Alarm.com (ALRM) CEO tax sell-to-cover of 6,073 shares after RSU vesting
Rhea-AI Filing Summary
Alarm.com Holdings, Inc. CEO Stephen Trundle reported an open‑market sale of 6,073 shares of Common Stock at a weighted average price of $43.78 per share. According to the disclosure, these shares were sold solely to cover tax withholding obligations tied to the settlement of vested restricted stock units under the company’s equity plans, using a mandated “sell to cover” arrangement, so the transaction was not a discretionary trade.
Following this sale, Trundle holds 324,842 shares directly. He also has indirect holdings reported as 1,315,343 shares through Backbone Partners, LLC, 259,687 shares through the Stephen Trundle 2015 Gift Trust, and 9,862 shares through the Footings Advancement Trust, with various disclaimers of beneficial ownership and differing voting and disposition powers over those entities. The sale price reflects multiple trades between $43.57 and $44.00.
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Insider Trade Summary 10b5-1
Net Seller: 6,073 shares
Net Sell
4 txns
Insider
Trundle Stephen
Role
Chief Executive Officer
Sold
6,073 shs ($266K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Common Stock | 6,073 | $43.78 | $266K |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Common Stock — 324,842 shares (Direct);
Common Stock — 1,315,343 shares (Indirect, By LLC);
Common Stock — 259,687 shares (Indirect, By Gift Trust);
Common Stock — 9,862 shares (Indirect, By Footings Advancement Trust)
Footnotes (5)
- F1. 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.
- F2. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $43.57 - $44.00, 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.
- F3. These shares are owned by Backbone Partners, LLC ("Backbone"). The Reporting Person has the sole power to vote and dispose of the shares held by Backbone. The Reporting Person disclaims beneficial ownership of the shares owned by Backbone except to the extent, if any, of his pecuniary interest therein.
- F4. These shares are owned by the Stephen Trundle 2015 Gift Trust (the "Trust"). Certain members of the Reporting Person's immediate family are beneficiaries of the Trust. The Reporting Person disclaims beneficial ownership of the shares owned by the Trust except to the extent, if any, of his pecuniary interest therein.
- F5. These shares are owned by the Footings Advancement Trust (the "Advancement Trust"). The Reporting Person has the sole power to vote and dispose of the shares held by the Advancement Trust and certain members of the Reporting Person's immediate family are beneficiaries. The Reporting Person disclaims beneficial ownership of the shares owned by the Advancement Trust except to the extent, if any, of his pecuniary interest therein.
Key Figures
Shares sold: 6,073 shares
Weighted average sale price: $43.78 per share
Direct holdings after sale: 324,842 shares
+3 more
6 metrics
Shares sold
6,073 shares
Open-market sale to cover tax withholding
Weighted average sale price
$43.78 per share
Shares sold in range $43.57–$44.00
Direct holdings after sale
324,842 shares
Common Stock held directly by CEO post-transaction
Backbone Partners, LLC holdings
1,315,343 shares
Indirect holdings with sole voting and disposition power
2015 Gift Trust holdings
259,687 shares
Indirect holdings for family beneficiaries; beneficial ownership disclaimed
Footings Advancement Trust holdings
9,862 shares
Indirect holdings with sole voting power; family beneficiaries
Key Terms
restricted stock units, sell to cover, weighted average price, pecuniary interest, +1 more
5 terms
restricted stock units financial
"tax withholding obligation 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
"require the Reporting Person 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.
pecuniary interest financial
"disclaims beneficial ownership of the shares owned by Backbone except to the extent, if any, of his pecuniary interest therein."
beneficial ownership financial
"The Reporting Person disclaims beneficial ownership of the shares owned by the Trust"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What did Alarm.com (ALRM) CEO Stephen Trundle report in this Form 4?
Stephen Trundle reported selling 6,073 shares of Alarm.com Common Stock. The shares were sold at a weighted average price of $43.78 per share to satisfy tax withholding obligations from vested restricted stock units, under a mandated “sell to cover” arrangement.
Why were Alarm.com (ALRM) restricted stock units mentioned in the CEO’s Form 4?
The sale was triggered by the settlement of vested restricted stock units. When these units vested, the CEO incurred tax obligations, and the company’s equity plans required a “sell to cover” transaction so shares were sold automatically to fund the related tax withholding.