Arlo Technologies (NYSE:ARLO) Stock Rating Reaffirmed as "Overweight" by Piper Sandler

Key Points

• Piper Sandler reaffirmed its Overweight rating on Arlo Technologies and raised its price target from $16 to $17, implying about 25.8% upside from the prior close.
• Arlo beat third-quarter estimates, reporting adjusted EPS of $0.24 versus $0.20 expected and revenue of $149.18 million versus $144.93 million; revenue rose 6.9% year over year.
• Despite the earnings beat, shares were reported down 8.9%, with fourth-quarter revenue guidance of $137 million–$147 million below Q3 revenue. Analysts’ consensus rating is Moderate Buy, with an average target of $20.40.

Arlo Technologies (NYSE:ARLO - Get Free Report)'s stock had its "overweight" rating reissued by stock analysts at Piper Sandler in a research report issued to clients and investors on Friday, Benzinga reports. They currently have a $17.00 target price on the stock, up from their previous target price of $16.00. Piper Sandler's target price points to a potential upside of 25.76% from the company's previous close.

Several other equities research analysts also recently weighed in on the stock. Wall Street Zen downgraded shares of Arlo Technologies from a "strong-buy" rating to a "buy" rating in a research note on Saturday, October 31st. Weiss Ratings reissued a "hold (c-)" rating on shares of Arlo Technologies in a research report on Friday, October 30th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $20.40.

Arlo Technologies Trading Down 8.9%

Shares of NYSE ARLO opened at $13.52 on Friday. Arlo Technologies has a twelve month low of $11.05 and a twelve month high of $16.89. The stock has a fifty day simple moving average of $13.07 and a 200-day simple moving average of $13.39. The stock has a market capitalization of $1.47 billion, a PE ratio of 49.50 and a beta of 1.59.

Arlo Technologies (NYSE:ARLO - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.04. Arlo Technologies had a return on equity of 17.29% and a net margin of 5.20%. The firm had revenue of $149.18 million for the quarter, compared to the consensus estimate of $144.93 million. During the same quarter in the previous year, the business earned $0.16 EPS. The company's quarterly revenue was up 6.9% compared to the same quarter last year. On average, equities analysts predict that Arlo Technologies will post 0.12 earnings per share for the current year.

Insider Activity

In other news, CFO Kurtis Binder sold 83,211 shares of the business's stock in a transaction dated 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 completion of the transaction, the chief financial officer directly owned 358,899 shares of the company's stock, valued at approximately $4,464,703.56. The trade was a 18.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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. In the last three months, insiders sold 129,963 shares of company stock valued at $1,705,100. Company insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Arlo Technologies during the 2nd quarter worth $235,992,000. Wasatch Advisors LP lifted its position in Arlo Technologies by 9.0% in the second quarter. Wasatch Advisors LP now owns 5,915,935 shares of the company's stock valued at $79,747,000 after acquiring an additional 489,668 shares during the last quarter. Rice Hall James & Associates LLC boosted its stake in Arlo Technologies by 2.3% in the first quarter. Rice Hall James & Associates LLC now owns 3,659,888 shares of the company's stock valued at $52,080,000 after acquiring an additional 83,276 shares in the last quarter. Jupiter Topco LLC acquired a new position in Arlo Technologies in the second quarter valued at $34,557,000. Finally, Primecap Management Co. CA acquired a new position in Arlo Technologies in the second quarter valued at $26,183,000. Institutional investors and hedge funds own 83.18% of the company's stock.

More Arlo Technologies News

Here are the key news stories impacting Arlo Technologies this week:

• Positive Sentiment: Q3 adjusted EPS was $0.24, ahead of the $0.20 consensus and up from $0.16 a year earlier. Revenue of $149.18 million beat the $144.93 million estimate and rose 6.9% year over year. Arlo Reports Third Quarter 2026 Results
• Positive Sentiment: Management highlighted 20% growth in subscriptions and services revenue and adjusted EBITDA growth of more than 50%, supporting the case for improving recurring revenue and profitability. Arlo Reports Third Quarter 2026 Results
• Neutral Sentiment: CFO Kurtis Binder sold 33,394 shares for about $502,000 under a pre-arranged Rule 10b5-1 plan. He retained 312,147 shares, which may lessen concern that the sale signals a changed outlook. SEC filing
• Negative Sentiment: Q4 guidance calls for revenue of $137 million–$147 million, below Q3’s $149.18 million, and adjusted EPS of $0.17–$0.23. This outlook may be weighing on the shares despite the Q3 beat; coverage also described the stock as dropping after the results. Q4 revenue outlook

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.

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.