Alarm.com Short Interest Ratio and Short Volume

Short interest is the volume of Alarm.com shares that have been sold short but have not yet been covered or closed out. As of January 29th, traders have sold 3,040,000 shares of ALRM short. 6.80% of Alarm.com's shares are currently sold short. View details.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. Alarm.com currently has a short interest ratio of 7.0.

Companies that have a short interest as a percentage of float below 10% indicates positive investor sentiment and few short sellers. Stocks with a short interest percentage above 10% is considered high, suggesting some investors are pessimistic about the stock. Companies with a short interest percentage of 20% or more indicates widespread negative sentiment. 6.80% of Alarm.com's floating shares are currently sold short.

Alarm.com saw a increase in short interest during the month of January. As of January 29th, there was short interest totaling 3,040,000 shares, an increase of 13.9% from the previous total of 2,670,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

Alarm.com currently has issued a total of 49,112,000 shares. Some of Alarm.com's outstanding shares are available for trading, while others are subject to various restrictions. The public float, also referred to as floating shares or "the float", are shares that publicly owned, unrestricted and available to trade on the open market. Alarm.com currently has a public float of 44,710,000 shares.

6.80% of Alarm.com's shares are currently sold short. Here is how the short interest of companies in the industry of "prepackaged software" compare to Alarm.com: SS&C Technologies Holdings, Inc. (0.75%), Citrix Systems, Inc. (4.20%), PTC Inc. (1.33%), Check Point Software Technologies Ltd. (8.59%), Dynatrace, Inc. (4.03%), NICE Ltd. (0.00%), Bill.com Holdings, Inc. (9.32%), Avalara, Inc. (0.00%), Elastic (12.75%), and Ceridian HCM Holding Inc. (3.94%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Aon Plc ($5.34 billion), Charter Communications, Inc. ($5.03 billion), ViacomCBS Inc. ($4.99 billion), DuPont de Nemours, Inc. ($4.72 billion), Analog Devices, Inc. ($4.57 billion), Snap Inc. ($3.87 billion), Moderna, Inc. ($3.58 billion), Futu Holdings Limited ($2.75 billion), Snowflake Inc. ($2.43 billion), and Palantir Technologies Inc. ($2.18 billion). View all of the most shorted stocks.

Short selling ALRM is an investing strategy that aims to generate trading profit from Alarm.com as its price is falling. Alarm.com's stock is trading down $0.03 today. To short Alarm.com stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that Alarm.com will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for Alarm.com occurs when it has a large amount of short interest and its stock increases in price. This forces short sellers to cover their short interest positions by buying actual shares of ALRM, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including ALRM, twice per month. The most recent reporting period available is January, 29 2021.