Stephen C. Evans, a director at Alarm.com Holdings Inc. (NASDAQ:ALRM), recently sold shares of the company. According to an SEC filing, Evans sold 2,625 shares of common stock at a price of $59.67 per share, totaling approximately $156,633. Following the sale, Evans retains ownership of 5,767 shares in the company. This transaction was executed on November 20, 2024.
In other recent news, Alarm.com's third-quarter earnings and revenue results have been a focal point for analysts. Barclays (LON:BARC) raised its stock target for Alarm.com to $67, attributing this decision to the company's strong Q3 performance that exceeded revenue projections by $9 million. Similarly, Goldman Sachs (NYSE:GS) upgraded Alarm.com's stock based on the same Q3 performance, with a particular emphasis on the company's software-as-a-service (SaaS) and license revenues.
In contrast, JPMorgan (NYSE:JPM) initiated coverage on Alarm.com with an Underweight rating and a price target of $50, expressing concerns about potential revenue challenges and limited opportunities for margin improvement. Jefferies initiated coverage on Alarm.com with a Buy rating and a price target of $65, citing the company's sustainable growth and profitability.
Roth/MKM maintained a Buy rating but lowered the stock's price target to $73, pointing to the company's growth prospects in video, commercial, and international markets.
In other company news, Alarm.com completed a $500 million convertible notes offering and introduced generative AI to their service provider support platform. The company's full-year 2024 SaaS and license revenue expectations have been raised to between $626.8 million and $627.2 million, with total revenue estimated to be between $920.8 million and $931.2 million. These are the recent developments in the company.
InvestingPro Insights
While Stephen C. Evans's recent sale of Alarm.com Holdings Inc. (NASDAQ:ALRM) shares might raise eyebrows, a closer look at the company's financials reveals a more nuanced picture. According to InvestingPro data, Alarm.com boasts a market capitalization of $2.98 billion and a P/E ratio of 23.88, suggesting a reasonable valuation relative to its earnings.
InvestingPro Tips highlight that Alarm.com is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.29 for the last twelve months as of Q3 2024. This indicates that the stock may be undervalued considering its growth prospects. Additionally, the company operates with a moderate level of debt and has liquid assets exceeding short-term obligations, pointing to a solid financial position.
The company's revenue growth of 6.98% over the last twelve months and a robust gross profit margin of 64.95% underscore its operational efficiency. Moreover, Alarm.com has demonstrated profitability, with a return on assets of 7.31% for the same period.
These insights suggest that despite the director's stock sale, Alarm.com's fundamentals remain strong. Investors seeking a more comprehensive analysis can access additional tips and metrics through InvestingPro, which offers 8 more tips for ALRM beyond those mentioned here.
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