Brandes Investment Partners LP Grows Stake in Arlo Technologies, Inc. $ARLO

Key Points

• Brandes Investment Partners increased its Arlo Technologies stake by 27.6% in Q4, buying 1.77 million additional shares and ending with 8.2 million shares worth about $114.7 million, or 7.74% of the company.
• Analyst sentiment remains constructive: Raymond James, UBS, and Oppenheimer all issued bullish targets of $19 to $20, while MarketBeat shows a Moderate Buy consensus with a $21.40 average price target.
• Arlo reported a strong quarter with EPS of $0.28 versus expectations of $0.19 and revenue of $150.38 million, up 26.3% year over year; the company also authorized a $50 million share buyback.

Brandes Investment Partners LP grew its position in Arlo Technologies, Inc. (NYSE:ARLO - Free Report) by 27.6% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 8,198,707 shares of the company's stock after purchasing an additional 1,772,063 shares during the quarter. Brandes Investment Partners LP owned about 7.74% of Arlo Technologies worth $114,700,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of ARLO. AQR Capital Management LLC grew its holdings in Arlo Technologies by 28.8% in the first quarter. AQR Capital Management LLC now owns 406,688 shares of the company's stock worth $4,014,000 after purchasing an additional 90,970 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Arlo Technologies by 15.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 171,986 shares of the company's stock worth $1,698,000 after purchasing an additional 23,068 shares during the last quarter. Millennium Management LLC grew its holdings in Arlo Technologies by 116.1% in the first quarter. Millennium Management LLC now owns 455,692 shares of the company's stock worth $4,498,000 after purchasing an additional 244,783 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in Arlo Technologies by 115.1% in the first quarter. Goldman Sachs Group Inc. now owns 1,552,652 shares of the company's stock worth $15,325,000 after purchasing an additional 830,770 shares during the last quarter. Finally, Jane Street Group LLC grew its holdings in Arlo Technologies by 279.8% in the first quarter. Jane Street Group LLC now owns 292,302 shares of the company's stock worth $2,885,000 after purchasing an additional 215,343 shares during the last quarter. 83.18% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on ARLO shares. Raymond James Financial reaffirmed an "outperform" rating and issued a $19.00 price target on shares of Arlo Technologies in a report on Friday, May 8th. UBS Group set a $20.00 price objective on shares of Arlo Technologies in a report on Monday, May 18th. Weiss Ratings raised Arlo Technologies from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, May 11th. Finally, Oppenheimer assumed coverage on Arlo Technologies in a research note on Monday, May 18th. They issued an "outperform" rating and a $20.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $21.40.

Insider Buying and Selling

In related news, General Counsel Brian Busse sold 25,525 shares of the business's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $13.78, for a total transaction of $351,734.50. Following the completion of the transaction, the general counsel directly owned 583,364 shares in the company, valued at $8,038,755.92. The trade was a 4.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Matthew Blake Mcrae sold 153,433 shares of the business's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $13.78, for a total transaction of $2,114,306.74. Following the transaction, the chief executive officer owned 1,168,866 shares of the company's stock, valued at $16,106,973.48. This represents a 11.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 473,377 shares of company stock worth $6,688,435 in the last 90 days. Insiders own 2.90% of the company's stock.

Arlo Technologies Price Performance

Shares of ARLO stock opened at $12.78 on Wednesday. The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of 47.35 and a beta of 1.55. The business has a fifty day moving average of $13.71 and a 200 day moving average of $13.61. Arlo Technologies, Inc. has a 1 year low of $11.05 and a 1 year high of $19.94.

Arlo Technologies (NYSE:ARLO - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.19 by $0.09. The company had revenue of $150.38 million during the quarter, compared to analyst estimates of $139.73 million. Arlo Technologies had a return on equity of 18.66% and a net margin of 5.47%.The firm's quarterly revenue was up 26.3% on a year-over-year basis. During the same quarter last year, the business posted $0.15 EPS. Arlo Technologies has set its Q2 2026 guidance at 0.17-0.230 EPS. As a group, equities research analysts expect that Arlo Technologies, Inc. will post 0.2 earnings per share for the current year.

Arlo Technologies declared that its board has initiated a share repurchase plan on Wednesday, March 4th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to repurchase up to 3.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its stock is undervalued.

About Arlo Technologies

Arlo Technologies, Inc NYSE: ARLO is a provider of smart home security products and services designed for residential and small business customers. The company offers a portfolio of wireless and Wi-Fi-enabled security cameras, video doorbells, smart lighting solutions, and associated accessories. Arlo integrates advanced video analytics, motion detection, cloud storage, and two-way audio capabilities to deliver end-to-end security and monitoring solutions accessible through mobile applications and web interfaces.

Founded as a division of Netgear, Inc in 2014 and spun off as an independent public company in 2018, Arlo Technologies has established a presence in North America, Europe, Australia and parts of Asia.

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