Arlo Technologies (NYSE:ARLO) Shares Down 8.6% – Time to Sell?

Arlo Technologies, Inc. (NYSE:ARLO)’s stock price fell 8.6% on Wednesday. The stock traded as low as $11.73 and last traded at $11.7030. 677,178 shares changed hands during trading, a decline of 49% from the average daily volume of 1,338,917 shares. The stock had previously closed at $12.80.

Wall Street Analysts Forecast Growth

ARLO has been the topic of a number of analyst reports. Weiss Ratings lowered Arlo Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, August 3rd. Piper Sandler boosted their price objective on Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Wall Street Zen downgraded Arlo Technologies from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 5th. Finally, William Blair initiated coverage on Arlo Technologies in a research note on Tuesday, July 7th. They set an “outperform” rating on the stock. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Arlo Technologies currently has an average rating of “Moderate Buy” and a consensus target price of $20.60.

Arlo Technologies Price Performance

The firm’s fifty day moving average price is $13.53 and its 200-day moving average price is $13.52. The company has a market cap of $1.32 billion, a price-to-earnings ratio of 45.18 and a beta of 1.60.

Arlo Technologies (NYSE:ARLO) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.08. Arlo Technologies had a return on equity of 17.29% and a net margin of 5.20%.The company had revenue of $155.94 million for the quarter, compared to analysts’ expectations of $148.94 million. During the same quarter in the previous year, the company posted $0.17 earnings per share. The business’s revenue for the quarter was up 20.5% compared to the same quarter last year. Arlo Technologies has set its FY 2026 guidance at 0.900-1.000 EPS and its Q3 2026 guidance at 0.170-0.230 EPS. As a group, equities analysts forecast that Arlo Technologies, Inc. will post 0.12 earnings per share for the current fiscal year.

Insider Transactions at Arlo Technologies

In other news, CFO Kurtis Binder sold 83,211 shares of the firm’s stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $12.44, for a total transaction of $1,035,144.84. Following the completion of the transaction, the chief financial officer owned 358,899 shares in the company, valued at approximately $4,464,703.56. This trade represents a 18.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 137,837 shares of company stock worth $1,836,543 over the last quarter. 2.90% of the stock is owned by insiders.

Institutional Trading of Arlo Technologies

A number of hedge funds have recently bought and sold shares of ARLO. GAMMA Investing LLC raised its stake in Arlo Technologies by 15.7% during the 3rd quarter. GAMMA Investing LLC now owns 6,647 shares of the company’s stock valued at $82,000 after purchasing an additional 904 shares during the period. Tidal Investments LLC grew its holdings in shares of Arlo Technologies by 11.3% during the 2nd quarter. Tidal Investments LLC now owns 128,332 shares of the company’s stock valued at $1,730,000 after acquiring an additional 13,033 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in Arlo Technologies in the 2nd quarter worth about $29,000. Baird Financial Group Inc. increased its holdings in Arlo Technologies by 17.5% in the second quarter. Baird Financial Group Inc. now owns 15,715 shares of the company’s stock worth $212,000 after buying an additional 2,341 shares during the last quarter. Finally, Amundi increased its stake in shares of Arlo Technologies by 17.4% during the 2nd quarter. Amundi now owns 71,228 shares of the company’s stock worth $960,000 after purchasing an additional 10,577 shares during the last quarter. 83.18% of the stock is owned by hedge funds and other institutional investors.

Arlo Technologies Company Profile

Arlo Technologies, Inc develops connected smart home security products and services. Its portfolio includes wire-free and wired security cameras, video doorbells, floodlight cameras, baby monitors and related accessories designed for residential and small-business use.

The company combines its hardware with cloud-based software and subscription services, including Arlo Secure. These services provide features such as video storage, activity notifications, person, vehicle and package detection, emergency response options and other monitoring and security capabilities, depending on the product and service plan.

Arlo was established as a standalone company following its separation from Netgear and became an independent publicly traded company in 2018.