Arlo Technologies (NYSE:ARLO) Stock Rating Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Arlo Technologies from “strong buy” to “buy,” although the broader analyst consensus remains “Moderate Buy” with a $20.20 target price.
• Arlo’s latest quarterly results exceeded expectations, with $0.28 in adjusted EPS and $155.94 million in revenue, up 20.5% year over year.
• Arlo shares opened at $14.42, while insiders have sold $1.84 million worth of stock over the past 90 days; institutional investors own 83.18% of the company.

Arlo Technologies (NYSE:ARLO - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other research firms have also recently commented on ARLO. William Blair assumed coverage on shares of Arlo Technologies in a research report on Tuesday, July 7th. They set an "outperform" rating for the company. Piper Sandler dropped their price objective on shares of Arlo Technologies from $18.00 to $16.00 and set an "overweight" rating on the stock in a research report on Tuesday, October 20th. Finally, Weiss Ratings cut shares of Arlo Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, August 3rd. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $20.20.

Arlo Technologies Stock Down 2.2%

NYSE:ARLO opened at $14.42 on Friday. Arlo Technologies has a 12-month low of $11.05 and a 12-month high of $19.37. The firm has a market capitalization of $1.57 billion, a price-to-earnings ratio of 70.24 and a beta of 1.60. The stock's 50 day moving average price is $12.96 and its two-hundred day moving average price is $13.38.

Arlo Technologies (NYSE:ARLO - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.28 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $148.94 million. During the same period in the previous year, the company posted $0.17 EPS. The firm'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. Equities research analysts expect that Arlo Technologies will post 0.12 EPS for the current year.

Insider Activity at Arlo Technologies

In other news, CFO Kurtis Binder sold 83,211 shares of the stock in a transaction that occurred on Monday, September 28th. The stock was 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 in the company, valued at approximately $4,464,703.56. This trade represents a 18.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 a total of 137,837 shares of company stock valued at $1,836,543 over the last 90 days. 2.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Arlo Technologies

Institutional investors have recently added to or reduced their stakes in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Arlo Technologies by 0.5% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 175,788 shares of the company's stock worth $2,370,000 after purchasing an additional 794 shares during the period. Smith Group Asset Management LLC boosted its stake in shares of Arlo Technologies by 1.6% in the 3rd quarter. Smith Group Asset Management LLC now owns 54,810 shares of the company's stock valued at $680,000 after purchasing an additional 866 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Arlo Technologies by 15.7% during the third quarter. GAMMA Investing LLC now owns 6,647 shares of the company's stock worth $82,000 after buying an additional 904 shares during the period. Covestor Ltd increased its position in shares of Arlo Technologies by 44.2% during the third quarter. Covestor Ltd now owns 3,029 shares of the company's stock worth $38,000 after buying an additional 929 shares during the period. Finally, Choreo LLC raised its stake in Arlo Technologies by 7.4% during the third quarter. Choreo LLC now owns 13,695 shares of the company's stock worth $170,000 after buying an additional 943 shares during the last quarter. 83.18% of the stock is currently owned by institutional investors.

About Arlo Technologies

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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