Arlo Technologies (NYSE:ARLO) Shares Climb 13.3% – What’s Next?

Shares of Arlo Technologies, Inc. (NYSE:ARLO) traded up 13.3% during trading on Wednesday. The company traded as high as $15.46 and last traded at $15.54. Approximately 1,564,923 shares were traded during mid-day trading, an increase of 11% from the average session volume of 1,410,948 shares. The stock had previously closed at $13.71.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on ARLO. Wall Street Zen lowered shares of Arlo Technologies from a “strong-buy” rating to a “buy” rating in a report on Saturday. Weiss Ratings restated a “hold (c-)” rating on shares of Arlo Technologies in a research report on Friday. William Blair began coverage on shares of Arlo Technologies in a research note on Tuesday, July 7th. They set an “outperform” rating for the company. Finally, Piper Sandler dropped their price target on Arlo Technologies from $18.00 to $16.00 and set an “overweight” rating for the company in a research report on Tuesday, October 20th. Five equities research 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.com, Arlo Technologies presently has an average rating of “Moderate Buy” and a consensus price target of $20.20.

Arlo Technologies Price Performance

The company has a market capitalization of $1.65 billion, a price-to-earnings ratio of 56.33 and a beta of 1.59. The business has a 50 day simple moving average of $13.00 and a 200 day simple moving average of $13.38.

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

Insider Buying and Selling at Arlo Technologies

In other news, CFO Kurtis Binder sold 13,358 shares of the company’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $12.58, for a total value of $168,043.64. Following the completion of the transaction, the chief financial officer owned 345,541 shares in the company, valued at approximately $4,346,905.78. This represents a 3.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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. Corporate insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Arlo Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in ARLO. BlackRock Inc. purchased a new position in Arlo Technologies in the 2nd quarter valued at approximately $235,992,000. Wasatch Advisors LP grew its holdings in Arlo Technologies by 9.0% in the second quarter. Wasatch Advisors LP now owns 5,915,935 shares of the company’s stock valued at $79,747,000 after purchasing an additional 489,668 shares during the last quarter. Rice Hall James & Associates LLC purchased a new position in shares of Arlo Technologies in the second quarter valued at $50,320,000. Jupiter Topco LLC purchased a new position in shares of Arlo Technologies in the second quarter valued at $34,557,000. Finally, Primecap Management Co. CA acquired a new position in shares of Arlo Technologies during the 2nd quarter worth $26,183,000. Hedge funds and other institutional investors own 83.18% of the company’s stock.

Arlo Technologies Company Profile

Arlo Technologies, Inc is a smart home security company that develops connected devices and cloud-based services designed to help consumers monitor and protect their homes, businesses and other properties. Its product portfolio includes wire-free and wired security cameras, video doorbells, floodlight cameras, home security systems and related accessories.

Arlo’s products typically connect through mobile applications and cloud services, providing features such as live video, motion detection, two-way audio, night vision and notifications.