Arlo Technologies (NYSE:ARLO) Shares Down 8.6% – What’s Next?

Arlo Technologies, Inc. (NYSE:ARLO)’s stock price was down 8.6% on Wednesday. The stock traded as low as $11.73 and last traded at $11.7030. 677,178 shares changed hands during mid-day trading, a decline of 49% from the average session volume of 1,338,917 shares. The stock had previously closed at $12.80.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Wall Street Zen downgraded Arlo Technologies from a “strong-buy” rating to a “buy” rating in a research note on Saturday, September 5th. Piper Sandler lifted their price target on shares of Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a report on Friday, August 7th. William Blair began coverage on shares of Arlo Technologies in a research report on Tuesday, July 7th. They set an “outperform” rating for the company. Finally, Weiss Ratings downgraded shares of Arlo Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, August 3rd. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $20.60.

Arlo Technologies Trading Down 5.1%

The stock has a market cap of $1.32 billion, a P/E ratio of 44.65 and a beta of 1.60. The business has a 50-day simple moving average of $13.62 and a 200 day simple moving average of $13.56.

Arlo Technologies (NYSE:ARLO) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.08. Arlo Technologies had a return on equity of 17.29% and a net margin of 5.20%.The company had revenue of $155.94 million during the quarter, compared to the consensus estimate of $148.94 million. During the same period last year, the company earned $0.17 earnings per share. The firm’s revenue was up 20.5% compared to the same quarter last year. 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 analysts expect that Arlo Technologies, Inc. will post 0.12 earnings per share for the current year.

Insider Buying and Selling at Arlo Technologies

In related news, CFO Kurtis Binder sold 13,358 shares of Arlo Technologies stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $12.58, for a total transaction of $168,043.64. Following the completion of the transaction, the chief financial officer 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 the SEC website. 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 have sold 137,837 shares of company stock worth $1,836,543 in the last ninety days. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Continuum Advisory LLC acquired a new stake in Arlo Technologies during the second quarter worth approximately $28,000. Integrated Wealth Concepts LLC acquired a new position in Arlo Technologies in the second quarter valued at approximately $29,000. Quantbot Technologies LP bought a new position in shares of Arlo Technologies during the 2nd quarter worth approximately $88,000. Readystate Asset Management LP acquired a new stake in shares of Arlo Technologies during the 1st quarter worth approximately $142,000. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Arlo Technologies by 20.0% in the 1st quarter. EverSource Wealth Advisors LLC now owns 11,281 shares of the company’s stock valued at $161,000 after acquiring an additional 1,884 shares in the last quarter. 83.18% of the stock is owned by institutional investors.

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.