Alarm.com Holdings, Inc. (NASDAQ:ALRM) Receives $58.50 Average Target Price from Brokerages

Shares of Alarm.com Holdings, Inc. (NASDAQ:ALRM) have been given an average rating of “Hold” by the six brokerages that are presently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a strong buy rating on the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $57.00.

A number of brokerages have recently commented on ALRM. Zacks Research downgraded Alarm.com from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Weiss Ratings restated a “hold (c-)” rating on shares of Alarm.com in a research report on Tuesday, January 27th. 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 report on Wednesday. Finally, Barclays decreased their target price on shares of Alarm.com from $56.00 to $50.00 and set an “equal weight” rating for the company in a research note on Friday.

More Alarm.com News

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

• Positive Sentiment: Q4 results beat consensus — EPS $0.72 vs. $0.66 expected and revenue $261.7M vs. ~$250.8M expected; SaaS & license revenue grew ~8.8% year-over-year. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company raised FY2026 guidance to $2.780–2.790 EPS and ~ $1.1B revenue vs. street ~ $2.47 EPS / ~$1.0B — a material upward revision that supports higher valuation multiples. Alarm.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Market writeups emphasize the beat and rally — headlines note the stock “soars” after results, reinforcing the positive sentiment and likely driving intraday buying. Alarm.com (NASDAQ:ALRM) beats Q4 CY2025 sales expectations, stock soars
• Neutral Sentiment: Earnings-call highlights and full transcripts available for detail on product mix, churn and margin drivers — useful for fundamental follow-up but mostly confirmatory. Alarm.com Holdings Inc (ALRM) Q4 2025 Earnings Call Highlights Earnings Call Transcript
• Neutral Sentiment: Short‑interest entries for February in the feed show zero/NaN values and an effectively 0.0 days ratio — the data appears erroneous and is unlikely to be driving moves.
• Negative Sentiment: JPMorgan lowered expectations for ALRM’s stock price — an analyst note that could restrain upside or prompt profit-taking despite the upbeat quarter. JPMorgan Chase & Co. Has Lowered Expectations for Alarm.com (NASDAQ:ALRM) Stock Price

Alarm.com Price Performance

ALRM stock opened at $45.59 on Wednesday. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.92 and a current ratio of 2.06. The company’s fifty day moving average price is $49.65 and its 200-day moving average price is $51.85. Alarm.com has a one year low of $44.71 and a one year high of $61.41. The company has a market capitalization of $2.27 billion, a PE ratio of 18.53, a price-to-earnings-growth ratio of 1.66 and a beta of 0.79.

Alarm.com (NASDAQ:ALRM) last posted 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 net margin of 13.11% and a return on equity of 15.04%. The firm had revenue of $261.66 million for the quarter, compared to the consensus estimate of $250.75 million. During the same period in the previous year, the firm posted $0.58 EPS. The business’s quarterly revenue was up 8.1% on a year-over-year basis. Alarm.com has set its FY 2026 guidance at 2.780-2.790 EPS. On average, equities analysts anticipate that Alarm.com will post 1.64 EPS for the current fiscal year.

Insider Buying and Selling at Alarm.com

In other news, Director Stephen C. Evans sold 1,154 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $52.27, for a total value of $60,319.58. Following 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jeffrey A. Bedell sold 22,727 shares of the business’s 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 transaction, the insider directly owned 505,805 shares in the company, valued at approximately $26,210,815.10. The trade was a 4.30% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 26,154 shares of company stock valued at $1,357,388. 5.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Alarm.com

A number of large investors have recently modified their holdings of ALRM. Invesco Ltd. boosted its stake in shares of Alarm.com by 8.6% during the fourth quarter. Invesco Ltd. now owns 243,828 shares of the software maker’s stock valued at $12,440,000 after acquiring an additional 19,228 shares during the last quarter. EP Wealth Advisors LLC purchased a new position in Alarm.com in the 4th quarter valued at about $241,000. Mackenzie Financial Corp boosted its stake in shares of Alarm.com by 34.3% during the 4th quarter. Mackenzie Financial Corp now owns 42,044 shares of the software maker’s stock worth $2,172,000 after purchasing an additional 10,727 shares during the last quarter. NewEdge Advisors LLC boosted its stake in shares of Alarm.com by 960.9% during the 4th quarter. NewEdge Advisors LLC now owns 14,174 shares of the software maker’s stock worth $723,000 after purchasing an additional 12,838 shares during the last quarter. Finally, XTX Topco Ltd grew its holdings in shares of Alarm.com by 266.3% during the fourth quarter. XTX Topco Ltd now owns 31,209 shares of the software maker’s stock worth $1,592,000 after buying an additional 22,689 shares in the last quarter. 91.74% of the stock is owned by hedge funds and other institutional investors.

Alarm.com Company Profile

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.