Alarm.com Holdings (NASDAQ:ALRM) – Sell or Short Recommendation – PT $15.50

December 23, 2015, concludes the 180-day lockup period on Alarm.com Holdings (NASDAQ:ALRM).

We previewed the event on our IPO Insights platform.

When the lockup period ends for ALRM, its pre-IPO shareholders, directors and executives will have the chance to sell their ~37 million shares. The potential for a sudden increase in stock available in the open market may cause a significant decrease in ALRM shares.

 

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The event could open a short opportunity for aggressive investors.

Early Market Performance: Strong Start

Alarm.com Holdings priced its IPO at $14 per share, at the mid-point of its expected price range of $13 to $15. The stock opened on the first day of trading at $16.05 and closed at $16.88 for an increase of 20 percent. Since then the stock reached a low of $11.45 on September 29 and a high of $19.14 on November 25. Currently, the stock trades at $16.78 (afternoon sessions 12.9.2015).

(Nasdaq.com)

Business Summary: Technology Platform for Connected Home and Business Security Services

Alarm.com provides a technology platform for connected services that operate residential and commercial security systems. Its intelligent cloud-based services integrate with mobile and other devices to deliver interactive security, energy management, video monitoring, access control and other automation solutions through a single, intuitive mobile app. The company serves its customers through a network of dealers in the United States and internationally.

Alarm.com’s SaaS platform gives families and business owners the capability to control a wide array of connected devices including garage doors, door locks, video cameras, flood sensors, water valves, security sensors, solar panels, shades, lights, image sensors, and thermostats. The company has over 2.3 million subscribers that connect over 25 million devices. The company notes that in 2014 its subscribers generated over 20 billion data points through the Alarm.com platform, which made it the largest connected home platform that year in the US.

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