Long Position on SWIR @ $21.50 on 6/30/2022 (Momentum)

Sierra Wireless, Inc. (SWIR) provides device-to-cloud Internet of Things (IoT) solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. 

It operates in two segments, IoT Solutions and Enterprise Solutions.

The IoT Solutions segment offers cellular wireless IoT modules that provides original equipment manufacturers (OEMs) with 5G, 4G LTE, third generation/second generation, low power wide area, Wi-Fi, Bluetooth, and global navigation satellite system connectivity; embedded broadband solutions, including industrial-grade modules, which offers speed, bandwidth, and network performance for connecting to 5G and 4G networks; and IoT connectivity services.

The Enterprise Solutions segment provides a range of Sierra Wireless AirLink routers, IoT applications and advanced network management, managed network services, and mobility applications. This segment also offers asset, fleet, and cargo tracking services; offender and remote monitoring services; and alarm communications, as well as a cloud platform that comprises reporting and analytics.

The company serves enterprises, industrial companies, and OEMs through direct and indirect channels, such as OEMs, distributors, value-added resellers, and mobile network operators. On May 11th, Sierra Wireless reported 1st Quarter March 2022 earnings of $0.16 per share on revenue of $173.0 million. The consensus estimate was a loss of $0.11 per share on revenue of $141.3 million. Revenue grew 60.1% on a year-over-year basis.

The company said it expects second quarter revenue of $160.0 million to $175.0 million. The previous consensus revenue estimate was $145.64 million for the quarter ending June 30, 2022.

Shares are heading higher in an upward trading channel. Higher share prices are expected. 

Entry Point: $21.50

Stop Loss: $20.00

Trading Range: $13.44 - $25.08

Target Price: $25.00

Position closed on 7/6/2022 at price of $23.80 with a 10.70% gain in 6 days.

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