Beyond The Numbers: 4 Analysts Discuss Alarm.com Holdings Stock

In the preceding three months, 4 analysts have released ratings for Alarm.com Holdings ALRM, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 0 3 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 1 0 2 0 0
3M Ago 0 0 0 0 0

Analysts have set 12-month price targets for Alarm.com Holdings, revealing an average target of $69.0, a high estimate of $78.00, and a low estimate of $62.00. This upward trend is apparent, with the current average reflecting a 10.4% increase from the previous average price target of $62.50.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Alarm.com Holdings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Saket Kalia Barclays Raises Equal-Weight $78.00 $66.00
Sterling Auty JP Morgan Raises Neutral $62.00 $55.00
Saket Kalia Barclays Raises Equal-Weight $66.00 $62.00
Darren Aftahi Roth MKM Raises Buy $70.00 $67.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Alarm.com Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alarm.com Holdings compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Alarm.com Holdings's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Alarm.com Holdings's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Alarm.com Holdings analyst ratings.

All You Need to Know About Alarm.com Holdings

Alarm.com Holdings Inc has two reportable segments: Alarm.com & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com segment. The platform allows home & business owners to secure their properties and automate & control an array of connected devices. SaaS & license fees from service providers, who resell these services & pay Alarm.com a monthly subscription, are the sources of revenue for the firm. A majority of revenue is generated in the United States & Canada.

Understanding the Numbers: Alarm.com Holdings's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Alarm.com Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 2.64%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Alarm.com Holdings's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.8% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Alarm.com Holdings's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.98% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Alarm.com Holdings's ROA excels beyond industry benchmarks, reaching 1.4%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.79.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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