Arlo Technologies (NYSE:ARLO) Trading Down 5.3% on 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.

Shares of Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report) dropped 5.3% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $16.72 and last traded at $17.18. Approximately 1,827,676 shares were traded during trading, an increase of 71% from the average daily volume of 1,070,470 shares. The stock had previously closed at $18.14.

Specifically, CEO Matthew Blake Mcrae sold 331,625 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $17.38, for a total transaction of $5,763,642.50. Following the sale, the chief executive officer owned 2,142,392 shares of the company's stock, valued at $37,234,772.96. The trade was a 13.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kurtis Joseph Binder sold 113,912 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $18.56, for a total transaction of $2,114,206.72. Following the sale, the chief financial officer directly owned 809,615 shares in the company, valued at $15,026,454.40. The trade was a 12.33% decrease in their position. The disclosure for this sale can be found here.

Analyst Ratings Changes

ARLO has been the topic of several research analyst reports. Craig Hallum upped their price target 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. BWS Financial reaffirmed a "buy" rating and issued a $26.00 price target (up previously from $24.00) on shares of Arlo Technologies in a report on Monday. Finally, 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 research note on Friday, August 8th.

Arlo Technologies Stock Down 4.5%

The company's fifty day moving average price is $16.64 and its 200-day moving average price is $13.08. The stock has a market capitalization of $1.81 billion, a PE ratio of -247.38 and a beta of 1.85.

Arlo Technologies (NYSE:ARLO - Get Free Report) last announced 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 the consensus estimate 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 quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.10 earnings per share. Equities research analysts anticipate that Arlo Technologies, Inc. will post -0.29 earnings per share for the current year.

Institutional Investors Weigh In On Arlo Technologies

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Arlo Technologies by 1.3% in the 1st quarter. Vanguard Group Inc. now owns 9,953,767 shares of the company's stock worth $98,244,000 after purchasing an additional 132,350 shares during the period. Wasatch Advisors LP grew its position in shares of Arlo Technologies by 21.1% during the 4th quarter. Wasatch Advisors LP now owns 4,537,333 shares of the company's stock valued at $50,773,000 after acquiring an additional 790,549 shares during the period. Geode Capital Management LLC grew its position in shares of Arlo Technologies by 2.7% during the 2nd quarter. Geode Capital Management LLC now owns 2,347,314 shares of the company's stock valued at $39,815,000 after acquiring an additional 60,838 shares during the period. Emerald Advisers LLC grew its position in shares of Arlo Technologies by 4.2% during the 2nd quarter. Emerald Advisers LLC now owns 1,749,984 shares of the company's stock valued at $29,680,000 after acquiring an additional 70,195 shares during the period. Finally, Northern Trust Corp grew its position in shares of Arlo Technologies by 11.7% during the 4th quarter. Northern Trust Corp now owns 1,711,116 shares of the company's stock valued at $19,147,000 after acquiring an additional 179,288 shares during the period. 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.

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