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Alarum Technologies Ltd (ALAR) is not a strong buy for a beginner, long-term investor at this time. While the company has shown strong revenue growth, its declining net income, EPS, and gross margin raise concerns about profitability and operational efficiency. Additionally, technical indicators suggest a bearish trend, and there are no significant positive catalysts or trading signals to support immediate action. It is advisable to monitor the stock for better entry points or improved financial performance.
The technical indicators for ALAR suggest a bearish trend. The MACD histogram is negative and contracting, RSI is neutral at 47.367, and moving averages indicate bearish momentum (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 7.058, with resistance at 7.616 and support at 6.501.
The company has shifted its strategy toward artificial intelligence data collection, which has led to record sales growth. Analysts view this as a positive development, with a reiterated Buy rating and a $27 price target.
Technical indicators are bearish, and there are no recent news or significant insider/hedge fund trading trends to support a positive outlook.
In Q3 2025, revenue increased by 80.86% YoY to $13,011,000, but net income dropped by 98.75% YoY to $53,000. EPS fell to 0, down 100% YoY, and gross margin decreased by 22.58% YoY to 55.59%. While revenue growth is strong, profitability metrics are concerning.
Canaccord reiterated a Buy rating with a $27 price target, citing the company's strategic pivot toward AI data collection and record sales growth. However, the stock experienced a post-earnings selloff, which analysts see as a buying opportunity.