indie Semiconductor, Inc.

indie Semiconductor, Inc. (NASDAQ: INDI) is a global automotive semiconductor and services provider focused on edge sensors for Advanced Driver Assistance Systems such as LiDAR, connected car, user experience and electrification applications for both electric and autonomous vehicles.

Key Highlights

• The company witnessed a 147.57% growth in revenue to USD 9.18 million in Q2FY21 (ended June 30, 2021) from USD 3.71 million reported in Q2FY20, resulting from higher unit sales clubbed with the diminishing effects of the pandemic.
• Its non-GAAP gross margin for the quarter was 42.1%, up 140 basis points from 40.7% in Q2FY20.
• Net income (attributable to common shareholders) for Q2FY21 was USD 6.15 million, vs. a net loss of USD 6.86 million in Q2FY20.
• On August 31, 2021, INDI signed an agreement to acquire TeraXion Inc., a leading photonic components manufacturer, for estimated cash plus stock consideration of USD 159 million.
• In Q3FY21, its revenue is expected to grow by 30% on a sequential basis, with non-GAAP gross margin increasing ~43%.
• The company's ROE for Q2FY21 was 2.8%, lower than the industry average of 4.7%.
• Stock is trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is currently at the mid-point of the 52-week range of USD 8.00 to USD 14.94, and its RSI Index is currently at 60.56.
• Its price has surged 12.04% and declined 10.89% in the past six and nine months, respectively.

Technical Price Chart (as of September 24, 2021). Analysis by Kalkine

Conclusion: INDI's stock has been trading in the rising channel formation for the past two months and recently commenced moving up after taking support on the lower band of the pattern, indicating a potential upward trend for the stock. Considering the technical indicators, low ROE, and growth initiatives, we recommend a "Watch" rating on the stock at the current price of USD 11.45, up 2.51% as of September 24, 2021, 2:18 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.