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

Key Points

• Arlo Technologies has been downgraded by Wall Street Zen from a "strong-buy" to a "buy" rating, reflecting a shift in analyst sentiment.
• The stock currently has an average target price of $23.00 and an average rating of "Moderate Buy," with various analysts issuing differing recommendations.
• In recent trading, Arlo Technologies shares increased by 1.1%, reaching $17.28, while institutional investors have significantly increased their holdings in the company.

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

A number of other equities analysts have also weighed in on the stock. BWS Financial reiterated a "buy" rating and issued a $26.00 price objective (up from $24.00) on shares of Arlo Technologies in a research report on Monday, August 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Arlo Technologies in a report on Saturday, September 27th. Raymond James Financial reissued an "outperform" rating and issued a $22.00 target price (up previously from $15.00) on shares of Arlo Technologies in a report on Friday, August 8th. Craig Hallum raised their target price on Arlo Technologies from $17.00 to $22.00 and gave the company a "buy" rating in a report on Friday, August 8th. Finally, Zacks Research raised Arlo Technologies from a "hold" rating to a "strong-buy" rating in a report on Monday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $23.00.

Arlo Technologies Stock Up 1.1%

NYSE:ARLO traded up $0.20 during midday trading on Friday, reaching $17.28. The stock had a trading volume of 873,458 shares, compared to its average volume of 1,344,321. The firm has a fifty day simple moving average of $17.20 and a two-hundred day simple moving average of $14.61. Arlo Technologies has a 12-month low of $7.84 and a 12-month high of $19.25. The stock has a market cap of $1.80 billion, a P/E ratio of -246.75 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 earnings per share 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 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 firm posted $0.10 EPS. Arlo Technologies'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, sell-side analysts anticipate that Arlo Technologies will post -0.29 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, General Counsel Brian Busse sold 9,171 shares of the firm's stock in a transaction on Thursday, October 2nd. The stock was sold at an average price of $16.99, for a total value of $155,815.29. Following the completion of the sale, the general counsel owned 669,376 shares of the company's stock, valued at $11,372,698.24. This trade represents a 1.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kurtis Joseph Binder sold 135,494 shares of the firm's stock in a transaction on 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 transaction, the chief financial officer directly owned 467,681 shares of the company's stock, valued at $7,899,132.09. This represents a 22.46% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,313,009 shares of company stock valued at $22,809,236 over the last quarter. 5.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Arlo Technologies

Institutional investors and hedge funds have recently modified their holdings of the stock. First Horizon Advisors Inc. raised its position in Arlo Technologies by 161.4% in the 2nd quarter. First Horizon Advisors Inc. now owns 3,220 shares of the company's stock worth $55,000 after buying an additional 1,988 shares during the last quarter. Strs Ohio purchased a new position in Arlo Technologies in the 1st quarter worth approximately $66,000. GAMMA Investing LLC lifted its holdings in Arlo Technologies by 40.9% in the 1st quarter. GAMMA Investing LLC now owns 7,212 shares of the company's stock worth $71,000 after purchasing an additional 2,095 shares in the last quarter. EverSource Wealth Advisors LLC raised 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 worth $95,000 after acquiring an additional 5,301 shares in the last quarter. Finally, Magnetar Financial LLC purchased a new stake in shares of Arlo Technologies during the 1st quarter worth approximately $117,000. 83.18% of the stock is currently owned by institutional investors.

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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