Alarm.com Receives Buy Rating from Analysts at StockNews.com
In a research report issued to clients and investors on Thursday, analysts at StockNews.com commenced coverage on shares of Alarm.com (NASDAQ:ALRM), awarding the software maker with a “buy” rating. The Virginia-based company provides wireless and web-enabled security system technology, offering individuals and businesses security, video monitoring, and energy management solutions.
Alarm.com impressed investors in its most recent quarterly earnings report on May 10th, when it reported $0.23 EPS for the quarter–outpacing analysts’ consensus estimates by a phenomenal $0.14. The company also exceeded revenue expectations with a reported $209.72 million for the quarter compared to projected revenue of $207.28 million.
With this latest development from StockNews.com, it comes as no surprise that prospects remain high for Alarm.com’s future growth potential. It operates through two segments: Alarm.com and Other, but it is clearly its cloud-based platform for the connected home that investors have been keeping an eye on.
As research analysts predict Alarm.com will post 0.62 EPS for the current year, all eyes are set for more news and developments from the security giant regarding partnerships and expansions to keep track with their increasing demand in both security and energy management industries.
Overall, these are exciting times for investors who believe in Alarm.com’s ability to keep up with market demands while maintaining its cutting-edge technology that has earned them such impressive reviews from stock industry professionals like those at StockNews.com.
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Alarm.com: A Leading Technology Security Provider Facing Market Fluctuations and Insider Trading Rumours
Alarm.com Holdings, a leading provider of wireless and web-enabled security system technology, has been the focus of much research recently. Despite being downgraded by Maxim Group to a price objective of $70.00 on February 27th, Alarm.com received an upgrade from Barclays as they boosted their price objective from $52.00 to $54.00 on May 11th. Two investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company’s stock. An average rating of “Moderate Buy” and consensus price target of $63.50 have been assigned by Bloomberg.
Shares in ALRM opened at $50.42 on Thursday with a 50-day moving average price of $48.51 and a two-hundred day moving average price of $50.59. The company has enjoyed a 12-month high of $78.99 but also seen lows of $44.92 during this period.
Despite the fluctuation in share prices, Alarm.com continues to expand its offering with cloud-based platform for connected home solutions that tie in video monitoring, security and energy management software across its segments.
Insiders such as CFO Steve Valenzuela have sold shares in recent weeks in transactions that disclosed valuations above market averages giving investors pause for thought amidst rumours of insider trading before more significant industry announcements take place.
Although some shareholders may be nervous about these sales, there is renewed interest from institutional investors like Arcus Capital Partners LLC who acquired a stake worth approximately $30,000 during Q4/2020 along with Northwestern Mutual Wealth Management Co and National Bank of Canada FI who increased their holdings earlier this year.
Overall Alarm.com appears to be consolidating its market position building upon previous success while managing systemic risks that affect every enterprise entity operating within this space during an exceptional time where the world faces unprecedented challenges head-on.
However investors will be keeping a close eye on indicators such as company debt-to-equity ratios, free cash flow margins, PE ratios and market capitalisation factors that can make or break share valuations and investor confidence. Nevertheless with effective management and a good track record, Alarm.com undoubtedly remains one of the leading technology security providers today.
