Alarm.com Holdings, Inc. (NASDAQ:ALRM) Sees Significant Growth in Short Interest

Alarm.com Holdings, Inc. (NASDAQ:ALRM) was the target of a large growth in short interest in September. As of September 15th, there was short interest totalling 2,710,000 shares, a growth of 6.7% from the August 31st total of 2,540,000 shares. Based on an average daily trading volume, of 469,200 shares, the short-interest ratio is presently 5.8 days. Currently, 5.8% of the shares of the company are sold short.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. StockNews.com upgraded Alarm.com from a “hold” rating to a “buy” rating in a research note on Friday, September 13th. Barclays decreased their price objective on shares of Alarm.com from $78.00 to $72.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 11th. Finally, The Goldman Sachs Group assumed coverage on shares of Alarm.com in a research report on Friday, September 6th. They set a “neutral” rating and a $64.00 target price for the company. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, Alarm.com has an average rating of “Hold” and a consensus price target of $69.00.

Insider Activity at Alarm.com

In other Alarm.com news, insider Daniel Ramos sold 9,476 shares of the stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $61.81, for a total transaction of $585,711.56. Following the sale, the insider now owns 41,100 shares in the company, valued at $2,540,391. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other Alarm.com news, CFO Steve Valenzuela sold 7,400 shares of the stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $60.27, for a total value of $445,998.00. Following the sale, the chief financial officer now directly owns 37,500 shares in the company, valued at approximately $2,260,125. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Daniel Ramos sold 9,476 shares of the business’s stock in a transaction on Friday, August 23rd. The shares were sold at an average price of $61.81, for a total transaction of $585,711.56. Following the transaction, the insider now owns 41,100 shares of the company’s stock, valued at $2,540,391. The disclosure for this sale can be found here. 5.60% of the stock is owned by company insiders.

Institutional Trading of Alarm.com

Institutional investors have recently added to or reduced their stakes in the business. First PREMIER Bank purchased a new stake in Alarm.com during the 1st quarter valued at about $30,000. YHB Investment Advisors Inc. purchased a new position in shares of Alarm.com in the first quarter worth $56,000. Point72 DIFC Ltd raised its holdings in Alarm.com by 293.6% during the 2nd quarter. Point72 DIFC Ltd now owns 1,476 shares of the software maker’s stock valued at $94,000 after buying an additional 1,101 shares during the last quarter. Canada Pension Plan Investment Board purchased a new stake in Alarm.com during the 2nd quarter valued at $108,000. Finally, CWM LLC grew its holdings in Alarm.com by 42.0% in the 2nd quarter. CWM LLC now owns 2,088 shares of the software maker’s stock worth $133,000 after acquiring an additional 618 shares during the last quarter. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

Alarm.com Stock Performance

Shares of NASDAQ ALRM opened at $53.85 on Wednesday. The stock’s 50-day moving average is $60.01 and its 200 day moving average is $64.43. The stock has a market cap of $2.70 billion, a price-to-earnings ratio of 31.99, a P/E/G ratio of 3.38 and a beta of 0.90. Alarm.com has a 1-year low of $49.70 and a 1-year high of $77.29. The company has a current ratio of 9.25, a quick ratio of 8.70 and a debt-to-equity ratio of 1.52.

Alarm.com (NASDAQ:ALRM) last announced its quarterly earnings data on Thursday, August 8th. The software maker reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.49 by $0.09. Alarm.com had a net margin of 11.92% and a return on equity of 13.00%. The firm had revenue of $233.80 million during the quarter, compared to analyst estimates of $227.35 million. During the same period in the previous year, the business posted $0.33 EPS. The business’s quarterly revenue was up 4.4% on a year-over-year basis. On average, sell-side analysts anticipate that Alarm.com will post 1.4 EPS for the current fiscal year.

Alarm.com Company Profile

Alarm.com Holdings, Inc provides various Internet of Things (IoT) and solutions for residential, multi-family, small business, and enterprise commercial markets in North America and internationally. The company operates through two segments, Alarm.com and Other. It offers solutions to control and monitor security systems, as well as to IoT devices, including door locks, garage doors, thermostats, and video cameras; and video monitoring and analytics solutions, such as video analytics, escalated events, video doorbells, intelligent integration, live streaming, secure cloud storage, and video alerts.