Arlo Technologies (NYSE:ARLO) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Arlo Technologies from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $20.60.
• Arlo beat quarterly expectations, reporting $0.28 earnings per share and $155.94 million in revenue, with revenue up 20.5% year over year. Management’s Q3 and full-year 2026 guidance also exceeded consensus forecasts.
• Shares recently traded at $15.21, while CFO Kurtis Joseph Binder sold 27,297 shares under a pre-arranged Rule 10b5-1 plan; insiders have sold 57,775 shares in the past 90 days.

Arlo Technologies (NYSE:ARLO - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Saturday.

Several other equities research analysts have also recently commented on the company. Weiss Ratings cut Arlo Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday. William Blair started coverage on shares of Arlo Technologies in a research note on Tuesday, July 7th. They set an "outperform" rating for the company. Piper Sandler lifted their price objective on shares of Arlo Technologies from $17.00 to $18.00 and gave the company an "overweight" rating in a report on Friday. UBS Group set a $20.00 price objective on shares of Arlo Technologies in a report on Monday, May 18th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $19.00 price objective on shares of Arlo Technologies in a research report on Friday, May 8th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $20.60.

Arlo Technologies Trading Down 1.7%

ARLO stock opened at $15.21 on Friday. The stock has a 50-day moving average price of $13.38 and a two-hundred day moving average price of $13.47. Arlo Technologies has a 1 year low of $11.05 and a 1 year high of $19.94. The stock has a market cap of $1.65 billion, a PE ratio of 56.35 and a beta of 1.56.

Arlo Technologies (NYSE:ARLO - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.08. The company had revenue of $155.94 million during the quarter, compared to analysts' expectations of $148.94 million. Arlo Technologies had a return on equity of 17.90% and a net margin of 5.20%.Arlo Technologies's revenue for the quarter was up 20.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.17 earnings per share. 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. On average, analysts forecast that Arlo Technologies will post 0.2 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Arlo Technologies news, CFO Kurtis Joseph Binder sold 27,297 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $15.52, for a total value of $423,649.44. Following the completion of the sale, the chief financial officer owned 442,110 shares in the company, valued at $6,861,547.20. This trade represents a 5.82% decrease in their ownership of the stock. 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. Insiders have sold a total of 57,775 shares of company stock valued at $845,139 in the last ninety days. Company insiders own 2.90% of the company's stock.

Institutional Investors Weigh In On Arlo Technologies

Several hedge funds have recently bought and sold shares of the company. Hantz Financial Services Inc. grew its holdings 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 purchasing an additional 1,748 shares during the period. Quarry LP raised its stake 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 during the period. Strs Ohio bought a new stake in Arlo Technologies in the first quarter valued at approximately $66,000. Quadrant Capital Group LLC acquired a new stake in shares of Arlo Technologies in the third quarter valued at approximately $86,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Arlo Technologies by 1,682.9% in the second quarter. EverSource Wealth Advisors LLC now owns 5,616 shares of the company's stock valued at $95,000 after buying an additional 5,301 shares during the last quarter. 83.18% of the stock is currently owned by institutional investors and hedge funds.

Arlo Technologies News Summary

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

• Positive Sentiment: Arlo beat Q2 expectations. The smart-home security company reported adjusted earnings of $0.28 per share versus the $0.20 consensus estimate. Revenue increased 20.5% year over year to $155.94 million, exceeding analysts’ $148.94 million forecast. Arlo Technologies Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its outlook above Wall Street expectations. Q3 guidance calls for EPS of $0.17-$0.23 and revenue of $140 million-$150 million, compared with consensus estimates of $0.14 and $133.2 million. Full-year 2026 guidance was set at $0.90-$1.00 EPS and $580 million-$600 million in revenue, ahead of consensus forecasts of $0.71 and $565.7 million, respectively. Arlo Q2 2026 Earnings Call Transcript
• Positive Sentiment: Piper Sandler raised its price target. The firm increased its target from $17 to $18 and maintained an “overweight” rating, signaling confidence in Arlo’s growth trajectory following the earnings release. Piper Sandler Raises Arlo Price Target
• Neutral Sentiment: Management’s earnings call and presentation emphasized stronger growth, supported by higher revenue and expanding profitability. However, investors may want additional detail on the durability of subscription growth and the company’s ability to convert demand into recurring revenue. Arlo Q2 2026 Results Presentation
• Negative Sentiment: CFO Kurtis Joseph Binder disclosed additional stock sales. He sold 13,971 shares for approximately $209,705 on August 3 and 27,297 shares for about $423,649 on August 4. Both transactions were conducted under a pre-arranged Rule 10b5-1 plan, which reduces their significance as a discretionary bearish signal, but the sales can still weigh on sentiment. Arlo CFO Stock Sales

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.

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.

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