Is Alarm.com Holdings (ALRM) a Fundamentally Strong Stock?

Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered 3.46% net of fees compared to a 4.13% return for the Russell 2000 Growth Index. Style factor headwinds and relative sector positioning offset the positive stock selection in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Polen Capital highlighted stocks like Alarm.com Holdings, Inc. (NASDAQ:ALRM) in the Q4 2022 investor letter. Headquartered in Tysons, Virginia, Alarm.com Holdings, Inc. (NASDAQ:ALRM) offers cloud-based security solutions for residential and commercial properties. On January 24, 2023, Alarm.com Holdings, Inc. (NASDAQ:ALRM) stock closed at $51.83 per share. One-month return of Alarm.com Holdings, Inc. (NASDAQ:ALRM) was 9.97%, and its shares lost 28.18% of their value over the last 52 weeks. Alarm.com Holdings, Inc. (NASDAQ:ALRM) has a market capitalization of $2.587 billion.

Polen Capital made the following comment about Alarm.com Holdings, Inc. (NASDAQ:ALRM) in its Q4 2022 investor letter:

Alarm.com Holdings, Inc. (NASDAQ:ALRM), a cloud-based provider of remote control, home automation, and security monitoring services, shares were down on a weaker-than-expected initial outlook for FY23. Additionally, the company is going into arbitration with customer Vivint, which has stopped paying them licensing revenue, which is a roughly 3% headwind to the top line. While we continue to monitor these developments closely, this is a very stable business that has historically been able to grow through more challenging macro backdrops, given the stickiness of its core SaaS revenue.”

Logitech Circle 2

Alarm.com Holdings, Inc. (NASDAQ:ALRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Alarm.com Holdings, Inc. (NASDAQ:ALRM) at the end of the third quarter which was 20 in the previous quarter.

We discussed Alarm.com Holdings, Inc. (NASDAQ:ALRM) in another article and shared the list of best Internet-of-Things (IoT) stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.