August 2, 2023 – Investors worldwide were perplexed by the recent trimming of holdings in Alarm.com Holdings, Inc. (NASDAQ:ALRM) by Yousif Capital Management LLC. The renowned capital management firm disclosed its decision to reduce its stakes in the software maker’s stock by 11.5% during the first quarter, as reported to the Securities and Exchange Commission.
Yousif Capital Management LLC currently owns 28,032 shares of Alarm.com Holdings, Inc., after selling 3,640 shares in the previous quarter. This reduction amounts to a decrease of approximately $1,409,000 in the total worth of their holdings. However, despite this adjustment, Yousif Capital Management LLC still retains ownership of 0.06% of Alarm.com’s outstanding shares.
Alarm.com Holdings, Inc., a leading provider of Internet of Things (IoT) solutions for various markets including residential, multi-family, small business, and enterprise commercial sectors both domestically and internationally. The company operates through two key segments: Alarm.com and Other. Their innovative offerings include cutting-edge solutions for security system control and monitoring along with a range of IoT devices such as door locks, garage doors, thermostats, and video cameras.
Moreover, Alarm.com also provides video monitoring and analytics solutions that encompass features like escalated events management, video doorbells integration with other smart devices homes or offices may have already installed), live streaming capabilities, secure cloud storage services for recorded footage storage purposes as well as real-time video alerts triggered by specific events or incidents.
On Wednesday morning at market opening hours (the reference date being August 2nd), ALRM stock opened at a price point of $55.04 per share. Notably, the stock has been moving within specific averages over time; it currently holds a 50-day simple moving average of $51.73 while maintaining an even more extensive moving average calculated over the past 200 days at $50.82.
Analysts and investors often look at a company’s liquidity ratios to assess its financial health and stability. Alarm.com Holdings, Inc. boasts an impressive current ratio of 5.46, indicating that it possesses sufficient short-term assets to cover any immediate liabilities or obligations. Similarly, the quick ratio stands at 4.73, further bolstering the notion of a solid financial position.
In terms of capital structure, Alarm.com Holdings, Inc maintains a debt-to-equity ratio of 0.79, suggesting that the company is utilizing a favorable mix of both borrowed funds and shareholder equity to finance its operations and investments.
As for market valuation indicators, ALRM currently holds a market capitalization value of approximately $2.74 billion. The stock’s price-earnings (PE) ratio rests at 46.64 signifying that investors are willing to pay $46.64 for every dollar of ALRM’s earnings because they anticipate continuous growth potential in the future.
The price-to-earnings growth (PEG) ratio gives an additional perspective on how investors perceive the stock’s valuation concerning its expected future earnings growth rates. Alarm.com Holdings, Inc.’s PEG ratio stands at 7.74, signaling that investors are paying $7.74 for every unit of expected earnings growth over time.
Lastly, ALRM’s beta coefficient measures its sensitivity to market movements; in this case, it sits at 1.01 which implies that Alarm.com Holdings’ stock tends to move relatively in sync with the broader market benchmarks like the S&P500.
It is essential to note that over the past year ALRM shares have traded within a range from their low point set at $44.92 to reach a peak price level recorded as high as $78.99 per share mark.
In light of these recent events surrounding Yousif Capital Management LLC’s decision to trim their holdings and the overall performance of Alarm.com Holdings, Inc., it remains to be seen how this development will impact the company’s future prospects. Industry analysts and investors eagerly await further information to determine whether the trimmed holdings are a reflection of concerns or if alternative factors drove this decision. As such, market participants will continue to monitor ALRM’s performance in the coming quarters with great interest.
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Institutional Investors Boost Holdings in IoT Solutions Provider Alarm.com while Insiders Sell Shares
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”ALRM” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Alarm.com Holdings, Inc., an IoT solutions provider for residential and commercial markets, has seen various modifications to its holdings by hedge funds and institutional investors. The asset management firm Victory Capital Management Inc. boosted its holdings in Alarm.com by 18.5% during the first quarter of this year. They now own 12,686 shares valued at $638,000 after acquiring an additional 1,976 shares.
Another notable investor is Texas Permanent School Fund Corp which increased its stake in Alarm.com by 33.4% during the first quarter as well. They now own 44,760 shares valued at $2,251,000 after purchasing an additional 11,205 shares.
Furthermore, Arizona State Retirement System grew its position in Alarm.com by 3.0% during the first quarter, bringing their total holdings to 13,738 shares valued at $691,000 after acquiring an additional 405 shares.
In terms of recent developments within the company’s leadership team, Director Simone Wu sold 868 shares on June 7th at an average price of $52 per share. This transaction had a total value of $45,136. Following the sale, Wu still retains ownership of 4,982 shares valued at approximately $259,064.
In addition to Wu’s sale of company stock in June, CEO Stephen Trundle sold 4,694 shares on May 16th at an average price of $48.82 per share. The total transaction amounted to $229,161.08 worth of shares sold.
Insider activity has been robust over the past three months with a total of 11,188 shares being sold by insiders equating to a value of approximately $555,270 and representing roughly 5.60% ownership.
Alarm.com offers IoT solutions for security systems and devices such as door locks and thermostats in residential and commercial markets across North America and internationally.
The company operates in two segments: Alarm.com, which provides control and monitoring services for security systems, and Other, which offers video surveillance solutions including video doorbells, live streaming, and secure cloud storage.
In terms of financial performance, Alarm.com reported $0.23 EPS for the quarter ending May 10th, beating the consensus estimate of $0.09 by $0.14. The company’s revenue for the same period stood at $209.72 million, slightly surpassing the consensus estimate of $207.28 million.
Analysts have weighed in on Alarm.com’s prospects, with Barclays raising their price objective from $54.00 to $57.00 and giving the stock an “equal weight” rating in July. StockNews.com also initiated coverage on Alarm.com with a “buy” rating back in May.
Overall, Bloomberg.com data shows that Alarm.com has a consensus rating of “Moderate Buy” among analysts with an average price target of $64.25.
With strong institutional investor interest and positive financial performance thus far, it will be interesting to see how Alarm.com continues to navigate the rapidly evolving IoT market moving forward.
