Insider Selling: Alarm.com (NASDAQ:ALRM) CEO Sells 50,000 Shares of Stock

Key Points

• Alarm.com CEO Stephen Trundle sold 50,000 shares at an average price of $57.67, generating proceeds of approximately $2.88 million. The sale reduced his ownership by 13.34%, leaving him with 324,842 shares.
• ALRM shares fell 1.4% to $56.76, while the company trades near its 12-month high of $59.38. Alarm.com recently exceeded quarterly earnings and revenue expectations, reporting $0.77 in EPS and $277.73 million in revenue.
• Analyst sentiment remains generally favorable, with an average “Moderate Buy” rating and a $55 price target; institutional investors own approximately 91.74% of the company.

Alarm.com Holdings, Inc. (NASDAQ:ALRM - Get Free Report) CEO Stephen Trundle sold 50,000 shares of Alarm.com stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $57.67, for a total transaction of $2,883,500.00. Following the transaction, the chief executive officer owned 324,842 shares in the company, valued at approximately $18,733,638.14. The trade was a 13.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link.

Alarm.com Stock Down 1.4%

Shares of ALRM stock traded down $0.82 on Tuesday, reaching $56.76. 230,721 shares of the company's stock traded hands, compared to its average volume of 471,916. The company has a market capitalization of $2.81 billion, a P/E ratio of 25.12, a price-to-earnings-growth ratio of 1.83 and a beta of 0.76. Alarm.com Holdings, Inc. has a 12-month low of $41.49 and a 12-month high of $59.38. The company has a debt-to-equity ratio of 0.57, a quick ratio of 4.38 and a current ratio of 4.96. The business's 50 day moving average price is $51.88 and its two-hundred day moving average price is $47.68.

Alarm.com (NASDAQ:ALRM - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The software maker reported $0.77 EPS for the quarter, topping the consensus estimate of $0.65 by $0.12. The business had revenue of $277.73 million during the quarter, compared to analysts' expectations of $264.96 million. Alarm.com had a net margin of 11.11% and a return on equity of 15.65%. The firm's quarterly revenue was up 9.2% compared to the same quarter last year. During the same period last year, the company posted $0.60 earnings per share. Alarm.com has set its FY 2026 guidance at 2.920-2.940 EPS. On average, equities analysts forecast that Alarm.com Holdings, Inc. will post 2.47 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have commented on ALRM shares. Zacks Research raised shares of Alarm.com from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 19th. Barclays upped their price target on Alarm.com from $55.00 to $60.00 and gave the stock an "equal weight" rating in a research note on Monday, August 10th. Weiss Ratings raised Alarm.com from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, July 29th. Wall Street Zen upgraded Alarm.com from a "hold" rating to a "buy" rating in a report on Sunday, August 16th. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and set a $65.00 target price on shares of Alarm.com in a research report on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $55.00.

Institutional Investors Weigh In On Alarm.com

Hedge funds have recently made changes to their positions in the stock. Amundi raised its holdings in Alarm.com by 6.8% in the 1st quarter. Amundi now owns 17,532 shares of the software maker's stock valued at $920,000 after acquiring an additional 1,113 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Alarm.com by 7.8% in the first quarter. AQR Capital Management LLC now owns 59,005 shares of the software maker's stock valued at $3,284,000 after purchasing an additional 4,246 shares in the last quarter. Woodline Partners LP bought a new position in Alarm.com in the first quarter worth $514,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Alarm.com by 4.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,200 shares of the software maker's stock worth $7,301,000 after purchasing an additional 6,080 shares during the period. Finally, Jane Street Group LLC boosted its stake in Alarm.com by 610.0% during the first quarter. Jane Street Group LLC now owns 114,715 shares of the software maker's stock worth $6,384,000 after buying an additional 98,557 shares in the last quarter. Institutional investors own 91.74% of the company's stock.

Alarm.com Company Profile

Alarm.com Holdings, Inc provides a cloud-based software platform for connected properties, enabling residential and commercial customers to monitor, manage and control security, energy and home automation solutions. The company's interactive services connect security systems, smart thermostats, door locks, lights and video cameras through cellular, broadband and Z-Wave networks, offering real-time alerts and remote access via mobile and web applications.

Through its platform, Alarm.com delivers an integrated suite of products that includes intrusion detection, video monitoring and cloud recording, energy management features such as smart thermostat scheduling, and home automation controls for lighting, garage doors and connected appliances.

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