Arlo Technologies (NYSE:ARLO) Sets New 52-Week High Following Earnings Beat

Key Points

• Arlo Technologies reached a new 52-week high of $19.25, following the announcement of strong quarterly earnings that exceeded analysts' expectations.
• The company reported $0.17 earnings per share, beating the consensus estimate of $0.15, and a revenue of $129.41 million, surpassing expectations of $123.33 million.
• Insider selling has been notable, with CFO Kurtis Binder selling over 92,000 shares and CEO Matthew Mcrae selling over 25,000 shares, indicating a decrease in internal ownership.

Shares of Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report) hit a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $19.25 and last traded at $18.64, with a volume of 895153 shares traded. The stock had previously closed at $16.43.

The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.15 by $0.02. Arlo Technologies had a negative return on equity of 6.69% and a negative net margin of 1.38%. The firm had revenue of $129.41 million for the quarter, compared to analyst estimates of $123.33 million. During the same period last year, the company earned $0.10 earnings per share. Arlo Technologies's revenue for the quarter was up 1.6% compared to the same quarter last year.

Analyst Upgrades and Downgrades

ARLO has been the topic of several research analyst reports. Raymond James Financial reiterated an "outperform" rating and issued a $22.00 price objective (up from $15.00) on shares of Arlo Technologies in a report on Friday. Craig Hallum raised their target price on Arlo Technologies from $17.00 to $22.00 and gave the stock a "buy" rating in a research note on Friday. Finally, BWS Financial restated a "buy" rating and issued a $24.00 price objective on shares of Arlo Technologies in a report on Monday, June 9th.

Insider Activity

In related news, CFO Kurtis Joseph Binder sold 92,247 shares of Arlo Technologies stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $17.17, for a total value of $1,583,880.99. Following the completion of the transaction, the chief financial officer owned 923,527 shares in the company, valued at approximately $15,856,958.59. The trade was a 9.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Matthew Blake Mcrae sold 372,488 shares of Arlo Technologies stock in a transaction on Friday, June 20th. The stock was sold at an average price of $17.14, for a total transaction of $6,384,444.32. Following the sale, the chief executive officer directly owned 2,290,493 shares of the company's stock, valued at approximately $39,259,050.02. This trade represents a 13.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,340,873 shares of company stock worth $22,728,975. 3.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Rockefeller Capital Management L.P. boosted its position in Arlo Technologies by 28.1% during the second quarter. Rockefeller Capital Management L.P. now owns 49,449 shares of the company's stock worth $839,000 after acquiring an additional 10,836 shares during the last quarter. Cetera Investment Advisers acquired a new position in shares of Arlo Technologies in the 2nd quarter valued at about $238,000. Creative Planning acquired a new stake in shares of Arlo Technologies in the second quarter worth $263,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its position in Arlo Technologies by 10.6% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 26,547 shares of the company's stock valued at $450,000 after purchasing an additional 2,535 shares during the period. Finally, Geode Capital Management LLC lifted its position in Arlo Technologies by 2.7% during the 2nd quarter. Geode Capital Management LLC now owns 2,347,314 shares of the company's stock worth $39,815,000 after acquiring an additional 60,838 shares in the last quarter. 83.18% of the stock is owned by hedge funds and other institutional investors.

Arlo Technologies Trading Up 2.4%

The stock's fifty day moving average is $16.52 and its two-hundred day moving average is $13.01.

About Arlo Technologies

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.