Arlo Technologies (NYSE:ARLO) Trading Down 6.8% – What’s Next?

Arlo Technologies, Inc. (NYSE:ARLO) shares dropped 6.8% during trading on Wednesday . The company traded as low as $13.08 and last traded at $13.1450. Approximately 698,920 shares were traded during mid-day trading, a decline of 48% from the average daily volume of 1,350,699 shares. The stock had previously closed at $14.11.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on ARLO. William Blair assumed coverage on Arlo Technologies in a research note on Tuesday, July 7th. They issued an “outperform” rating for the company. Wall Street Zen cut Arlo Technologies from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 5th. Piper Sandler raised their price target on Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a report on Friday, August 7th. UBS Group set a $20.00 price objective on Arlo Technologies in a research report on Monday, May 18th. Finally, Oppenheimer assumed coverage on Arlo Technologies in a report on Monday, May 18th. They set an “outperform” rating and a $20.00 price objective for the company. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Arlo Technologies has a consensus rating of “Moderate Buy” and a consensus target price of $20.60.

Arlo Technologies Trading Down 1.0%

The stock has a 50 day moving average price of $13.65 and a two-hundred day moving average price of $13.64. The company has a market cap of $1.41 billion, a price-to-earnings ratio of 48.15 and a beta of 1.54.

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

Insider Activity

In other news, CFO Kurtis Binder sold 27,297 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $15.52, for a total transaction of $423,649.44. Following the completion of the transaction, the chief financial officer directly owned 442,110 shares in the company, valued at approximately $6,861,547.20. The trade was a 5.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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. 2.90% of the stock is currently owned by insiders.

Institutional Trading of Arlo Technologies

A number of hedge funds have recently modified their holdings of the company. Hantz Financial Services Inc. increased its stake in Arlo Technologies by 763.3% in the fourth quarter. Hantz Financial Services Inc. now owns 1,977 shares of the company’s stock valued at $28,000 after purchasing an additional 1,748 shares in the last quarter. Continuum Advisory LLC bought a new position in shares of Arlo Technologies during the second quarter worth $28,000. Integrated Wealth Concepts LLC bought a new position in shares of Arlo Technologies during the second quarter worth $29,000. Quarry LP grew its holdings in shares of Arlo Technologies by 42.0% in the 3rd 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 period. Finally, Strs Ohio acquired a new position in shares of Arlo Technologies in the 1st quarter valued at $66,000. 83.18% of the stock is currently owned by institutional investors and hedge funds.

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.