Arlo Technologies (NYSE:ARLO) Shares Down 5.3% After Insider Selling

Key Points

• Arlo Technologies' stock fell 5.3% following a significant share sale by CEO Matthew Blake Mcrae and CFO Kurtis Joseph Binder, which decreased their ownership in the company.
• Despite the drop in stock price, analysts have given positive ratings, with Craig Hallum raising the price target from $17.00 to $22.00 and BWS Financial increasing theirs to $26.00.
• In recent earnings, Arlo reported a profit of $0.17 per share, exceeding expectations, with revenue rising to $129.41 million, a 1.6% increase year-over-year.

Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report)'s stock price fell 5.3% on Wednesday following insider selling activity. The stock traded as low as $16.72 and last traded at $17.18. 1,827,676 shares were traded during mid-day trading, an increase of 71% from the average session volume of 1,070,470 shares. The stock had previously closed at $18.14.

Specifically, CEO Matthew Blake Mcrae sold 520,557 shares of Arlo Technologies 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 sale, the chief executive officer directly 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Matthew Blake Mcrae sold 331,625 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $17.38, for a total transaction of $5,763,642.50. Following the sale, the chief executive officer directly owned 2,142,392 shares in the company, valued at $37,234,772.96. The trade was a 13.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other Arlo Technologies news, CFO Kurtis Joseph Binder sold 113,912 shares of the company's 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 completion of the transaction, the chief financial officer directly owned 809,615 shares in the company, valued at approximately $15,026,454.40. This represents a 12.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.

Wall Street Analysts Forecast Growth

ARLO has been the subject of a number of recent analyst reports. Craig Hallum increased their target price on shares of Arlo Technologies from $17.00 to $22.00 and gave the company a "buy" rating in a research report on Friday, August 8th. Raymond James Financial reiterated an "outperform" rating and set a $22.00 price objective (up from $15.00) on shares of Arlo Technologies in a research report on Friday, August 8th. Finally, BWS Financial restated a "buy" rating and issued a $26.00 target price (up previously from $24.00) on shares of Arlo Technologies in a report on Monday, August 11th.

Arlo Technologies Trading Up 3.9%

The company's 50-day simple moving average is $16.69 and its 200 day simple moving average is $13.23. The stock has a market cap of $1.79 billion, a P/E ratio of -244.47 and a beta of 1.85.

Arlo Technologies (NYSE:ARLO - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.15 by $0.02. The company had revenue of $129.41 million during 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%. The firm's revenue for the quarter was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.10 earnings per share. Research analysts anticipate that Arlo Technologies, Inc. will post -0.29 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Arlo Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARLO. Vanguard Group Inc. raised its stake in shares of Arlo Technologies by 1.3% during the 1st quarter. Vanguard Group Inc. now owns 9,953,767 shares of the company's stock valued at $98,244,000 after purchasing an additional 132,350 shares during the period. Wasatch Advisors LP grew its holdings in Arlo Technologies by 30.1% during the 2nd quarter. Wasatch Advisors LP now owns 4,678,880 shares of the company's stock valued at $79,354,000 after buying an additional 1,082,443 shares in the last quarter. State Street Corp increased its position in shares of Arlo Technologies by 5.3% during the second quarter. State Street Corp now owns 4,272,925 shares of the company's stock valued at $72,469,000 after buying an additional 215,867 shares during the period. Geode Capital Management LLC increased its position in shares of Arlo Technologies by 2.7% during the second quarter. Geode Capital Management LLC now owns 2,347,314 shares of the company's stock valued at $39,815,000 after buying an additional 60,838 shares during the period. Finally, Emerald Advisers LLC lifted its holdings in shares of Arlo Technologies by 4.2% in 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 in 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.