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

Key Points

• Arlo Technologies was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating, indicating a shift in analyst sentiment.
• Despite the downgrade, several other analysts have maintained a positive outlook, with price targets increased to $22.00 to $26.00 based on recent reports.
• The company's latest earnings report showed a profit of $0.17 per share, beating estimates and reflecting a year-over-year revenue increase of 1.6%.

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

Other research analysts also recently issued research reports about the company. Craig Hallum raised their price objective on Arlo Technologies from $17.00 to $22.00 and gave the stock a "buy" rating in a research note on Friday, August 8th. Raymond James Financial reaffirmed 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. BWS Financial reaffirmed a "buy" rating and issued a $26.00 price objective (up previously from $24.00) on shares of Arlo Technologies in a research note on Monday, August 11th. Finally, Zacks Research raised Arlo Technologies from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 25th. One analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company's stock. Based on data from MarketBeat, Arlo Technologies presently has a consensus rating of "Buy" and an average target price of $23.00.

Arlo Technologies Stock Performance

Shares of NYSE:ARLO opened at $17.46 on Friday. The stock has a market capitalization of $1.82 billion, a price-to-earnings ratio of -249.42 and a beta of 1.75. The stock's 50-day simple moving average is $16.84 and its two-hundred day simple moving average is $13.99. Arlo Technologies has a 52-week low of $7.84 and a 52-week high of $19.25.

Arlo Technologies (NYSE:ARLO - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.02. The business had revenue of $129.41 million for the quarter, compared to analysts' expectations of $123.33 million. Arlo Technologies had a negative return on equity of 6.69% and a negative net margin of 1.38%.The business's revenue for the quarter was up 1.6% on a year-over-year basis. During the same period last year, the firm posted $0.10 earnings per share. Arlo Technologies has set its Q3 2025 guidance at 0.120-0.180 EPS. As a group, equities analysts forecast that Arlo Technologies will post -0.29 earnings per share for the current fiscal year.

Insider Activity at Arlo Technologies

In related news, CEO Matthew Blake Mcrae sold 520,557 shares of Arlo Technologies stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $17.40, for a total transaction of $9,057,691.80. Following the sale, the chief executive officer owned 1,621,835 shares of the company's stock, valued at approximately $28,219,929. This trade represents a 24.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Kurtis Joseph Binder sold 113,912 shares of Arlo Technologies stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $18.56, for a total value of $2,114,206.72. Following the sale, the chief financial officer directly owned 809,615 shares in the company, valued at $15,026,454.40. This trade represents a 12.33% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,306,967 shares of company stock worth $39,664,516 in the last three months. 5.20% of the stock is owned by corporate insiders.

Institutional Trading of Arlo Technologies

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Amalgamated Bank increased its stake in Arlo Technologies by 2.4% in the 2nd quarter. Amalgamated Bank now owns 29,265 shares of the company's stock worth $496,000 after acquiring an additional 692 shares during the last quarter. Bank of Montreal Can increased its stake in Arlo Technologies by 5.4% in the 2nd quarter. Bank of Montreal Can now owns 15,694 shares of the company's stock worth $266,000 after acquiring an additional 810 shares during the last quarter. Ameritas Investment Partners Inc. increased its stake in Arlo Technologies by 9.0% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 10,155 shares of the company's stock worth $172,000 after acquiring an additional 838 shares during the last quarter. Rhumbline Advisers increased its stake in Arlo Technologies by 0.3% in the 1st quarter. Rhumbline Advisers now owns 270,199 shares of the company's stock worth $2,667,000 after acquiring an additional 861 shares during the last quarter. Finally, Yousif Capital Management LLC increased its stake in Arlo Technologies by 2.5% in the 2nd quarter. Yousif Capital Management LLC now owns 38,479 shares of the company's stock worth $653,000 after acquiring an additional 954 shares during the last quarter. Institutional investors own 83.18% of the company's stock.

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.

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