Brokerages Set Arlo Technologies, Inc. (NYSE:ARLO) Target Price at $21.40

Arlo Technologies, Inc. (NYSE:ARLO) has received an average rating of “Moderate Buy” from the six research firms that are presently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $21.40.

A number of research analysts have recently commented on the stock. Oppenheimer assumed coverage on shares of Arlo Technologies in a research report on Monday, May 18th. They set an “outperform” rating and a $20.00 price objective for the company. UBS Group set a $20.00 price target on shares of Arlo Technologies in a research report on Monday, May 18th. Weiss Ratings raised shares of Arlo Technologies from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 11th. Finally, Raymond James Financial reissued an “outperform” rating and issued a $19.00 price target on shares of Arlo Technologies in a research report on Friday, May 8th.

Arlo Technologies Stock Performance

Shares of ARLO opened at $12.95 on Wednesday. The company has a 50-day simple moving average of $13.63 and a 200-day simple moving average of $13.60. The firm has a market capitalization of $1.41 billion, a P/E ratio of 47.95 and a beta of 1.55. Arlo Technologies has a 52 week low of $11.05 and a 52 week high of $19.94.

Arlo Technologies (NYSE:ARLO) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.19 by $0.09. The business had revenue of $150.38 million during the quarter, compared to analyst estimates of $139.73 million. Arlo Technologies had a net margin of 5.47% and a return on equity of 18.66%. The firm’s revenue for the quarter was up 26.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.15 earnings per share. Arlo Technologies has set its Q2 2026 guidance at 0.17-0.230 EPS. As a group, equities analysts forecast that Arlo Technologies will post 0.2 earnings per share for the current year.

Arlo Technologies declared that its board has initiated a stock buyback program 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 shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

Insider Transactions at Arlo Technologies

In related news, CFO Kurtis Joseph Binder sold 65,000 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $15.70, for a total value of $1,020,500.00. Following the completion of the transaction, the chief financial officer owned 499,885 shares of the company’s stock, valued at $7,848,194.50. This represents a 11.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 115,000 shares of company stock valued at $1,750,000 over the last three months. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in 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 purchasing an additional 32,770 shares in the last quarter. Brandes Investment Partners LP raised its position in Arlo Technologies by 27.6% in the fourth quarter. Brandes Investment Partners LP now owns 8,198,707 shares of the company’s stock worth $114,700,000 after purchasing an additional 1,772,063 shares in the last quarter. Wasatch Advisors LP raised its position in Arlo Technologies by 17.7% in the third quarter. Wasatch Advisors LP now owns 5,505,467 shares of the company’s stock worth $93,318,000 after purchasing an additional 826,587 shares in the last quarter. State Street Corp raised its position in Arlo Technologies by 5.3% in the second quarter. State Street Corp now owns 4,272,925 shares of the company’s stock worth $72,469,000 after purchasing an additional 215,867 shares in the last quarter. Finally, Rice Hall James & Associates LLC raised its position in Arlo Technologies by 2.3% in the first quarter. Rice Hall James & Associates LLC now owns 3,659,888 shares of the company’s stock worth $52,080,000 after purchasing an additional 83,276 shares in the last quarter. Institutional investors and hedge funds 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.