Arlo Technologies (NYSE:ARLO) Receives Sell (D-) Rating from Weiss Ratings

Key Points

• Arlo Technologies has been given a "sell (D-)" rating by Weiss Ratings, indicating potential concerns about the company's stock performance.
• Despite the negative rating from Weiss, other brokerages have issued more positive ratings, with a consensus of "Moderate Buy" and an average target price of $23.00.
• Insider trading activity saw significant sales from both the CFO and CEO, indicating possible shifts in confidence among top executives; they sold a combined total of 656,051 shares recently.

Arlo Technologies (NYSE:ARLO - Get Free Report)'s stock had its "sell (d-)" rating reissued by equities research analysts at Weiss Ratings in a report issued on Wednesday,Weiss Ratings reports.

Several other brokerages have also issued reports on ARLO. BWS Financial reissued a "buy" rating and set a $26.00 target price (up from $24.00) on shares of Arlo Technologies in a research note on Monday, August 11th. Zacks Research raised shares of Arlo Technologies from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 25th. Raymond James Financial reaffirmed an "outperform" rating and issued a $22.00 price objective (up from $15.00) on shares of Arlo Technologies in a research note on Friday, August 8th. Craig Hallum raised their price objective on shares of Arlo Technologies from $17.00 to $22.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Finally, Wall Street Zen lowered shares of Arlo Technologies from a "strong-buy" rating to a "buy" rating in a research note on Friday, October 3rd. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, Arlo Technologies has a consensus rating of "Moderate Buy" and an average target price of $23.00.

Arlo Technologies Stock Performance

Shares of NYSE:ARLO traded up $0.37 during trading on Wednesday, reaching $17.26. The stock had a trading volume of 603,465 shares, compared to its average volume of 1,126,953. The firm's fifty day moving average is $17.23 and its 200 day moving average is $14.73. Arlo Technologies has a 52 week low of $7.84 and a 52 week high of $19.25. The stock has a market cap of $1.80 billion, a price-to-earnings ratio of -246.54 and a beta of 1.72.

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

Insiders Place Their Bets

In other Arlo Technologies 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 transaction of $2,288,493.66. Following the completion of the transaction, the chief financial officer owned 467,681 shares in the company, valued at $7,899,132.09. This trade represents a 22.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Matthew Blake Mcrae sold 520,557 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $17.40, for a total transaction of $9,057,691.80. Following the completion of the transaction, the chief executive officer owned 1,621,835 shares of the company's stock, valued at $28,219,929. This trade represents a 24.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,313,009 shares of company stock worth $22,809,236 over the last quarter. 3.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. First Horizon Advisors Inc. increased its position in Arlo Technologies by 161.4% during the 2nd quarter. First Horizon Advisors Inc. now owns 3,220 shares of the company's stock valued at $55,000 after purchasing an additional 1,988 shares during the period. Strs Ohio purchased a new position in Arlo Technologies during the 1st quarter valued at $66,000. GAMMA Investing LLC boosted its holdings in shares of Arlo Technologies by 40.9% during the 1st quarter. GAMMA Investing LLC now owns 7,212 shares of the company's stock valued at $71,000 after buying an additional 2,095 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Arlo Technologies by 1,682.9% during the 2nd 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 in the last quarter. Finally, Magnetar Financial LLC bought a new stake in shares of Arlo Technologies during the 1st quarter valued at $117,000. 83.18% of the stock is owned by hedge funds and other institutional investors.

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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