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

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

Wall Street Analyst Weigh In

Several brokerages recently commented on ARLO. Weiss Ratings upgraded Arlo Technologies from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, March 6th. Raymond James Financial reissued an “outperform” rating and issued a $19.00 price target on shares of Arlo Technologies in a research note on Friday. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Arlo Technologies currently has an average rating of “Moderate Buy” and a consensus target price of $22.33.

Arlo Technologies Stock Down 10.7%

The business has a 50-day moving average price of $14.20 and a two-hundred day moving average price of $14.24. The company has a market capitalization of $1.48 billion, a price-to-earnings ratio of 50.43 and a beta of 1.60.

Arlo Technologies (NYSE:ARLO) last announced 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 during the quarter, compared to the consensus estimate of $139.73 million. During the same quarter in the prior year, the company posted $0.15 earnings per share. Arlo Technologies’s revenue 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. On average, sell-side analysts anticipate that Arlo Technologies, Inc. will post 0.16 EPS for the current fiscal year.

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

Insider Buying and Selling at Arlo Technologies

In other Arlo Technologies news, General Counsel Brian Busse sold 25,525 shares of the company’s stock in a transaction 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 transaction, the general counsel owned 583,364 shares in the company, valued at $8,038,755.92. This represents a 4.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Matthew Blake Mcrae sold 153,433 shares of the stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $13.78, for a total value 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. The trade was a 11.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 465,478 shares of company stock worth $6,522,193 in the last quarter. 2.90% of the stock is currently owned by company insiders.

Institutional Trading of Arlo Technologies

Institutional investors have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC lifted its holdings in Arlo Technologies by 86.0% during the 3rd quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company’s stock worth $28,000 after purchasing an additional 747 shares in the last quarter. Hantz Financial Services Inc. lifted its holdings in Arlo Technologies by 763.3% during the 4th quarter. Hantz Financial Services Inc. now owns 1,977 shares of the company’s stock worth $28,000 after purchasing an additional 1,748 shares in the last quarter. Quarry LP lifted its holdings in Arlo Technologies by 42.0% during the 3rd quarter. Quarry LP now owns 2,649 shares of the company’s stock worth $45,000 after purchasing an additional 783 shares in the last quarter. Quadrant Capital Group LLC purchased a new stake in Arlo Technologies during the 3rd quarter worth about $86,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in Arlo Technologies by 1,682.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,616 shares of the company’s stock worth $95,000 after purchasing an additional 5,301 shares in 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.