An Alarm.com Insider Sold 10,000 Company Shares. Here's a Deeper Look at the Transaction.
Key Points
Chief Legal and Compliance Officer Daniel Ramos sold 10,000 shares in open-market transactions across two dates, with a combined value of ~$463,000 at a weighted average price of around $46.28 per share.
This trade represented 15.85% of Ramos's direct holdings, reducing direct ownership from 63,099 to 53,099 shares.
The transaction is the largest individual sale by Ramos to date, reflecting a higher proportion of holdings traded as available share capacity has declined over time.
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Daniel Ramos, Chief Legal and Compliance Officer, reported the sale of 10,000 shares of Alarm.com (NASDAQ:ALRM) on June 10 and June 12, 2026, for a total transaction value of approximately $463,000, according to an SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded (direct) | 10,000 |
| Transaction value | ~$463,000 |
| Post-transaction shares (direct) | 53,099 |
| Post-transaction value (direct ownership) | ~$2.5 million |
Transaction value based on SEC Form 4 weighted average reported price ($46.28); post-transaction value based on June 12, 2026 market close ($46.65).
Key questions
- How does this sale compare to Daniel Ramos's prior insider trading activity at Alarm.com?
The 10,000-share sale is the largest direct open-market transaction executed by Ramos, exceeding his previous maximum sale of 8,762 shares and surpassing the average of 3,257 shares per sell event as tracked over five prior sales. - What proportion of Ramos's holdings was affected, and what does this imply about his remaining share capacity?
This transaction reduced Ramos's direct holdings by 15.85%, bringing his ownership to 53,099 shares, which is less than half of the 113,941 shares held in August 2023, indicating that declining available share capacity now drives larger proportional trades. - Were any indirect or derivative holdings involved in this transaction?
No; all shares sold were from Ramos's direct holdings, with no participation by trusts, LLCs, or option exercises, and neither indirect nor derivative ownership remains post-transaction. - How does the transaction's timing relate to current market context for Alarm.com?
The sales were completed at a weighted average price of around $46.28 per share, near the June 12, 2026, market close, during a period where shares had declined 21.45% over the previous 12 months, suggesting liquidity was prioritized over market timing considerations.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.04 billion |
| Net income (TTM) | $128.21 million |
| Price (as of market close June 12, 2026) | $46.65 |
| 1-year price change | -21.45% |
Note: 1-year performance calculated using June 12, 2026 as the reference date.
Company snapshot
- Alarm.com delivers cloud-based interactive security, automation, video surveillance, and energy management solutions for residential and commercial properties, including smart locks, sensors, cameras, and IoT devices.
- It generates revenue primarily through recurring service subscriptions and platform licensing to service providers, complemented by direct sales, support, and training programs.
- The company serves a broad customer base of homeowners, commercial enterprises, service providers, and home builders across the United States and internationally.
Alarm.com operates at scale as a leading provider of cloud-enabled security and automation platforms for connected properties. Its integrated solutions and recurring revenue model support a defensible market position in the smart property technology sector.
The company leverages advanced video analytics, automation, and energy management to deliver differentiated value to both residential and commercial clients.
What this transaction means for investors
The June 10 and June 12 sale of Alarm.com shares by the company’s Chief Legal and Compliance Officer, Daniel Ramos, came not long after the stock hit a 52-week low of $41.49 in May. Alarm.com’s price-to-sales ratio of 2.5 is around a low point for the past year, indicating now is a good time to buy, not sell, if you held a conviction that the stock could bounce back.
Why Ramos decided to sell at this inopportune time is not known, but he did retain a sizable equity stake in Alarm.com with over 53,000 shares remaining post-transaction. This suggests he is not in a rush to dispose of his holdings.
The stock is down because the company’s 2026 full-year revenue guidance underwhelmed Wall Street. Alarm.com forecasted sales to reach between $1.06 billion to $1.07 billion this year, which is a modest increase over the prior year’s $1.01 billion.
Of course, the company could exceed its guidance. Revenue rose a strong 11% year over year to $265.2 million in the first quarter. Alarm.com added new artificial intelligence capabilities to its security offerings, which may help to drive up future sales.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Alarm.com. The Motley Fool has a disclosure policy.
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