Arlo Technologies, Inc. (NYSE:ARLO) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Moderate Buy consensus from five analysts (three buys, two holds) with an average 1‑year price target of $23.33.
• Q4 results beat expectations—EPS $0.22 vs. $0.16 and revenue $141.3M vs. $135.6M (revenue +16.2% YoY)—and the company set Q1 2026 EPS guidance of $0.170–$0.230 despite analysts projecting a -$0.29 full‑year EPS.
• Board approved a $50 million share buyback (about 3.1% of shares) while corporate insiders have recently sold large blocks of stock (842,522 shares worth ~$11.3M in the last three months, including the CFO's sale).

Shares of Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report) have been assigned an average rating of "Moderate Buy" from the five ratings firms that are presently covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $23.3333.

A number of brokerages have recently issued reports on ARLO. Zacks Research lowered shares of Arlo Technologies from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, January 6th. Weiss Ratings upgraded shares of Arlo Technologies from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, March 6th.

Arlo Technologies Price Performance

Shares of NYSE ARLO opened at $14.23 on Friday. The stock has a fifty day moving average price of $13.25 and a 200 day moving average price of $14.92. Arlo Technologies has a 1-year low of $7.84 and a 1-year high of $19.94. The company has a market cap of $1.52 billion, a PE ratio of 109.43 and a beta of 1.65.

Arlo Technologies (NYSE:ARLO - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.06. The company had revenue of $141.30 million for the quarter, compared to analysts' expectations of $135.57 million. Arlo Technologies had a net margin of 2.82% and a return on equity of 10.76%. Arlo Technologies's revenue was up 16.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.10 EPS. Arlo Technologies has set its Q1 2026 guidance at 0.170-0.230 EPS. Analysts anticipate that Arlo Technologies will post -0.29 earnings per share for the current fiscal year.

Arlo Technologies declared that its board has initiated a stock buyback program on Wednesday, March 4th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 3.1% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its stock is undervalued.

Insider Transactions at Arlo Technologies

In related news, CFO Kurtis Joseph Binder sold 179,419 shares of the company's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $13.78, for a total transaction of $2,472,393.82. Following the transaction, the chief financial officer owned 614,885 shares of the company's stock, valued at $8,473,115.30. This represents a 22.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Brian Busse sold 31,407 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $12.29, for a total value of $385,992.03. Following the completion of the transaction, the general counsel owned 552,850 shares of the company's stock, valued at $6,794,526.50. The trade was a 5.38% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 842,522 shares of company stock valued at $11,321,821. Corporate insiders own 5.20% of the company's stock.

Hedge Funds Weigh In On Arlo Technologies

Institutional investors and hedge funds have recently made changes to their positions in the stock. Smartleaf Asset Management LLC boosted its holdings in Arlo Technologies by 86.0% during the third quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company's stock worth $28,000 after buying an additional 747 shares in the last quarter. Hantz Financial Services Inc. grew its position in Arlo Technologies by 763.3% during the fourth quarter. Hantz Financial Services Inc. now owns 1,977 shares of the company's stock worth $28,000 after buying an additional 1,748 shares during the period. Quarry LP increased its holdings in Arlo Technologies by 42.0% in the third quarter. Quarry LP now owns 2,649 shares of the company's stock valued at $45,000 after buying an additional 783 shares in the last quarter. Quadrant Capital Group LLC purchased a new position in Arlo Technologies in the third quarter valued at about $86,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Arlo Technologies by 1,682.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,616 shares of the company's stock valued at $95,000 after acquiring an additional 5,301 shares during the period. 83.18% of the stock is owned by institutional investors and hedge funds.

About Arlo Technologies

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.

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