Alarm.com Holdings, Inc. (ALRM), a cloud-based software platform solutions company yesterday reported their fourth quarter and full year 2016 financial results. Alarm reported adjusted fourth-quarter earnings of $0.19 per share which beat analyst expectations of $0.13 per share. Alarm reported fourth quarter revenues of $69.8 million which beat analyst expectations of $64 million.

Alarm.com Holdings, Inc. CEO’s Comments

“We’re pleased to report solid results for the quarter as we closed another year of continued growth and profitability,” said Steve Trundle, President and CEO of Alarm.com.  “During the year, we launched innovative new technology for our service provider partners, and we continued to develop growth initiatives that we believe will allow us to extend the Alarm.com platform into new markets in the future.  With the acquisition of Connect and Piper from Icontrol Networks now completed, we can grow our research and development capacity and further increase our participation in the Internet of Things secular trend.”  Globe Newswire

ALRM Technical Analysis

(Click on image to enlarge)

ALRM opened trading yesterday at $30.36 which was up from the previous day’s trading close of $30.29. ALRM closed trading yesterday at $30.63 and spiked down after-market to $33.50, equivalent to a 9% increase from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as with the spike up ALRM is now trading at all-time highs.

Taking a closer look at the daily chart we can see that before the spike up ALRM had already been in an overall upward trend dating back to February 8th when it traded at $27.14. ALRM has a float of 15.66 million shares and traded 1.78 times the normal daily trading volume on Wednesday.

For trading purposes, I would like to see ALRM open trading on Thursday above $32.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.