Arlo Technologies (NYSE:ARLO) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Arlo Technologies has been upgraded to a "strong-buy" rating by Wall Street Zen, increasing investor confidence in the company.
• Other analysts have also raised their ratings and target prices for Arlo, with a consensus price target now set at $23.00.
• Arlo reported strong earnings with $0.17 EPS for the quarter, exceeding the estimated $0.15 EPS and showing a year-over-year revenue increase of 1.6%.

Wall Street Zen upgraded shares of Arlo Technologies (NYSE:ARLO - Free Report) from a buy rating to a strong-buy rating in a research note published on Sunday.

Several other equities research analysts have also weighed in on the company. Craig Hallum increased their target price on Arlo Technologies from $17.00 to $22.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. BWS Financial reissued a "buy" rating and issued a $26.00 price target (up previously from $24.00) on shares of Arlo Technologies in a research note on Monday, August 11th. Zacks Research raised Arlo Technologies from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 25th. Finally, Raymond James Financial reiterated an "outperform" rating and set a $22.00 price target (up from $15.00) on shares of Arlo Technologies in a report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $23.00.

Arlo Technologies Stock Down 1.6%

Shares of Arlo Technologies stock traded down $0.30 on Friday, hitting $18.24. 271,010 shares of the company's stock traded hands, compared to its average volume of 1,123,820. The stock has a market cap of $1.90 billion, a P/E ratio of -260.61 and a beta of 1.75. The firm's 50-day moving average is $17.05 and its 200 day moving average is $14.26. Arlo Technologies has a 52-week low of $7.84 and a 52-week high of $19.25.

Arlo Technologies (NYSE:ARLO - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.17 EPS 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 analysts' expectations of $123.33 million. Arlo Technologies had a negative return on equity of 6.69% and a negative net margin of 1.38%.The business's revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.10 EPS. Arlo Technologies has set its Q3 2025 guidance at 0.120-0.180 EPS. Equities research analysts forecast that Arlo Technologies will post -0.29 EPS for the current year.

Insider Activity

In related news, 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 transaction, the chief executive officer directly owned 1,621,835 shares in the company, valued at approximately $28,219,929. This trade represents a 24.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Kurtis Joseph Binder sold 113,912 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $18.56, for a total value of $2,114,206.72. Following the transaction, the chief financial officer owned 809,615 shares of the company's stock, valued at approximately $15,026,454.40. The trade was a 12.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,440,345 shares of company stock valued at $24,995,624 over the last 90 days. Corporate insiders own 3.80% of the company's stock.

Institutional Trading of Arlo Technologies

A number of hedge funds have recently made changes to their positions in ARLO. First Horizon Advisors Inc. lifted its position in shares of Arlo Technologies by 161.4% in the second quarter. First Horizon Advisors Inc. now owns 3,220 shares of the company's stock valued at $55,000 after buying an additional 1,988 shares during the last quarter. Strs Ohio acquired a new stake in shares of Arlo Technologies in the first quarter valued at approximately $66,000. GAMMA Investing LLC lifted its position in shares of Arlo Technologies by 40.9% in the first 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 during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Arlo Technologies by 1,682.9% in the second 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 during the last quarter. Finally, Magnetar Financial LLC acquired a new stake in shares of Arlo Technologies in the first quarter valued at approximately $117,000. 83.18% of the stock is owned by institutional investors and hedge funds.

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.