Arlo Technologies (NYSE:ARLO) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Arlo Technologies has been upgraded to a "strong-buy" rating by analysts at Wall Street Zen, indicating increased confidence in the company's stock performance.
• The company's shares recently experienced a decline of 4.0%, bringing its opening stock price to $16.66, despite recent positive earnings results.
• Insider transactions showed significant sales, with both the CFO and CEO selling a combined total of 230,924 shares recently, suggesting a decrease in their ownership stakes.

Arlo Technologies (NYSE:ARLO - Get Free Report) was upgraded by analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday.

Several other brokerages have also issued reports on ARLO. Raymond James Financial reissued an "outperform" rating and set a $22.00 target price (up from $15.00) on shares of Arlo Technologies in a research note on Friday, August 8th. Zacks Research downgraded shares of Arlo Technologies from a "strong-buy" rating to a "hold" rating in a report on Tuesday. BWS Financial restated a "buy" rating and set a $26.00 price objective (up previously from $24.00) on shares of Arlo Technologies in a report on Monday, August 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Arlo Technologies in a report on Wednesday. Finally, Craig Hallum upped their price objective on shares of Arlo Technologies from $17.00 to $22.00 and gave the stock a "buy" rating in a report on Friday, August 8th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $23.00.

Arlo Technologies Stock Down 4.0%

Shares of NYSE ARLO opened at $16.66 on Friday. The firm has a market cap of $1.74 billion, a PE ratio of -237.97 and a beta of 1.72. Arlo Technologies has a 12-month low of $7.84 and a 12-month high of $19.25. The company's fifty day simple moving average is $17.29 and its 200 day simple moving average is $14.83.

Arlo Technologies (NYSE:ARLO - Get Free Report) last issued 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 analyst estimates of $123.33 million. Arlo Technologies had a negative net margin of 1.38% and a negative return on equity of 6.69%. Arlo Technologies's revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.10 earnings per share. Arlo Technologies has set its Q3 2025 guidance at 0.120-0.180 EPS. On average, equities analysts predict that Arlo Technologies will post -0.29 earnings per share for the current year.

Insider Activity

In other news, CFO Kurtis Joseph Binder sold 135,494 shares of the stock in a transaction dated 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 sale, the chief financial officer owned 467,681 shares in the company, valued at $7,899,132.09. This represents a 22.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Matthew Blake Mcrae sold 95,430 shares of the stock in a transaction dated Thursday, October 2nd. The shares were sold at an average price of $16.99, for a total transaction of $1,621,355.70. Following the completion of the sale, the chief executive officer owned 1,747,591 shares of the company's stock, valued at approximately $29,691,571.09. This represents a 5.18% 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 worth $22,809,236 over the last quarter. Insiders own 5.20% of the company's stock.

Institutional Trading of Arlo Technologies

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in Arlo Technologies by 1.3% during the first quarter. Vanguard Group Inc. now owns 9,953,767 shares of the company's stock worth $98,244,000 after buying an additional 132,350 shares during the last quarter. Wasatch Advisors LP increased its holdings in Arlo Technologies by 30.1% during 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 last quarter. State Street Corp increased its holdings in Arlo Technologies by 5.3% during the second quarter. State Street Corp now owns 4,272,925 shares of the company's stock worth $72,469,000 after buying an additional 215,867 shares during the last quarter. Geode Capital Management LLC increased its holdings 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 worth $39,815,000 after buying an additional 60,838 shares during the last quarter. Finally, Emerald Advisers LLC increased its holdings in Arlo Technologies by 4.2% during the second quarter. Emerald Advisers LLC now owns 1,749,984 shares of the company's stock worth $29,680,000 after buying an additional 70,195 shares during the last quarter. Hedge funds and other institutional investors 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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