Arlo Technologies, Inc. (NYSE:ARLO) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Arlo Technologies, with five buys and two holds among seven covering firms. The average 12-month price target is $20.60 versus a recent share price of $13.34.
• Arlo exceeded quarterly expectations, reporting adjusted EPS of $0.28 versus the $0.20 consensus and revenue of $155.94 million versus $148.94 million expected. Revenue increased 20.5% year over year.
• Insiders have been net sellers, with executives selling 57,775 shares worth approximately $845,000 over the past three months, while hedge funds and other institutions own 83.18% of the stock.

Shares of Arlo Technologies, Inc. (NYSE:ARLO - Get Free Report) have received an average recommendation of "Moderate Buy" from the seven ratings firms that are presently covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $20.60.

A number of brokerages recently weighed in on ARLO. Wall Street Zen cut Arlo Technologies from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 5th. William Blair started coverage on shares of Arlo Technologies in a report on Tuesday, July 7th. They issued an "outperform" rating for the company. Piper Sandler increased their price target on shares of Arlo Technologies from $17.00 to $18.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Finally, Weiss Ratings lowered shares of Arlo Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, August 3rd.

Insider Activity at Arlo Technologies

In related news, CFO Kurtis Binder sold 27,297 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $15.52, for a total transaction of $423,649.44. Following the completion of the sale, the chief financial officer owned 442,110 shares of the company's stock, valued at $6,861,547.20. This represents a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 57,775 shares of company stock worth $845,139. Insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Arlo Technologies

Several institutional investors and hedge funds have recently bought and sold shares of ARLO. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Arlo Technologies by 0.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 175,788 shares of the company's stock valued at $2,370,000 after acquiring an additional 794 shares during the last quarter. Oregon Public Employees Retirement Fund lifted its position in shares of Arlo Technologies by 3.4% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 24,268 shares of the company's stock valued at $340,000 after acquiring an additional 800 shares in the last quarter. Cetera Investment Advisers boosted its stake in shares of Arlo Technologies by 12.2% in the first quarter. Cetera Investment Advisers now owns 15,253 shares of the company's stock worth $217,000 after acquiring an additional 1,657 shares during the last quarter. Hantz Financial Services Inc. boosted its stake in shares of Arlo Technologies by 763.3% in the fourth quarter. Hantz Financial Services Inc. now owns 1,977 shares of the company's stock worth $28,000 after acquiring an additional 1,748 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in shares of Arlo Technologies by 20.0% during the first quarter. EverSource Wealth Advisors LLC now owns 11,281 shares of the company's stock worth $161,000 after purchasing an additional 1,884 shares in the last quarter. 83.18% of the stock is owned by hedge funds and other institutional investors.

Arlo Technologies Stock Performance

Shares of ARLO opened at $13.34 on Friday. The company has a 50 day moving average price of $13.69 and a 200-day moving average price of $13.67. Arlo Technologies has a fifty-two week low of $11.05 and a fifty-two week high of $19.94. The stock has a market capitalization of $1.45 billion, a PE ratio of 49.39 and a beta of 1.54.

Arlo Technologies (NYSE:ARLO - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.08. The company had revenue of $155.94 million for the quarter, compared to analyst estimates of $148.94 million. Arlo Technologies had a net margin of 5.20% and a return on equity of 17.29%. Arlo Technologies's revenue was up 20.5% compared to the same quarter last year. During the same period last year, the company posted $0.17 earnings per share. 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. Equities research analysts forecast that Arlo Technologies will post 0.12 EPS for the current year.

About Arlo Technologies

Arlo Technologies, Inc develops and sells connected home security products and services. Its portfolio includes wire-free security cameras, video doorbells, floodlight cameras, indoor cameras, and related accessories designed to help consumers monitor and protect their homes and properties.

The company also provides cloud-based services that support video recording, storage, notifications, artificial intelligence-enabled detection, and other security features. Arlo offers subscription plans that provide additional capabilities, including more extensive video history and advanced monitoring features, alongside its hardware products.

Arlo was established as a standalone company following its separation from Netgear in 2018 and is headquartered in Carlsbad, California.

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