Alarm.com (NASDAQ:ALRM) Reaches New 12-Month Low After Analyst Downgrade

Alarm.com Holdings, Inc. (NASDAQ:ALRM)’s share price reached a new 52-week low on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $55.00 to $40.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Alarm.com traded as low as $44.71 and last traded at $45.31, with a volume of 38575 shares trading hands. The stock had previously closed at $45.21.

Several other equities research analysts also recently issued reports on the company. Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research note on Tuesday, January 27th. Finally, Barclays lowered their price target on shares of Alarm.com from $60.00 to $56.00 and set an “equal weight” rating for the company in a report on Friday, November 7th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $58.50.

Insider Activity at Alarm.com

In other news, Director Stephen C. Evans sold 1,154 shares of the stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $52.27, for a total value of $60,319.58. Following the completion of the transaction, the director owned 6,123 shares in the company, valued at $320,049.21. This trade represents a 15.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jeffrey A. Bedell sold 22,727 shares of the stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $51.82, for a total transaction of $1,177,713.14. Following the completion of the transaction, the insider directly owned 505,805 shares of the company’s stock, valued at approximately $26,210,815.10. This trade represents a 4.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 26,154 shares of company stock valued at $1,357,388 over the last three months. Insiders own 5.80% of the company’s stock.

Alarm.com News Roundup

Here are the key news stories impacting Alarm.com this week:

• Positive Sentiment: Q4 earnings and revenue beat — Alarm.com reported $0.72 EPS vs. a $0.66 consensus and revenue of $261.7M vs. ~$250.8M expected, driven by SaaS strength and higher margins; this is the primary bullish catalyst. Zacks: ALRM Q4 Beat
• Positive Sentiment: Raised FY‑2026 guidance — management issued EPS guidance of $2.78–$2.79 and revenue guidance above consensus (~$1.1B vs. ~$1.0B expected), signaling confidence in recurring SaaS/license growth and underpinning forward multiple support. Business Wire: Q4 & Guidance
• Positive Sentiment: SaaS revenue momentum — SaaS & license revenue grew ~8.8% year-over-year in Q4, highlighting the recurring-revenue base that supports valuation and margin leverage. Press Release PDF
• Neutral Sentiment: Options activity flagged interest in a near‑term move — media noted elevated options positioning, which can amplify intraday volatility but doesn’t change fundamentals. MSN: Options Activity
• Neutral Sentiment: Short-interest data appears to show zero shares reported (likely a reporting/data anomaly), implying no clear short‑pressure signal from latest filings. Investors should verify via the exchange or broker data for confirmation.
• Negative Sentiment: Analyst downgrade/price‑target cut — JPMorgan lowered its price target to $40 and moved to an “underweight” stance, which could weigh on sentiment and sell‑side support despite the quarter and guidance. Benzinga: JPMorgan PT Cut

Institutional Investors Weigh In On Alarm.com

Hedge funds have recently modified their holdings of the company. Optiver Holding B.V. acquired a new position in Alarm.com in the 3rd quarter valued at $25,000. Strengthening Families & Communities LLC acquired a new position in Alarm.com in the third quarter valued at $27,000. Covestor Ltd lifted its position in Alarm.com by 67.3% during the fourth quarter. Covestor Ltd now owns 691 shares of the software maker’s stock worth $35,000 after buying an additional 278 shares during the period. Hantz Financial Services Inc. boosted its stake in Alarm.com by 2,637.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 794 shares of the software maker’s stock worth $42,000 after buying an additional 765 shares during the last quarter. Finally, Elevation Point Wealth Partners LLC purchased a new stake in Alarm.com in the 2nd quarter valued at about $43,000. 91.74% of the stock is owned by institutional investors and hedge funds.

Alarm.com Stock Performance

The stock’s 50 day moving average price is $49.78 and its 200 day moving average price is $51.92. The company has a current ratio of 2.06, a quick ratio of 1.92 and a debt-to-equity ratio of 0.59. The company has a market cap of $2.25 billion, a price-to-earnings ratio of 19.15, a P/E/G ratio of 1.66 and a beta of 0.79.

Alarm.com (NASDAQ:ALRM) last announced its quarterly earnings results on Thursday, February 19th. The software maker reported $0.72 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06. The company had revenue of $261.66 million for the quarter, compared to analyst estimates of $250.75 million. Alarm.com had a net margin of 12.92% and a return on equity of 14.26%. Alarm.com’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter last year, the business earned $0.58 EPS. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. On average, analysts expect 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.