4 analysts have shared their evaluations of Alarm.com Holdings ( ALRM ) during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Alarm.com Holdings ( ALRM ) and provided 12-month price targets. The average target is $65.5, accompanied by a high estimate of $73.00 and a low estimate of $60.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 12.67%.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Alarm.com Holdings's ( ALRM ) perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Alarm.com Holdings ( ALRM ). This information provides a snapshot of how analysts perceive the current state of the company.

Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alarm.com Holdings ( ALRM ) compared to the broader market.

Price Targets: Understanding forecasts, analysts offer estimates for Alarm.com Holdings's ( ALRM ) future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Alarm.com Holdings's ( ALRM ) market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Alarm.com Holdings ( ALRM ) analyst ratings.

Get to Know Alarm.com Holdings Better

Alarm.com Holdings Inc ( ALRM ) has two reportable segments: Alarm.com ( ALRM ) & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com ( ALRM ) segment. The platform allows home & business owners to secure their properties and automate & control an array of connected devices. SaaS & license fees from service providers, who resell these services & pay Alarm.com ( ALRM ) a monthly subscription, are the sources of revenue for the firm. The majority of revenue is generated in the United States & Canada.

Key Indicators: Alarm.com Holdings's Financial Health

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Alarm.com Holdings ( ALRM ) displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 4.44%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Alarm.com Holdings's ( ALRM ) net margin is impressive, surpassing industry averages. With a net margin of 14.33%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Alarm.com Holdings's ( ALRM ) ROE stands out, surpassing industry averages. With an impressive ROE of 4.88%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.01%, the company showcases effective utilization of assets.

Debt Management: Alarm.com Holdings's ( ALRM ) debt-to-equity ratio surpasses industry norms, standing at 1.57. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.