Alarm.com (NASDAQ:ALRM) Reaches New 1-Year High – Here’s What Happened

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) hit a new 52-week high during mid-day trading on Thursday. The company traded as high as $58.50 and last traded at $58.1750, with a volume of 86,921 shares traded. The stock had previously closed at $56.68.

Analyst Ratings Changes

A number of research firms recently commented on ALRM. Barclays lifted their target price on Alarm.com from $55.00 to $60.00 and gave the stock an “equal weight” rating in a report on Monday, August 10th. Zacks Research downgraded shares of Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Raymond James Financial reissued a “strong-buy” rating and set a $65.00 price target 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 research note on Wednesday, July 29th. Finally, Wall Street Zen upgraded shares of Alarm.com from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $55.00.

Alarm.com Stock Performance

The company has a debt-to-equity ratio of 0.57, a current ratio of 4.96 and a quick ratio of 4.38. The firm has a fifty day moving average of $55.65 and a 200 day moving average of $49.95. The stock has a market cap of $2.84 billion, a price-to-earnings ratio of 25.44, a PEG ratio of 1.79 and a beta of 0.76.

Alarm.com (NASDAQ:ALRM) last announced its earnings results 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. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The company had revenue of $277.73 million during the quarter, compared to analyst estimates of $264.96 million. During the same quarter last year, the firm posted $0.60 earnings per share. Alarm.com’s revenue was up 9.2% compared to the same quarter last year. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. As a group, sell-side analysts forecast that Alarm.com Holdings, Inc. will post 2.47 EPS for the current year.

Insider Buying and Selling

In related news, CEO Stephen Trundle sold 50,000 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $57.67, for a total value of $2,883,500.00. Following the completion of the transaction, the chief executive officer directly owned 324,842 shares of the company’s stock, valued at $18,733,638.14. This represents a 13.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Kevin Bradley sold 5,400 shares of Alarm.com stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $55.07, for a total transaction of $297,378.00. Following the sale, the chief financial officer owned 78,222 shares in the company, valued at $4,307,685.54. This represents a 6.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC purchased a new stake in shares of Alarm.com in the second quarter valued at approximately $28,000. Allworth Financial LP increased its stake in shares of Alarm.com by 435.5% during the 2nd quarter. Allworth Financial LP now owns 980 shares of the software maker’s stock worth $46,000 after purchasing an additional 797 shares in the last quarter. Farther Finance Advisors LLC raised its holdings in shares of Alarm.com by 661.4% in the third quarter. Farther Finance Advisors LLC now owns 1,066 shares of the software maker’s stock worth $58,000 after acquiring an additional 926 shares during the last quarter. Pacer Advisors Inc. lifted its holdings in Alarm.com by 21.2% in the 1st quarter. Pacer Advisors Inc. now owns 2,312 shares of the software maker’s stock valued at $100,000 after purchasing an additional 404 shares in the last quarter. Finally, Versant Capital Management Inc boosted its position in Alarm.com by 261.0% during the second quarter. Versant Capital Management Inc now owns 2,231 shares of the software maker’s stock worth $104,000 after acquiring an additional 1,613 shares during the last quarter. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

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.