Arlo Technologies (NYSE:ARLO) Shares Down 7.3% on Insider Selling

Shares of Arlo Technologies, Inc. (NYSE:ARLO) were down 7.3% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $14.43 and last traded at $14.1310. Approximately 172,275 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 1,372,877 shares. The stock had previously closed at $15.25.

Specifically, CFO Kurtis Joseph Binder sold 65,000 shares of Arlo Technologies stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $15.70, for a total transaction of $1,020,500.00. Following the completion of the sale, the chief financial officer owned 499,885 shares of the company’s stock, valued at approximately $7,848,194.50. The trade was a 11.51% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ARLO. Weiss Ratings raised shares of Arlo Technologies from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday. Raymond James Financial restated an “outperform” rating and set a $19.00 price objective on shares of Arlo Technologies in a report on Friday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $22.33.

Arlo Technologies Stock Down 0.4%

The firm has a market capitalization of $1.40 billion, a price-to-earnings ratio of 47.79 and a beta of 1.60. The company’s 50 day moving average is $14.23 and its 200 day moving average is $14.15.

Arlo Technologies (NYSE:ARLO) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.09. The firm had revenue of $150.38 million during the quarter, compared to the consensus estimate of $139.73 million. Arlo Technologies had a net margin of 5.47% and a return on equity of 18.66%. The business’s revenue for the quarter was up 26.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.15 EPS. Arlo Technologies has set its Q2 2026 guidance at 0.17-0.230 EPS. On average, analysts expect that Arlo Technologies, Inc. will post 0.16 EPS for the current year.

Arlo Technologies declared that its board has approved a share buyback program on Wednesday, March 4th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 3.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Arlo Technologies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in shares of Arlo Technologies by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 10,691,336 shares of the company’s stock worth $149,572,000 after purchasing an additional 32,770 shares during the period. Brandes Investment Partners LP increased its holdings in Arlo Technologies by 27.6% in the 4th quarter. Brandes Investment Partners LP now owns 8,198,707 shares of the company’s stock valued at $114,700,000 after buying an additional 1,772,063 shares during the period. Wasatch Advisors LP raised its position in shares of Arlo Technologies by 17.7% in the 3rd quarter. Wasatch Advisors LP now owns 5,505,467 shares of the company’s stock valued at $93,318,000 after buying an additional 826,587 shares in the last quarter. State Street Corp raised its position in shares of Arlo Technologies by 5.3% in the 2nd quarter. State Street Corp now owns 4,272,925 shares of the company’s stock valued at $72,469,000 after buying an additional 215,867 shares in the last quarter. Finally, Rice Hall James & Associates LLC lifted its holdings in shares of Arlo Technologies by 2.9% during the 4th quarter. Rice Hall James & Associates LLC now owns 3,576,612 shares of the company’s stock worth $50,037,000 after acquiring an additional 100,831 shares during the period. 83.18% of the stock is owned by institutional investors and hedge funds.

Arlo Technologies Company Profile

Arlo Technologies, Inc (NYSE: ARLO) is a provider of smart home security products and services designed for residential and small business customers. The company offers a portfolio of wireless and Wi-Fi-enabled security cameras, video doorbells, smart lighting solutions, and associated accessories. Arlo integrates advanced video analytics, motion detection, cloud storage, and two-way audio capabilities to deliver end-to-end security and monitoring solutions accessible through mobile applications and web interfaces.

Founded as a division of Netgear, Inc in 2014 and spun off as an independent public company in 2018, Arlo Technologies has established a presence in North America, Europe, Australia and parts of Asia.