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

Key Points

• Analysts give Arlo a consensus recommendation of “Moderate Buy” (3 buys, 2 holds) with an average 1‑year price target of $23.33.
• Arlo beat quarterly estimates, reporting $0.22 EPS versus $0.16 expected and revenue of $141.3M (up 16.2% year‑over‑year).
• Insiders have been net sellers—703,549 shares (~$9.43M) sold in the last 90 days including sales by the CEO and CFO—while the board approved a $50M repurchase plan to buy back up to ~3.1% of shares.

Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report) has received an average recommendation of "Moderate Buy" from the five research firms that are covering the company, Marketbeat.com reports. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $23.3333.

ARLO has been the topic of several recent research reports. Weiss Ratings raised shares of Arlo Technologies from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, March 6th. Zacks Research cut Arlo Technologies from a "strong-buy" rating to a "hold" rating in a report on Tuesday, January 6th.

Insider Activity at Arlo Technologies

In related news, CFO Kurtis Joseph Binder sold 25,000 shares of the stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $13.99, for a total transaction of $349,750.00. Following the completion of the sale, the chief financial officer directly owned 589,885 shares in the company, valued at $8,252,491.15. This represents a 4.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Blake Mcrae sold 153,433 shares of the stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $13.78, for a total value of $2,114,306.74. Following the sale, the chief executive officer owned 1,168,866 shares of the company's stock, valued at $16,106,973.48. This represents a 11.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 703,549 shares of company stock worth $9,426,780 in the last ninety days. 3.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Arlo Technologies

Several institutional investors have recently bought and sold shares of the stock. Arizona State Retirement System boosted its holdings in Arlo Technologies by 2.3% during the 3rd quarter. Arizona State Retirement System now owns 30,597 shares of the company's stock valued at $519,000 after acquiring an additional 702 shares during the period. Smartleaf Asset Management LLC lifted its holdings in Arlo Technologies by 86.0% in the 3rd quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company's stock worth $28,000 after buying an additional 747 shares during the period. Quarry LP lifted its holdings in Arlo Technologies by 42.0% in the 3rd quarter. Quarry LP now owns 2,649 shares of the company's stock worth $45,000 after buying an additional 783 shares during the period. Oregon Public Employees Retirement Fund lifted its holdings in Arlo Technologies by 3.4% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 24,268 shares of the company's stock worth $340,000 after buying an additional 800 shares during the period. Finally, Farther Finance Advisors LLC lifted its holdings in Arlo Technologies by 12.5% in the 4th quarter. Farther Finance Advisors LLC now owns 7,631 shares of the company's stock worth $107,000 after buying an additional 849 shares during the period. 83.18% of the stock is currently owned by hedge funds and other institutional investors.

Arlo Technologies Trading Down 1.5%

Shares of Arlo Technologies stock opened at $14.96 on Tuesday. The firm has a market capitalization of $1.60 billion, a PE ratio of 115.09 and a beta of 1.71. The business's 50-day moving average price is $13.57 and its 200-day moving average price is $14.46. Arlo Technologies has a 12 month low of $8.78 and a 12 month high of $19.94.

Arlo Technologies (NYSE:ARLO - Get Free Report) last announced its quarterly earnings data on Friday, February 27th. The company reported $0.22 EPS for the quarter, beating the consensus estimate of $0.16 by $0.06. Arlo Technologies had a return on equity of 10.76% and a net margin of 2.82%.The firm had revenue of $141.30 million for the quarter, compared to analyst estimates of $135.57 million. During the same period in the prior year, the company earned $0.10 EPS. The company's revenue was up 16.2% on a year-over-year basis. As a group, analysts predict that Arlo Technologies will post 0.16 earnings per share for the current fiscal year.

Arlo Technologies announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, March 4th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the company to purchase up to 3.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

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.

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