In the past three months, four analysts have shared their evaluations of Alarm.com Holdings (ALRM), offering both bullish and bearish insights. They have modified their ratings, reflecting changes in sentiment within the last 30 days compared to previous months. Currently, there are two bullish ratings and two indifferent ones, highlighting diverse viewpoints among analysts.
Recently, analysts have provided 12-month price targets for Alarm.com Holdings, with an average target of $65.5. The high estimate reaches $73.00, while the low estimate is $60.00. There has been a noticeable negative shift in sentiment, with analysts lowering the average price target by approximately 12.67%. Taking a closer look at analyst ratings reveals insightful perceptions about Alarm.com Holdings among financial experts. A detailed summary of key analysts, their evaluations, and revised ratings and price targets are highlighted.
Samad Samana from Jefferies initiated coverage with a 'Buy' rating and a $65.00 price target. Darren Aftahi from Roth MKM downgraded his 'Buy' rating with a revised target of $73.00 from a previous $78.00 estimate. Similarly, Saket Kalia from Barclays adjusted to 'Equal-Weight' with a target of $60.00, down from $72.00, while Adam Hotchkiss from Goldman Sachs maintained a 'Neutral' stance with a $64.00 target. These actions reflect analysts' responses to evolving market conditions and company performance, offering a comprehensive view of Alarm.com Holdings’ potential performance compared to the broader market.
Analysts' price targets provide forecasts for Alarm.com Holdings’s future value, giving insight into their expectations. Beyond ratings, it’s crucial to understand Alarm.com Holdings’ business model and financial health. The company has two segments: Alarm.com, focusing on cloud-based software platforms, and 'Other,' which involves developing residential and commercial automation solutions. The Alarm.com segment generates most of the revenue, as homeowners and businesses use its platform for security and automation purposes. Revenue arises from SaaS and license fees sourced from service providers who distribute these services.
Financially, Alarm.com Holdings stands out with a strong market capitalization, displaying robust market dominance. Although revenue has grown at a modest 4.44% over a three-month period ending June 30, 2024, it trails behind industry averages. However, the company excels with a net margin of 14.33%, along with exceptional returns on equity (4.88%) and assets (2.01%), indicating effective resource utilization. Despite its impressive financial performance, the company’s debt-to-equity ratio of 1.57 surpasses industry norms, indicating potential challenges in debt management.
Understanding analyst ratings is vital for making informed investment decisions. Analysts draw conclusions based on forecasts of a company's future earnings and risk profiles, offering ratings typically each quarter or following major updates. While useful, these analyses are subject to variability due to human interpretation. For those interested in understanding market dynamics through analysts' recommendations, Benzinga provides access to major upgrades and downgrades in stock ratings, allowing you to remain informed and ahead in the market. Keep in mind that this content is automated and reviewed for accuracy, and Benzinga does not offer direct investment advice.
