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

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

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Piper Sandler boosted their price target on Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. UBS Group set a $20.00 target price on shares of Arlo Technologies in a research note on Monday, May 18th. William Blair began coverage on shares of Arlo Technologies in a research report on Tuesday, July 7th. They issued an “outperform” rating for the company. Wall Street Zen lowered shares of Arlo Technologies from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Finally, Oppenheimer began coverage on shares of Arlo Technologies in a report on Monday, May 18th. They set an “outperform” rating and a $20.00 price target on the stock. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $20.60.

Arlo Technologies Trading Down 6.4%

The company has a fifty day moving average of $13.66 and a two-hundred day moving average of $13.62. The stock has a market capitalization of $1.43 billion, a price-to-earnings ratio of 48.89 and a beta of 1.54.

Arlo Technologies (NYSE:ARLO) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.28 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $148.94 million. During the same quarter last year, the company posted $0.17 earnings per share. The company’s revenue for the quarter 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, sell-side analysts predict that Arlo Technologies, Inc. will post 0.12 earnings per share for the current fiscal year.

Insider Transactions at Arlo Technologies

In other news, CFO Kurtis Binder sold 27,297 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $15.52, for a total value of $423,649.44. Following the sale, the chief financial officer directly owned 442,110 shares of the company’s stock, valued at approximately $6,861,547.20. This trade represents a 5.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 57,775 shares of company stock worth $845,139 in the last three months. 2.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ARLO. AQR Capital Management LLC boosted its position in shares of Arlo Technologies by 28.8% in the first quarter. AQR Capital Management LLC now owns 406,688 shares of the company’s stock valued at $4,014,000 after acquiring an additional 90,970 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Arlo Technologies by 15.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 171,986 shares of the company’s stock valued at $1,698,000 after purchasing an additional 23,068 shares during the period. Millennium Management LLC boosted its holdings in Arlo Technologies by 116.1% in the 1st quarter. Millennium Management LLC now owns 455,692 shares of the company’s stock valued at $4,498,000 after purchasing an additional 244,783 shares during the period. Goldman Sachs Group Inc. grew its position in Arlo Technologies by 115.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,552,652 shares of the company’s stock worth $15,325,000 after purchasing an additional 830,770 shares during the last quarter. Finally, Jane Street Group LLC grew its position in Arlo Technologies by 279.8% in the 1st quarter. Jane Street Group LLC now owns 292,302 shares of the company’s stock worth $2,885,000 after purchasing an additional 215,343 shares during the last quarter. 83.18% of the stock is owned by institutional investors.

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.