Arlo Technologies (NYSE:ARLO) Stock Price Expected to Rise, Lake Street Capital Analyst Says

Key Points

• Lake Street Capital raised its price target on Arlo Technologies to $26 from $25 and maintained a Buy rating, implying 110.07% upside from the previous close.
• Analyst sentiment is broadly positive: six analysts rate the stock Buy and two Hold, for a consensus Moderate Buy rating and average target of $21.33.
• Arlo beat quarterly estimates, reporting $0.24 earnings per share versus $0.20 expected and revenue of $149.18 million versus $144.93 million; revenue increased 6.9% year over year.

Arlo Technologies (NYSE:ARLO - Get Free Report) had its target price boosted by stock analysts at Lake Street Capital from $25.00 to $26.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Lake Street Capital's target price suggests a potential upside of 110.07% from the company's previous close.

A number of other equities research analysts have also recently weighed in on the company. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Arlo Technologies in a report on Friday, October 30th. Piper Sandler reissued an "overweight" rating and issued a $17.00 price objective (up from $16.00) on shares of Arlo Technologies in a report on Friday. Finally, Wall Street Zen cut Arlo Technologies from a "strong-buy" rating to a "buy" rating in a research report on Saturday, October 31st. Six equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Arlo Technologies has a consensus rating of "Moderate Buy" and an average target price of $21.33.

Arlo Technologies Stock Performance

Arlo Technologies stock opened at $12.38 on Friday. The company has a 50-day simple moving average of $13.05 and a 200-day simple moving average of $13.39. The firm has a market capitalization of $1.34 billion, a P/E ratio of 56.26 and a beta of 1.59. Arlo Technologies has a one year low of $11.05 and a one year high of $16.89.

Arlo Technologies (NYSE:ARLO - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.24 earnings per share for the quarter, topping analysts' consensus estimates of $0.20 by $0.04. The business had revenue of $149.18 million for the quarter, compared to analysts' expectations of $144.93 million. Arlo Technologies had a net margin of 4.11% and a return on equity of 16.08%. The company's revenue for the quarter was up 6.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.16 EPS. As a group, sell-side analysts forecast that Arlo Technologies will post 0.12 earnings per share for the current year.

Insider Buying and Selling

In other Arlo Technologies 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 transaction, the chief financial officer owned 358,899 shares of the company's stock, valued at approximately $4,464,703.56. This trade represents a 18.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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. Over the last 90 days, insiders have sold 129,963 shares of company stock worth $1,705,100. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Continuum Advisory LLC acquired a new stake in shares of Arlo Technologies during the 2nd quarter valued at $28,000. Integrated Wealth Concepts LLC bought a new stake in shares of Arlo Technologies during the 2nd quarter worth $29,000. Covestor Ltd grew its holdings in shares of Arlo Technologies by 44.2% in the 3rd quarter. Covestor Ltd now owns 3,029 shares of the company's stock worth $38,000 after acquiring an additional 929 shares during the last quarter. Sterling Capital Management LLC grew its holdings in shares of Arlo Technologies by 848.3% in the 3rd quarter. Sterling Capital Management LLC now owns 3,613 shares of the company's stock worth $45,000 after acquiring an additional 3,232 shares during the last quarter. Finally, Quantbot Technologies LP acquired a new position in shares of Arlo Technologies in the 2nd quarter worth $88,000. 83.18% of the stock is currently owned by institutional investors.

Arlo Technologies Company Profile

Arlo Technologies, Inc is a smart home security company that develops connected devices and cloud-based services designed to help consumers monitor and protect their homes, businesses and other properties. Its product portfolio includes wire-free and wired security cameras, video doorbells, floodlight cameras, home security systems and related accessories.

Arlo's products typically connect through mobile applications and cloud services, providing features such as live video, motion detection, two-way audio, night vision and notifications.

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