Arlo Technologies, Inc. (ARLO) - What Are Analysts Thinking About This Stock?

Key Points

• Analyst sentiment is moderately positive: Seven firms rate Arlo Technologies an average “Moderate Buy,” with five buys and two holds. The average 12-month price target is $20.60.
• Arlo reported quarterly EPS of $0.28, beating the $0.20 consensus estimate, while revenue rose 20.5% year over year to $155.94 million. The company issued fiscal 2026 EPS guidance of $0.90–$1.00.
• Institutional investors own 83.18% of the stock, including a new $236 million position from BlackRock, while insiders sold 137,837 shares worth approximately $1.84 million during the last quarter.

Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report) has been given an average rating of "Moderate Buy" by the seven research firms that are presently covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $20.60.

A number of equities analysts have commented on the company. Weiss Ratings downgraded Arlo Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, August 3rd. William Blair started coverage on Arlo Technologies in a research report on Tuesday, July 7th. They set an "outperform" rating on the stock. Piper Sandler raised their price target on Arlo Technologies from $17.00 to $18.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Finally, Wall Street Zen upgraded Arlo Technologies from a "buy" rating to a "strong-buy" rating in a research report on Saturday.

Arlo Technologies Stock Performance

Shares of Arlo Technologies stock opened at $12.11 on Tuesday. The firm has a market cap of $1.31 billion, a PE ratio of 44.83 and a beta of 1.60. The firm's 50-day simple moving average is $13.42 and its 200-day simple moving average is $13.48. Arlo Technologies has a 1 year low of $11.05 and a 1 year high of $19.94.

Arlo Technologies (NYSE:ARLO - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of $0.20 by $0.08. Arlo Technologies had a net margin of 5.20% and a return on equity of 17.29%. The firm had revenue of $155.94 million during the quarter, compared to the consensus estimate of $148.94 million. During the same quarter in the previous year, the company posted $0.17 earnings per share. The firm's revenue was up 20.5% on a year-over-year basis. Arlo Technologies has set its FY 2026 guidance at 0.900-1.000 EPS and its Q3 2026 guidance at 0.170-0.230 EPS. On average, equities analysts predict that Arlo Technologies will post 0.12 earnings per share for the current year.

Insiders Place Their Bets

In other Arlo Technologies news, CFO Kurtis Binder sold 13,358 shares of the stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $12.58, for a total value of $168,043.64. Following the sale, the chief financial officer directly owned 345,541 shares of the company's stock, valued at $4,346,905.78. This trade represents a 3.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 137,837 shares of company stock valued at $1,836,543 over the last quarter. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Arlo Technologies

Several institutional investors have recently modified their holdings of ARLO. BlackRock Inc. acquired a new position in Arlo Technologies during the 2nd quarter worth $235,992,000. Wasatch Advisors LP increased its holdings in shares of Arlo Technologies by 9.0% during the second quarter. Wasatch Advisors LP now owns 5,915,935 shares of the company's stock valued at $79,747,000 after purchasing an additional 489,668 shares during the period. Rice Hall James & Associates LLC bought a new stake in shares of Arlo Technologies during the second quarter valued at about $50,320,000. Jupiter Topco LLC bought a new stake in shares of Arlo Technologies during the second quarter valued at about $34,557,000. Finally, Primecap Management Co. CA acquired a new stake in Arlo Technologies in the second quarter worth about $26,183,000. Institutional investors own 83.18% of the company's stock.

About Arlo Technologies

Arlo Technologies, Inc develops connected smart home security products and services. Its portfolio includes wire-free and wired security cameras, video doorbells, floodlight cameras, baby monitors and related accessories designed for residential and small-business use.

The company combines its hardware with cloud-based software and subscription services, including Arlo Secure. These services provide features such as video storage, activity notifications, person, vehicle and package detection, emergency response options and other monitoring and security capabilities, depending on the product and service plan.

Arlo was established as a standalone company following its separation from Netgear and became an independent publicly traded company in 2018.

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