Arlo Technologies (NYSE:ARLO) Shares Down 7.9% – Should You Sell?

Arlo Technologies, Inc. (NYSE:ARLO) shares dropped 7.9% during trading on Monday . The stock traded as low as $13.75 and last traded at $14.0220. 226,779 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 1,342,948 shares. The stock had previously closed at $15.23.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on ARLO shares. Piper Sandler raised their price target on Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a report on Friday. Weiss Ratings lowered Arlo Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, August 3rd. Wall Street Zen cut Arlo Technologies from a “strong-buy” rating to a “buy” rating in a report on Saturday. Raymond James Financial restated an “outperform” rating and issued a $19.00 target price on shares of Arlo Technologies in a research note on Friday, May 8th. Finally, William Blair assumed coverage on Arlo Technologies in a report on Tuesday, July 7th. They issued an “outperform” rating for the company. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Arlo Technologies presently has an average rating of “Moderate Buy” and a consensus target price of $20.60.

Arlo Technologies Price Performance

The firm has a 50 day moving average price of $13.38 and a 200-day moving average price of $13.46. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of 52.80 and a beta of 1.56.

Arlo Technologies (NYSE:ARLO) last announced 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 firm had revenue of $155.94 million during the quarter, compared to analyst estimates of $148.94 million. Arlo Technologies had a return on equity of 17.29% and a net margin of 5.20%.The company’s revenue was up 20.5% on a year-over-year basis. During the same period last year, the company earned $0.17 earnings per share. 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, sell-side analysts expect that Arlo Technologies, Inc. will post 0.2 EPS for the current fiscal year.

Insider Activity

In other news, CFO Kurtis Joseph Binder sold 27,297 shares of Arlo Technologies stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $15.52, for a total transaction of $423,649.44. Following the completion of the sale, the chief financial officer owned 442,110 shares in the company, valued at $6,861,547.20. The trade was a 5.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 57,775 shares of company stock valued at $845,139. 2.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Arlo Technologies

Several large investors have recently bought and sold shares of ARLO. BlackRock Inc. acquired a new stake in Arlo Technologies during the 2nd quarter worth $235,992,000. Vanguard Group Inc. boosted its position in shares of Arlo Technologies by 0.3% in the 4th 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 during the last quarter. Brandes Investment Partners LP boosted its position in shares of Arlo Technologies by 27.6% in the 4th 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 during the last quarter. Wasatch Advisors LP grew its stake in shares of Arlo Technologies by 9.0% during the second quarter. Wasatch Advisors LP now owns 5,915,935 shares of the company’s stock worth $79,747,000 after purchasing an additional 489,668 shares during the period. Finally, State Street Corp grew its stake in shares of Arlo Technologies by 5.3% during 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 during the period. 83.18% of the stock is currently owned by institutional investors and hedge funds.

Arlo Technologies Company Profile

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.