Tax-driven Alarm.com (NASDAQ: ALRM) share sale reported by officer
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Alarm.com Holdings, Inc. officer Daniel Ramos reported a mandated sale of common stock tied to equity compensation taxes. On May 18, 2026, he sold 1,561 shares of common stock at a weighted average price of $43.56 per share in an open‑market transaction.
According to the notes, the sale was required to cover tax withholding obligations from the settlement of vested restricted stock units under the company’s equity incentive plans and was executed as a broker "sell to cover" transaction, not a discretionary trade. After this transaction, Ramos directly held 65,631 shares of Alarm.com common stock.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Net Seller: 1,561 shares ($67,997)
Net Sell
1 txn
Insider
Ramos Daniel
Role
See Remarks
Sold
1,561 shs ($68K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 1,561 | $43.56 | $68K |
Holdings After Transaction:
Common Stock — 65,631 shares (Direct, null)
Footnotes (1)
- Represents the number of shares required to be sold by the Reporting Person to cover the tax withholding obligation in connection with the settlement of vested restricted stock units. This sale is mandated by the Issuer's election under its equity incentive plans to require the Reporting Person to fund this tax withholding obligation by completing a "sell to cover" transaction with a brokerage firm designated by the Issuer. This sale does not represent a discretionary trade by the Reporting Person. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $42.92 - $43.80, inclusive. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote to this Form 4.
Key Figures
Shares sold: 1,561 shares
Weighted average sale price: $43.56 per share
Post-transaction holdings: 65,631 shares
+1 more
4 metrics
Shares sold
1,561 shares
Common Stock sold on May 18, 2026
Weighted average sale price
$43.56 per share
Open-market sale to cover tax withholding
Post-transaction holdings
65,631 shares
Common Stock directly held after sale
Price range of trades
$42.92–$43.80 per share
Multiple transactions comprising the reported weighted average
Key Terms
restricted stock units, sell to cover, weighted average price
3 terms
restricted stock units financial
"in connection with the settlement of vested restricted stock units."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
sell to cover financial
"to fund this tax withholding obligation by completing a "sell to cover" transaction"
Sell to cover is when a person who receives company stock through options or awards sells just enough shares immediately to pay required taxes, exercise costs, or fees, keeping the rest. Think of it like cashing part of a bonus to cover the tax bill so you can keep the remainder. For investors, it can create predictable small selling pressure and slightly change the number of shares actually held by insiders without increasing long‑term dilution.
weighted average price financial
"The price reported in Column 4 is a weighted average price."
Weighted average price is the average price of a security where each trade or component is counted according to its size, so bigger trades pull the average more than smaller ones. Think of it like calculating the average cost of a grocery haul where items you bought more of have greater influence on the final per-item cost. Investors use it to understand the true average price paid or received, judge execution quality, and compare trading performance against market movement.
FAQ
What insider transaction did Alarm.com (ALRM) report for Daniel Ramos?
Alarm.com officer Daniel Ramos reported selling 1,561 shares of common stock. The transaction occurred on May 18, 2026, and was tied to tax withholding on vested restricted stock units under the company’s equity incentive plans, rather than a discretionary stock sale.
Why did Daniel Ramos sell Alarm.com (ALRM) stock according to the Form 4?
The sale was required to cover tax withholding obligations from the settlement of vested restricted stock units. Alarm.com’s equity incentive plans mandated a broker "sell to cover" transaction, meaning the sale was for tax purposes and not a discretionary investment decision by Ramos.
Was the Daniel Ramos Alarm.com (ALRM) stock sale a discretionary trade?
No. The filing explicitly states the sale was mandated by the company’s election under its equity incentive plans. The shares were sold to fund tax withholding via a designated brokerage firm and therefore do not represent a discretionary trade by Ramos.