Arlo Technologies (NYSE:ARLO) Stock Price Down 8.6% – What’s Next?

Arlo Technologies, Inc. (NYSE:ARLO)’s stock price dropped 8.6% during trading on Wednesday. The company traded as low as $11.73 and last traded at $11.7030. 677,178 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 1,338,917 shares. The stock had previously closed at $12.80.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Piper Sandler upped their price objective on shares of Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a report on Friday, August 7th. William Blair began coverage on Arlo Technologies in a research note on Tuesday, July 7th. They set an “outperform” rating on the stock. Weiss Ratings lowered Arlo Technologies from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, August 3rd. Finally, Wall Street Zen cut Arlo Technologies from a “strong-buy” rating to a “buy” rating in a research note on Saturday, September 5th. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $20.60.

Arlo Technologies Stock Down 5.1%

The business’s 50 day simple moving average is $13.62 and its two-hundred day simple moving average is $13.56. The stock has a market capitalization of $1.32 billion, a P/E ratio of 44.65 and a beta of 1.60.

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

Insiders Place Their Bets

In other Arlo Technologies news, CFO Kurtis Binder sold 83,211 shares of Arlo Technologies stock in a transaction on Monday, September 28th. The shares were sold at an average price of $12.44, for a total transaction of $1,035,144.84. Following the transaction, the chief financial officer directly owned 358,899 shares of the company’s stock, valued at $4,464,703.56. The trade was a 18.82% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 137,837 shares of company stock worth $1,836,543. 2.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Arlo Technologies

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Arlo Technologies during the 2nd quarter valued at $235,992,000. Rice Hall James & Associates LLC purchased a new position in shares of Arlo Technologies in the 2nd quarter worth about $50,320,000. Jupiter Topco LLC purchased a new position in shares of Arlo Technologies in the 2nd quarter worth about $34,557,000. Primecap Management Co. CA bought a new position in Arlo Technologies during the second quarter valued at about $26,183,000. Finally, Brandes Investment Partners LP grew its position in Arlo Technologies by 27.6% during the fourth quarter. Brandes Investment Partners LP now owns 8,198,707 shares of the company’s stock valued at $114,700,000 after buying an additional 1,772,063 shares during the period. 83.18% of the stock is owned by institutional investors.

Arlo Technologies Company Profile

Arlo Technologies, Inc develops connected smart home security products and services. Its portfolio includes wire-free and wired security cameras, video doorbells, floodlight cameras, baby monitors and related accessories designed for residential and small-business use.

The company combines its hardware with cloud-based software and subscription services, including Arlo Secure. These services provide features such as video storage, activity notifications, person, vehicle and package detection, emergency response options and other monitoring and security capabilities, depending on the product and service plan.

Arlo was established as a standalone company following its separation from Netgear and became an independent publicly traded company in 2018.