Alarm.com offers one of the top home alarm platforms for a connected home. Its 7 million share IPO priced at $14.00 per share at the end of June, and all shares sold were sold by the company itself. Its underwriters were granted a 30-day option to purchase up to an additional 525,000 shares from the company and an option to buy an additional 525,000 shares of common stock from selling stockholders.
The joint book runners were Goldman Sachs, Credit Suisse and Bank of America Merrill Lynch. Co-managers were Stifel, Raymond James, William Blair and Imperial Capital. We have seen analysts issue the following coverage in Alarm.com:
- Merrill Lynch at Buy with a $21 price objective
- Credit Suisse at Outperform with a $22 price target
- Goldman Sachs at Neutral with an $18 price target
- Raymond James at Outperform with a $21 price target
- Stifel at Buy with a $22 price target
- William Blair at Outperform
Alarm.com shares closed at $16.88 on the first day of its post-IPO trading, with more than 9 million shares having traded hands. While shares have gyrated after the IPO, the $18.78 close on Monday, July 21, was actually the highest closing price that Alarm.com shares have seen.
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Unfortunately, that Neutral rating from Goldman Sachs, one of the lead underwriters, as well as one of the most widely followed firms for research reports, may be what was weighing on the quiet period expiration performance. Also, the performance already has been positive.
Alarm.com shares were trading down 6.4% at $17.58 Tuesday morning. Its post-IPO range has been $14.71 to $19.15.
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