Alarm.com (NASDAQ:ALRM) Downgraded by Zacks Research to Strong Sell

Alarm.com (NASDAQ:ALRM) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday, Zacks reports.

Several other equities research analysts also recently issued reports on ALRM. Wall Street Zen upgraded Alarm.com from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Weiss Ratings upgraded Alarm.com from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 15th. Raymond James Financial reissued a “strong-buy” rating and set a $65.00 price objective on shares of Alarm.com in a report on Friday, August 7th. Barclays raised their target price on Alarm.com from $60.00 to $70.00 and gave the stock an “equal weight” rating in a research note on Friday, November 6th. Finally, William Blair reaffirmed a “market perform” rating on shares of Alarm.com in a report on Friday, November 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $61.67.

Alarm.com Stock Up 0.7%

Alarm.com stock opened at $66.29 on Tuesday. The company has a current ratio of 4.83, a quick ratio of 4.27 and a debt-to-equity ratio of 0.55. Alarm.com has a 1-year low of $41.49 and a 1-year high of $69.39. The firm has a market capitalization of $3.25 billion, a price-to-earnings ratio of 25.33, a price-to-earnings-growth ratio of 2.07 and a beta of 0.70. The firm’s fifty day moving average price is $58.45 and its two-hundred day moving average price is $50.73.

Alarm.com (NASDAQ:ALRM) last posted its quarterly earnings data on Thursday, November 5th. The software maker reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.75 by $0.15. The firm had revenue of $279.44 million for the quarter, compared to the consensus estimate of $265.82 million. Alarm.com had a net margin of 10.79% and a return on equity of 15.92%. The business’s revenue for the quarter was up 9.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.76 EPS. On average, equities research analysts predict that Alarm.com will post 2.49 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Alarm.com news, CEO Stephen Trundle sold 50,000 shares of the firm’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $57.67, for a total value of $2,883,500.00. Following the sale, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 4.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Alarm.com

Hedge funds have recently modified their holdings of the company. Bank of New York Mellon Corp bought a new position in shares of Alarm.com during the second quarter valued at about $14,339,000. Arrowstreet Capital Limited Partnership grew its stake in shares of Alarm.com by 43.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 779,200 shares of the software maker’s stock worth $33,654,000 after purchasing an additional 237,633 shares during the last quarter. Evanson Financial LLC bought a new stake in shares of Alarm.com in the second quarter worth about $7,168,000. Winmill & CO. Inc. bought a new stake in shares of Alarm.com in the second quarter worth about $5,891,000. Finally, American Capital Management Inc. purchased a new position in Alarm.com during the 2nd quarter valued at about $3,202,000. Hedge funds and other institutional investors own 91.74% of the company’s stock.

Alarm.com Company Profile

Alarm.com Holdings, Inc. develops cloud-based software and connected-device services for residential and commercial security, automation, and energy management. Its platform brings together devices such as security sensors, cameras, locks, thermostats, and access-control systems, which customers can manage through mobile and web applications. The company provides its technology primarily through a network of security and service providers. Its offerings include intrusion detection, video monitoring and analytics, smart-home automation, commercial security and access control, and tools for monitoring and managing energy use.