purchasing an additional 102,481 shares in the last quarter. Bank of Montreal Can increased its holdings in shares of Alarm.com by 625.1% in the fourth quarter. Bank of Montreal Can now owns 2,231,227 shares of the software maker's stock valued at $113,837,000 after purchasing an additional 1,923,525 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Alarm.com by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 1,219,732 shares of the software maker's stock valued at $62,239,000 after purchasing an additional 7,454 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Alarm.com by 1.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,117,359 shares of the software maker's stock valued at $48,257,000 after purchasing an additional 11,624 shares in the last quarter. Institutional investors and hedge funds own 91.74% of the company's stock.
About Alarm.com
(
Get Free Report)
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.
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