ALAR Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Alarum Technologies Ltd (ALAR) is not a strong buy at this time for a beginner investor with a long-term strategy. While the company has shown strong revenue growth and a promising pivot towards AI data collection, the technical indicators are bearish, and the stock lacks immediate positive trading signals. Additionally, the company's profitability is under pressure due to deliberate reinvestments, and there are no significant catalysts or trading trends to support a buy decision right now.
The MACD is below 0 and negatively contracting, indicating bearish momentum. The RSI is neutral at 31.19, and the moving averages are bearish with SMA_200 > SMA_20 > SMA_5. The stock is trading below key pivot levels, with support at 5.968 and resistance at 7.29.
The strategic pivot towards AI data collection is yielding record top-line growth.
Gross margins have decreased significantly due to strategic investments, and operating expenses have risen sharply. Profitability has declined year-over-year, and technical indicators suggest bearish momentum.
In Q4 2025, revenue grew 28% YoY to $40.7 million, but gross margins dropped to 58.5% from 75.1% in 2024. Operating expenses increased to $23.6 million from $17.2 million in 2024. For Q1 2026, the company projects $11 million in revenue (up 54% YoY) and adjusted EBITDA of $1.4 million.
Alliance Global and Canaccord both lowered their price targets for ALAR, citing mixed Q4 results. However, both firms maintain a Buy rating, highlighting the company's strong top-line growth and strategic reinvestments as positives.
