Alarm.com Holdings Corporate Secretary Daniel Ramos Sells 93% Of Holding

We'd be surprised if Alarm.com Holdings, Inc. (NASDAQ:ALRM) shareholders haven't noticed that the Corporate Secretary, Daniel Ramos, recently sold US$404k worth of stock at US$57.68 per share. In particular, we note that the sale equated to a 93% reduction in their position size, which doesn't exactly instill confidence.

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The Last 12 Months Of Insider Transactions At Alarm.com Holdings

The President of Platforms Business, Daniel Kerzner, made the biggest insider sale in the last 12 months. That single transaction was for US$521k worth of shares at a price of US$66.40 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$57.58. So it is hard to draw any strong conclusion from it.

In the last year Alarm.com Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Alarm.com Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Alarm.com Holdings insiders own 4.9% of the company, worth about US$139m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Alarm.com Holdings Insiders?

Insiders haven't bought Alarm.com Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Alarm.com Holdings makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Alarm.com Holdings you should know about.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.