Arlo Technologies (NYSE:ARLO) Shares Gap Up – Time to Buy?

Arlo Technologies, Inc. (NYSE:ARLO) gapped up prior to trading on Tuesday. The stock had previously closed at $12.38, but opened at $13.21. Arlo Technologies shares last traded at $12.7610, with a volume of 252,378 shares traded.

Key Headlines Impacting Arlo Technologies

Here are the key news stories impacting Arlo Technologies this week:

• Positive Sentiment: Arlo’s board approved a repurchase program allowing the company to buy back up to $100 million of its common stock. The authorization may provide support for the share price and potentially enhance per-share results, although the timing and amount of actual repurchases remain at management’s discretion. Arlo Technologies Approves Share Buyback Program
• Positive Sentiment: Coverage of the buyback announcement reported a sharp move in ARLO shares, indicating that investors viewed the capital-return plan favorably. The program follows a quarter in which Arlo reported $155.9 million in revenue and $0.28 in adjusted earnings per share, both ahead of expectations. Arlo Technologies Stock Rises on $100M Buyback Program
• Neutral Sentiment: Arlo also announced equity awards for newly hired employees under its 2018 Equity Incentive Plan in compliance with NYSE rules. The grants may help attract talent but could modestly dilute existing shareholders; the release did not disclose the award size. Arlo Technologies Announces Inducement Awards

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ARLO. Weiss Ratings cut shares of Arlo Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, August 3rd. William Blair assumed coverage on Arlo Technologies in a research report on Tuesday, July 7th. They set an “outperform” rating on the stock. Wall Street Zen raised shares of Arlo Technologies from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 10th. Finally, Piper Sandler dropped their target price on Arlo Technologies from $18.00 to $16.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 20th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $20.20.

Arlo Technologies Trading Up 4.5%

The firm’s 50 day simple moving average is $12.91 and its 200-day simple moving average is $13.37. The stock has a market capitalization of $1.48 billion, a price-to-earnings ratio of 50.50 and a beta of 1.60.

Arlo Technologies (NYSE:ARLO) last posted 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 company had revenue of $155.94 million during the quarter, compared to the consensus estimate of $148.94 million. Arlo Technologies had a net margin of 5.20% and a return on equity of 17.29%. The company’s quarterly revenue was up 20.5% on a year-over-year basis. During the same period in the prior year, the business posted $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. As a group, equities research analysts predict that Arlo Technologies, Inc. will post 0.12 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Kurtis Binder sold 83,211 shares of the stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $12.44, for a total transaction of $1,035,144.84. Following the completion of the transaction, the chief financial officer directly owned 358,899 shares of the company’s stock, valued at approximately $4,464,703.56. This represents a 18.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Insiders sold 137,837 shares of company stock worth $1,836,543 over the last ninety days. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ARLO. Hennessy Advisors Inc. bought a new position in shares of Arlo Technologies in the third quarter valued at about $175,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Arlo Technologies during the 3rd quarter worth about $248,000. Choreo LLC grew its stake in Arlo Technologies by 7.4% in the 3rd quarter. Choreo LLC now owns 13,695 shares of the company’s stock valued at $170,000 after buying an additional 943 shares during the last quarter. Smith Group Asset Management LLC grew its position in shares of Arlo Technologies by 1.6% in the third quarter. Smith Group Asset Management LLC now owns 54,810 shares of the company’s stock valued at $680,000 after purchasing an additional 866 shares during the last quarter. Finally, Sterling Capital Management LLC grew its position in shares of Arlo Technologies by 848.3% in the third quarter. Sterling Capital Management LLC now owns 3,613 shares of the company’s stock valued at $45,000 after purchasing an additional 3,232 shares during the last quarter. Institutional investors own 83.18% of the company’s stock.

About Arlo Technologies

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.