Arlo Technologies (NYSE:ARLO) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• Arlo Technologies experienced a significant trading volume spike, with approximately 3.46 million shares traded on Tuesday, a 227% increase from the previous session.
• Analyst ratings have improved, with Craig Hallum and Raymond James both raising their price targets to $22.00, and BWS Financial increasing its target to $26.00, reflecting a generally positive outlook on the stock.
• Insider sales have occurred recently, with CEO Matthew Blake Mcrae selling 25,380 shares at $16.56 each, indicating a slight decrease in insider ownership amidst a recent uptick in share price.

Shares of Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report) saw strong trading volume on Tuesday . 3,458,191 shares were traded during mid-day trading, an increase of 227% from the previous session's volume of 1,057,480 shares.The stock last traded at $18.26 and had previously closed at $17.20.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on ARLO shares. Raymond James Financial reissued an "outperform" rating and set a $22.00 price objective (up from $15.00) on shares of Arlo Technologies in a report on Friday, August 8th. Craig Hallum upped their price target on Arlo Technologies from $17.00 to $22.00 and gave the company a "buy" rating in a research report on Friday, August 8th. Finally, BWS Financial reissued a "buy" rating and issued a $26.00 price objective (up previously from $24.00) on shares of Arlo Technologies in a report on Monday, August 11th.

Arlo Technologies Stock Performance

The stock's 50 day moving average is $16.69 and its 200 day moving average is $13.19. The company has a market capitalization of $1.71 billion, a PE ratio of -234.54 and a beta of 1.85.

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, 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 business had revenue of $129.41 million for the quarter, compared to analysts' expectations of $123.33 million. During the same quarter in the previous year, the firm posted $0.10 EPS. The business's revenue for the quarter was up 1.6% compared to the same quarter last year. On average, equities research analysts forecast that Arlo Technologies, Inc. will post -0.29 EPS for the current fiscal year.

Insider Transactions at Arlo Technologies

In other Arlo Technologies news, CFO Kurtis Joseph Binder sold 113,912 shares of Arlo Technologies stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $18.56, for a total transaction of $2,114,206.72. Following the completion of the transaction, the chief financial officer owned 809,615 shares of the company's stock, valued at $15,026,454.40. The trade was a 12.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Matthew Blake Mcrae sold 520,557 shares of the stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 1,621,835 shares in the company, valued at approximately $28,219,929. The trade was a 24.30% decrease in their ownership of the stock. 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. 3.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Amalgamated Bank raised its position in shares of Arlo Technologies by 2.4% in the second quarter. Amalgamated Bank now owns 29,265 shares of the company's stock worth $496,000 after buying an additional 692 shares in the last quarter. Bank of Montreal Can raised its holdings in shares of Arlo Technologies by 5.4% in the 2nd quarter. Bank of Montreal Can now owns 15,694 shares of the company's stock valued at $266,000 after acquiring an additional 810 shares in the last quarter. Ameritas Investment Partners Inc. boosted its position in shares of Arlo Technologies by 9.0% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 10,155 shares of the company's stock valued at $172,000 after acquiring an additional 838 shares during the last quarter. Rhumbline Advisers boosted its position in shares of Arlo Technologies by 0.3% during the 1st quarter. Rhumbline Advisers now owns 270,199 shares of the company's stock valued at $2,667,000 after acquiring an additional 861 shares during the last quarter. Finally, Yousif Capital Management LLC grew its holdings in shares of Arlo Technologies by 2.5% during the second quarter. Yousif Capital Management LLC now owns 38,479 shares of the company's stock worth $653,000 after purchasing an additional 954 shares in the last quarter. 83.18% of the stock is owned by 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.