Long Position on ALRM @ $39.80 on 3/15/2018 (Momentum)

Alarm.com Holdings, Inc. (ALRM) provides cloud-based software platform solutions for smart residential and commercial properties in the United States and internationally.

The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, thermostats, garage doors, and video cameras; and high definition video monitoring solutions, such as live streaming, smart clip capture, secure cloud storage, video alerts, continuous HD recording, and commercial video surveillance solutions.

It also offers intelligent automation and energy management solutions, including scenes button, which adjust multiple devices; smart thermostat schedules; responsive savings; precision comfort; energy usage and environmental monitoring; geo-services; and demand response programs.

In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, access control, operational insights, early problem identification, simple to use, professionally supported, and easy to maintain.

Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; installation and support tools; business management services; and sales, marketing, and training services, as well as wellness solutions. 

Shares have formed a bullish "double bottom" and higher share prices are expected. Note the 50-day moving average shown in brown. The company posted a strong quarterly report two weeks ago. Alarm.com reported total net revenues of $88.8 million in the fourth quarter, reflecting a decrease of 2% sequentially but an increase of 27.2% year over year. Gross margin was 68.6%, up 690 bps from the year-ago quarter. For 2018, non-GAAP adjusted earnings per share are expected within $1.12-$1.14. 

52-Weeks Trading Range: $29.70 - $49.49

Entry Point: $39.80

Stop Loss: $37.75

Target Price: $43.78

Updates

5/22/2018 9:47:05 AM

ALRM closed at $42.69

Position closed on 5/22/2018 at price of $42.69 with a 7.26% gain in 68 days.

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