ALRM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Alarm.com Holdings Inc (ALRM) is not a strong buy at this time for a beginner investor with a long-term strategy. The stock shows bearish technical indicators, weak analyst sentiment, and lacks significant positive catalysts to justify immediate investment. While the company's financial performance is improving, the broader market sentiment and technical trends suggest waiting for a better entry point.
The technical indicators for ALRM are bearish. The MACD histogram is negative and contracting (-0.478), the RSI is neutral (24.576), and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key pivot levels, with support at 42.939 and resistance at 44.866.
Hedge funds have significantly increased their buying activity by 571.25% over the last quarter. The company's financials for Q4 2025 show strong YoY growth in revenue (+8.02%), net income (+14.53%), and EPS (+17.86%).
Analyst sentiment is weak, with Barclays and JPMorgan both lowering price targets and expressing concerns about the competitive landscape. The stock's technical indicators are bearish, and there is no recent news or significant event-driven catalyst to drive the stock higher.
In Q4 2025, Alarm.com reported strong financial growth: revenue increased by 8.02% YoY to $261.66M, net income rose by 14.53% YoY to $34.73M, EPS grew by 17.86% YoY to 0.66, and gross margin improved slightly to 62.74%.
Analysts have a cautious outlook on ALRM. Barclays lowered the price target from $56 to $50 and maintained an Equal Weight rating. JPMorgan reduced the price target from $55 to $40 and kept an Underweight rating, citing concerns about the software sector's defensibility amidst rapid AI advancements.
