Alarm.com (NASDAQ:ALRM) Holdings, Inc. (NASDAQ:ALRM) CEO Stephen Trundle has sold a portion of his company stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on April 2, 2024, involved the sale of 3,217 shares at prices ranging from $69.46 to $70.45, with a weighted average price of $70.00 per share. The total value of the shares sold amounted to $225,190.
The reported sale was conducted to cover tax withholding obligations related to the settlement of vested Restricted Stock Units (RSUs). According to the footnote in the filing, this "sell to cover" transaction is mandated by Alarm.com's equity incentive plans, which require the CEO to fund this tax obligation through a designated brokerage firm. The filing emphasizes that this sale was not a discretionary trade by Trundle.
In addition to the sale, a footnote disclosed that Trundle made a bona fide charitable contribution of 5,000 shares of Alarm.com stock to a donor-advised fund on March 1, 2024. No monetary transaction took place as this was a charitable contribution, and therefore, the total value of the transaction was $0.
The filing also provided insight into Trundle's remaining holdings in Alarm.com. It noted indirect ownership through various entities, including Backbone Partners, LLC, the Stephen Trundle 2015 Gift Trust, and the Footings Advancement Trust. Trundle has sole voting and disposal power over the shares held by these entities but disclaims beneficial ownership except for his pecuniary interest.
The SEC Form 4 filing, signed on behalf of Trundle by Attorney-in-Fact Daniel Ramos on April 3, 2024, reflects the CEO's latest stock transactions and provides transparency into the executive's dealings with Alarm.com's equity.
InvestingPro Insights
Alarm.com Holdings , Inc. (NASDAQ:ALRM) has shown a resilient financial position in recent times, as reflected in key metrics and analyst insights. With a market capitalization of $3.52 billion, the company stands as a significant player in its sector. A notable highlight from the InvestingPro Data is Alarm.com's Price to Earnings (P/E) ratio, which currently stands at 43.26. This figure indicates a high valuation compared to the market average, suggesting that investors are expecting higher earnings growth from the company in the future. The P/E ratio adjusted for the last twelve months as of Q4 2023 is slightly lower at 39.13, which could imply a slight improvement in earnings or a reduction in share price since the last annual report.
InvestingPro Tips for Alarm.com highlight that the company holds more cash than debt on its balance sheet, providing a strong liquidity position which could be a reassuring factor for investors concerned about the CEO's recent stock sale. Additionally, analysts have revised their earnings upwards for the upcoming period, indicating potential optimism about the company's future performance. Alarm.com's stock also trades with low price volatility, which can be attractive for investors seeking stability in their investments.
For those interested in delving deeper into Alarm.com's financial health and future prospects, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available at https://www.investing.com/pro/ALRM, which can provide a comprehensive analysis of the company's valuation, profitability, and stock performance trends. To access these insights and more, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Overall, the InvestingPro Data and Tips provide a valuable context for understanding the implications of the CEO's recent stock transactions and the company's broader financial health.
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