Arlo Technologies (NYSE:ARLO) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research has downgraded Arlo Technologies from a "strong-buy" rating to a "hold" rating.
• Analysts have mixed opinions on the stock, with three ratings as "Buy," one as "Hold," and one as "Sell," leading to an average price target of $23.00.
• Despite the downgrade, Arlo Technologies reported a quarterly earnings per share (EPS) of $0.17, exceeding expectations and showing a slight revenue increase compared to the previous year.

Arlo Technologies (NYSE:ARLO - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

A number of other analysts have also weighed in on the stock. BWS Financial reaffirmed a "buy" rating and issued a $26.00 price target (up from $24.00) on shares of Arlo Technologies in a research note on Monday, August 11th. Craig Hallum upped their target price on Arlo Technologies from $17.00 to $22.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Wall Street Zen lowered Arlo Technologies from a "strong-buy" rating to a "buy" rating in a research note on Friday, October 3rd. Raymond James Financial reissued an "outperform" rating and issued a $22.00 price objective (up previously from $15.00) on shares of Arlo Technologies in a research note on Friday, August 8th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Arlo Technologies in a report on Wednesday. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $23.00.

Arlo Technologies Price Performance

Shares of Arlo Technologies stock opened at $17.26 on Tuesday. Arlo Technologies has a 1-year low of $7.84 and a 1-year high of $19.25. The business's fifty day moving average price is $17.25 and its two-hundred day moving average price is $14.74. The company has a market capitalization of $1.80 billion, a P/E ratio of -246.54 and a beta of 1.72.

Arlo Technologies (NYSE:ARLO - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.17 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.02. The company had revenue of $129.41 million for the quarter, compared to analyst estimates of $123.33 million. Arlo Technologies had a negative return on equity of 6.69% and a negative net margin of 1.38%.The company's quarterly revenue was up 1.6% compared to the same quarter last year. During the same period last year, the company earned $0.10 earnings per share. Arlo Technologies has set its Q3 2025 guidance at 0.120-0.180 EPS. On average, research analysts expect that Arlo Technologies will post -0.29 earnings per share for the current fiscal year.

Insider Transactions at Arlo Technologies

In related news, CEO Matthew Blake Mcrae sold 95,430 shares of Arlo Technologies stock in a transaction on Thursday, October 2nd. The stock was sold at an average price of $16.99, for a total value of $1,621,355.70. Following the transaction, the chief executive officer directly owned 1,747,591 shares in the company, valued at $29,691,571.09. The trade was a 5.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kurtis Joseph Binder sold 135,494 shares of the stock in a transaction on Tuesday, September 30th. The shares were sold at an average price of $16.89, for a total value of $2,288,493.66. Following the completion of the transaction, the chief financial officer owned 467,681 shares of the company's stock, valued at $7,899,132.09. This trade represents a 22.46% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,313,009 shares of company stock valued at $22,809,236 in the last three months. 5.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Arlo Technologies

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Arlo Technologies by 1.3% during the 1st quarter. Vanguard Group Inc. now owns 9,953,767 shares of the company's stock worth $98,244,000 after purchasing an additional 132,350 shares in the last quarter. Wasatch Advisors LP boosted its position in shares of Arlo Technologies by 30.1% in the second quarter. Wasatch Advisors LP now owns 4,678,880 shares of the company's stock worth $79,354,000 after buying an additional 1,082,443 shares during the period. State Street Corp grew its holdings in shares of Arlo Technologies by 5.3% during the second quarter. State Street Corp now owns 4,272,925 shares of the company's stock valued at $72,469,000 after buying an additional 215,867 shares in the last quarter. Geode Capital Management LLC raised its position in Arlo Technologies by 2.7% during the second quarter. Geode Capital Management LLC now owns 2,347,314 shares of the company's stock valued at $39,815,000 after buying an additional 60,838 shares during the period. Finally, Emerald Advisers LLC lifted its stake in Arlo Technologies by 4.2% in the 2nd quarter. Emerald Advisers LLC now owns 1,749,984 shares of the company's stock worth $29,680,000 after acquiring an additional 70,195 shares in the last quarter. Institutional investors and hedge funds own 83.18% of the company's stock.

Arlo Technologies Company Profile

Arlo Technologies, Inc, together with its subsidiaries, provides a cloud-based platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers Arlo Essential Cameras and Doorbells (2nd Generation) delivers smart home protection, including automated privacy shield, 180-degree field of view, and 2K video resolution; Arlo Home Security System, an all-in-one multi-sensor that provides access to security experts for monitoring and responding to emergency situations; Arlo Pro 5S, a wireless 2K video resolution security camera; Arlo Go 2, a camera for monitoring remote areas, large properties, construction sites, vacation homes, boat or RV slips, and hard-to-access areas; Arlo Ultra 2 provides 4K video with HDR, an ultra-wide, 180-degree field of view, auto zoom and tracking on moving objects, and color night vision; and Arlo Floodlight Camera, a wire-free floodlight camera.

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