Arlo Technologies (NYSE:ARLO) Downgraded to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Arlo Technologies from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with a $20.60 price target.
• Arlo exceeded quarterly expectations, reporting $0.28 in earnings per share versus the $0.20 estimate and $155.94 million in revenue, up 20.5% year over year.
• The stock opened at $13.90, with a $1.51 billion market capitalization; institutional investors own 83.18% of shares, while company insiders have recently sold stock.

Arlo Technologies (NYSE:ARLO - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

A number of other analysts have also weighed in on ARLO. Piper Sandler increased their price objective on shares of Arlo Technologies from $17.00 to $18.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. William Blair initiated coverage on Arlo Technologies in a research report on Tuesday, July 7th. They set an "outperform" rating for the company. Oppenheimer started coverage on Arlo Technologies in a research note on Monday, May 18th. They set an "outperform" rating and a $20.00 target price on the stock. Weiss Ratings downgraded Arlo Technologies from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, August 3rd. Finally, UBS Group set a $20.00 price target on Arlo Technologies in a research note on Monday, May 18th. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $20.60.

Arlo Technologies Stock Performance

NYSE ARLO opened at $13.90 on Friday. The stock has a 50 day moving average price of $13.64 and a 200-day moving average price of $13.57. Arlo Technologies has a one year low of $11.05 and a one year high of $19.94. The company has a market capitalization of $1.51 billion, a P/E ratio of 51.48 and a beta of 1.54.

Arlo Technologies (NYSE:ARLO - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.08. The company had revenue of $155.94 million for the quarter, compared to analysts' expectations of $148.94 million. Arlo Technologies had a net margin of 5.20% and a return on equity of 17.29%. Arlo Technologies's quarterly revenue was up 20.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.17 earnings per share. 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 predict that Arlo Technologies will post 0.12 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Kurtis Binder sold 27,297 shares of Arlo Technologies stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $15.52, for a total transaction of $423,649.44. Following the completion of the sale, the chief financial officer owned 442,110 shares in the company, valued at $6,861,547.20. This trade represents a 5.82% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 57,775 shares of company stock worth $845,139. Company insiders own 2.90% of the company's stock.

Institutional Trading of Arlo Technologies

Several institutional investors and hedge funds have recently modified their holdings of ARLO. Amundi boosted its holdings in shares of Arlo Technologies by 17.4% in the second quarter. Amundi now owns 71,228 shares of the company's stock valued at $960,000 after purchasing an additional 10,577 shares during the period. California State Teachers Retirement System increased its holdings in Arlo Technologies by 1,446.2% during the 2nd quarter. California State Teachers Retirement System now owns 1,532,892 shares of the company's stock worth $20,663,000 after purchasing an additional 1,433,750 shares during the period. AXQ Capital LP purchased a new position in Arlo Technologies during the 2nd quarter worth $683,000. Continuum Advisory LLC purchased a new position in Arlo Technologies during the 2nd quarter worth $28,000. Finally, B. Metzler seel. Sohn & Co. AG raised its position in Arlo Technologies by 9.2% during the 2nd quarter. B. Metzler seel. Sohn & Co. AG now owns 98,612 shares of the company's stock valued at $1,329,000 after purchasing an additional 8,349 shares in the last quarter. Institutional investors own 83.18% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source