Primecap Management Co. CA Acquires Shares of 1,942,330 Arlo Technologies, Inc. $ARLO

Key Points

• Primecap Management acquired 1.94 million Arlo Technologies shares worth approximately $26.2 million, giving it a 1.79% stake. Institutional investors collectively own 83.18% of the company.
• Arlo reported quarterly earnings of $0.28 per share, exceeding estimates by $0.08, while revenue rose 20.5% year over year to $155.94 million.
• Analysts maintain a generally positive outlook, with five Buy ratings and two Holds; the consensus rating is Moderate Buy with a $20.60 price target, versus a recent share price of $13.05.

Primecap Management Co. CA bought a new position in shares of Arlo Technologies, Inc. (NYSE:ARLO - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,942,330 shares of the company's stock, valued at approximately $26,183,000. Primecap Management Co. CA owned about 1.79% of Arlo Technologies at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Arlo Technologies during the 2nd quarter worth $235,992,000. Vanguard Group Inc. lifted its holdings in shares of Arlo Technologies by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 10,691,336 shares of the company's stock worth $149,572,000 after acquiring an additional 32,770 shares during the last quarter. Brandes Investment Partners LP boosted its stake in shares of Arlo Technologies by 27.6% in the 4th quarter. Brandes Investment Partners LP now owns 8,198,707 shares of the company's stock valued at $114,700,000 after purchasing an additional 1,772,063 shares in the last quarter. Wasatch Advisors LP boosted its stake in shares of Arlo Technologies by 9.0% in the 2nd 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 in the last quarter. Finally, State Street Corp grew its holdings in shares of Arlo Technologies by 5.3% during the 2nd quarter. State Street Corp now owns 4,272,925 shares of the company's stock valued at $72,469,000 after purchasing an additional 215,867 shares during the last quarter. Institutional investors and hedge funds own 83.18% of the company's stock.

Insiders Place Their Bets

In other news, CFO Kurtis Joseph Binder sold 27,297 shares of Arlo Technologies stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $15.52, for a total value of $423,649.44. Following the completion of the transaction, the chief financial officer directly owned 442,110 shares of the company's stock, valued at approximately $6,861,547.20. This trade represents a 5.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 57,775 shares of company stock worth $845,139. Company insiders own 2.90% of the company's stock.

Wall Street Analyst Weigh In

ARLO has been the subject of a number of research analyst reports. William Blair started coverage on shares of Arlo Technologies in a research report on Tuesday, July 7th. They set an "outperform" rating for the company. Raymond James Financial reaffirmed an "outperform" rating and set a $19.00 target price on shares of Arlo Technologies in a research note on Friday, May 8th. Oppenheimer assumed coverage on shares of Arlo Technologies in a report on Monday, May 18th. They set an "outperform" rating and a $20.00 price target for the company. Wall Street Zen upgraded Arlo Technologies from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 22nd. Finally, UBS Group set a $20.00 price target on Arlo Technologies in a research note on Monday, May 18th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $20.60.

Arlo Technologies Stock Performance

Arlo Technologies stock opened at $13.05 on Thursday. Arlo Technologies, Inc. has a 52-week low of $11.05 and a 52-week high of $19.94. The firm has a 50 day moving average price of $13.58 and a two-hundred day moving average price of $13.53. The firm has a market cap of $1.42 billion, a price-to-earnings ratio of 48.34 and a beta of 1.56.

Arlo Technologies (NYSE:ARLO - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.28 EPS for the quarter, beating analysts' consensus estimates 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%. The company's quarterly revenue was up 20.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.17 EPS. 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. As a group, equities research analysts predict that Arlo Technologies, Inc. will post 0.12 EPS for the current fiscal year.

Arlo Technologies Company Profile

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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