Arlo Technologies (NYSE:ARLO) Trading Down 7.3% – Time to Sell?

Arlo Technologies, Inc. (NYSE:ARLO) shares were down 7.3% during mid-day trading on Monday . The company traded as low as $14.43 and last traded at $14.1310. Approximately 172,275 shares changed hands during trading, a decline of 87% from the average daily volume of 1,372,877 shares. The stock had previously closed at $15.25.

Analysts Set New Price Targets

A number of analysts recently issued reports on ARLO shares. Raymond James Financial reissued an “outperform” rating and set a $19.00 price objective on shares of Arlo Technologies in a report on Friday. Weiss Ratings raised Arlo Technologies from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, March 6th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Arlo Technologies has an average rating of “Moderate Buy” and an average price target of $22.33.

Arlo Technologies Trading Down 10.7%

The company has a market capitalization of $1.48 billion, a PE ratio of 50.43 and a beta of 1.60. The stock has a fifty day moving average of $14.20 and a two-hundred day moving average of $14.24.

Arlo Technologies (NYSE:ARLO) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.09. Arlo Technologies had a return on equity of 18.66% and a net margin of 5.47%.The business had revenue of $150.38 million for the quarter, compared to analyst estimates of $139.73 million. During the same period last year, the company earned $0.15 EPS. Arlo Technologies’s revenue for the quarter was up 26.3% compared to the same quarter last year. Arlo Technologies has set its Q2 2026 guidance at 0.17-0.230 EPS. Equities analysts forecast that Arlo Technologies, Inc. will post 0.16 EPS for the current year.

Arlo Technologies announced that its Board of Directors has authorized a share buyback program on Wednesday, March 4th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 3.1% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

Insider Transactions at Arlo Technologies

In other news, CFO Kurtis Joseph Binder sold 25,000 shares of Arlo Technologies stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $15.19, for a total value of $379,750.00. Following the sale, the chief financial officer directly owned 564,885 shares in the company, valued at approximately $8,580,603.15. This trade represents a 4.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Brian Busse sold 25,525 shares of Arlo Technologies stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $13.78, for a total value of $351,734.50. Following the completion of the sale, the general counsel owned 583,364 shares in the company, valued at approximately $8,038,755.92. This represents a 4.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 465,478 shares of company stock worth $6,522,193. 2.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Smartleaf Asset Management LLC raised its stake in Arlo Technologies by 86.0% during the third quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company’s stock valued at $28,000 after buying an additional 747 shares during the last quarter. Hantz Financial Services Inc. raised its stake in Arlo Technologies by 763.3% during the fourth quarter. Hantz Financial Services Inc. now owns 1,977 shares of the company’s stock valued at $28,000 after buying an additional 1,748 shares during the last quarter. Quarry LP raised its stake in Arlo Technologies by 42.0% during the third quarter. Quarry LP now owns 2,649 shares of the company’s stock valued at $45,000 after buying an additional 783 shares during the last quarter. Quadrant Capital Group LLC purchased a new position in Arlo Technologies during the third quarter valued at $86,000. Finally, EverSource Wealth Advisors LLC raised its stake in Arlo Technologies by 1,682.9% during the second quarter. EverSource Wealth Advisors LLC now owns 5,616 shares of the company’s stock valued at $95,000 after buying an additional 5,301 shares during the last quarter. Hedge funds and other institutional investors own 83.18% of the company’s stock.

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.