💡 Or: “ALRM: When Your CEO Adds 26,000 Shares — Should You Sleep Better or… Leave the Lights On?”

Alarm.com (NASDAQ: ALRM, $47.64, -1.06%) wants to secure your home, your business… and now, apparently, your portfolio.

Because this week, something rare happened — something as rare as a tech stock that doesn’t burn cash:
👉 The CEO bought shares.
Not options. Not RSUs. Not “I’ll buy later when I feel like it.”
Actual shares. On the open market. With actual money. 🫡💵

Let’s break this down — with humor, icons, and enough financial insight to convince your friends you actually read SEC filings.

🔔 What Alarm.com Actually Does (Besides Waking Up Wall Street)

Think of Alarm.com as the Swiss Army Knife of connected living — but instead of toothpicks and corkscrews, it’s:

• Smart locks 🔐

• Garage doors that behave better than teenagers 🚗

• Thermostats that negotiate peace between hot and cold spouses 🌡️✌️

• Video cameras that actually work 📹

• AI-powered “Hey, that shouldn’t be happening” alerts 🤖

• Whole-home water safety 🚿💧

• Solar monitoring 🌞🔋

• Gunshot detection (no joke) 🎯

• Fleet tracking 🚚

• Multi-site commercial management 🏢🏢🏢

• Grid-level utility services ⚡

• And a subscription model that Wall Street loves more than its own mother 💳💰

If it beeps, locks, streams, detects, analyzes, schedules, or saves energy…
ALRM probably makes it smarter.

This is a company that touches residential homes, multi-family units, SMBs, enterprise facilities, and the literal electric grid.

It’s IoT on caffeine. ☕⚡

🎺 Trigger #1: The CEO Just Bought 26,000 Shares

Stephen Trundle — CEO since dinosaurs roamed the earth (okay, since 2000) — made his first ever open-market purchase:

📅 Trade Date: Nov 18, 2025
💵 Price Paid: $48.36
📦 Shares Bought: 26,000
📈 % Own Increase: +1%
💰 Value: $1.26M

That’s not token buying.

That’s “I think we’re undervalued — and I have the receipts” buying.
That’s “I know something about SaaS churn, and you don’t” buying.

Insider buying doesn’t guarantee anything…
…but CEOs buying with conviction is never a bearish signal. 🦾📈

🎺 Trigger #2: Institutions Bought the Entire Float… Plus More

Here’s where things get borderline comical:

• 98.36% of shares held by institutions

• 103.89% of FLOAT held by institutions

• Meaning:
  👉 They own more shares than technically exist.
  👉 This is the financial equivalent of borrowing your neighbor’s lawnmower so many times that you accidentally ended up owning two.

Top holders:

• BlackRock: 9.44M (18.93% of shares outstanding!)

• Vanguard: 6.23M (12.50%)

• Disciplined Growth: 3.33M

• State Street: 1.98M

• Morgan Stanley: 1.33M

• And dozens more.

In short:
Big Money likes ALRM. A LOT.
And usually, Big Money doesn’t gather around a stock unless the buffet looks promising.

For Alarm.com (ALRM)'s Institutional Ownership breakdown, 🔍 see here.

📊 Financial Check-In: Quietly Solid, Quietly Profitable

Alarm.com’s latest quarter (Q3 2025) delivered:

📈 SaaS & License Revenue: +10.1% YoY
📈 Total Revenue: +6.6%
📉 GAAP Net Income: $35.1M (down slightly from $36.5M)
📈 Non-GAAP Adj. EBITDA: +18.4% to $59.2M
📈 Adj. Net Income: +20.6% YoY
💰 Cash: $1.07B

And guidance?

• 2025 SaaS revenue raised

• 2025 adjusted EBITDA expected to reach $199M

• 2025 total revenue to hit $1B

This is a cash-generative, profitable, recurring-revenue software business…
in a world where half of SaaS companies are unprofitable and the other half are busy burning investor hopes for warmth.

 👉 Want the full picture? Dive into Alarm.com (ALRM)'s financials here.

🧮 Valuation: Reasonable… Not Cheap

Some key measures:

• PE: 20.4×

• Forward PE: 26.2×

• Price/Sales: 2.9×

• EV/EBITDA: 10.7×

This is not a clearance-sale bargain.
This is “fair price for a business that actually makes money” territory.

Reasonable?
Yes.

Cheap?
Not unless the CEO offers to throw in a free camera system.

🚀 Why Investors Might Like It

✔️ 1. Market Leader in Smart Security

They dominate the connected-home security segment.
Not by accident — by scale, by patents, by software, by dealers.

✔️ 2. Recurring SaaS Revenue

Subscription-based revenue is the stock market’s love language. 😘

✔️ 3. Profitability + Growth

Non-GAAP profit metrics are rising double digits.
Guidance is moving upward, not downward.

✔️ 4. Innovation Machine

AI deterrence, video analytics, EV charging integration…
This is a company that doesn’t sit still.

✔️ 5. Insider + Institutional Confidence

The two best types of buyers are buying at the same time.
Always a datapoint worth circling in red.

✔️ 6. Stock Down >50% From All-Time Highs

This is where “value opportunity” and “fear” shake hands awkwardly.

⚠️ Risks (Because Nothing Is Ever Easy)

❌ 1. Competition Is Vicious

Smart home + security = Amazon, Google, Ring, SimpliSafe, ADT, etc.
It’s a jungle out there. 🌴🐅

❌ 2. Market Saturation in U.S. Homes

Most people who want a smart home already have one.

❌ 3. Stock Is Not Cheap

Reasonable ≠ cheap.
Cheap ≠ safe.
Safe ≠ profitable.
(Investing is fun, right?)

❌ 4. Macro / Bear Market Risk

Security spending holds up… until it doesn’t.

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.

🎯 So… Time to Rush In or Panic?

If you like:

• Profitable SaaS

• Real-world products

• Recurring revenue

• Institutional conviction

• CEO conviction

• A stock beaten down from its highs

• And tech that actually works

Then ALRM is interesting.
Not a no-brainer.
But definitely not a panic situation.

If the business keeps growing — and margins improve — a re-rating is absolutely possible.

If not?

Well… at least their home security system will warn you before the stock drops. 😉🔔

⚡ Quick Take / TL;DR

CEO buys $1.26M in shares.
Institutions own the whole float (+ a bit extra).
ALRM remains profitable, growing, and cash-rich.
Valuation is fair, not cheap.
Stock is down 50%+ from the highs.
Interesting setup for patient investors… with nerves of steel and good Wi-Fi.

❓ FAQ

Is Alarm.com profitable?

Yes — both GAAP and non-GAAP profitable, with strong recurring revenue.

Is the insider buy meaningful?

Yes. It’s the CEO’s first ever. That’s not nothing.

Is the valuation cheap?

No. It’s reasonable. Which is code for “you could do worse.”

Does the company face risk?

Competition, market saturation, macro. Nothing exotic — but real.

Is this a turnaround or a sleeper stock?

Both. It’s quietly strong… but needs sentiment to catch up.

🧾⚠️📢 Fun(anc1al) but Serious Disclaimer: 🧾⚠️📢

No panic buttons were pressed in the making of this article. Just jokes. 🛎️😏 This is education and entertainment, not personalized financial advice. 🧾  We’re not your advisors — we’re your FUNanc1al narrators. 🎪📉➡️📈 

Even if your house is fully secured, your investments never are. Proceed with humor - and caution. 🚨📉. Always DYOR, talk to a qualified advisor if needed, size positions to your risk tolerance, and never invest money you can’t afford to lose.

Invest at your own risk. 💸💧 

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