Arlo Technologies (NYSE:ARLO) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Arlo Technologies (NYSE:ARLO) from a hold rating to a sell rating in a research report sent to investors on Wednesday, Zacks.com reports.

According to Zacks, “Arlo Technologies, Inc. product design, wireless connectivity, cloud infrastructure and cutting-edge AI capabilities focuses on delivering a seamless, smart home experience. The company’s cloud-based platform provides users with visibility, insight and a powerful means to help protect and connect in real-time. Its connected devices, including wire-free smart Wi-Fi and LTE-enabled cameras, advanced baby monitors and smart security lights. Arlo Technologies, Inc. is based in San Jose, United States. “

ARLO has been the subject of a number of other research reports. Deutsche Bank initiated coverage on shares of Arlo Technologies in a research note on Monday, November 11th. They set a buy rating and a $4.00 price objective for the company. Bank of America reaffirmed an underperform rating and set a $3.50 price objective (down previously from $5.00) on shares of Arlo Technologies in a research note on Wednesday, August 7th. Two analysts have rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $5.20.

NYSE:ARLO traded down $0.04 on Wednesday, reaching $2.94. The stock had a trading volume of 714,503 shares, compared to its average volume of 757,390. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.74 and a quick ratio of 1.37. The firm’s fifty day moving average is $3.32 and its two-hundred day moving average is $3.64. Arlo Technologies has a 12-month low of $2.66 and a 12-month high of $13.52.

Arlo Technologies (NYSE:ARLO) last released its earnings results on Thursday, November 7th. The company reported ($0.32) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.37) by $0.05. The company had revenue of $106.12 million for the quarter, compared to analyst estimates of $102.14 million. Arlo Technologies had a negative net margin of 36.49% and a negative return on equity of 62.20%. The firm’s quarterly revenue was down 19.1% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.05) EPS. Research analysts expect that Arlo Technologies will post -1.8 EPS for the current year.

In related news, Director Ralph E. Faison acquired 36,000 shares of the company’s stock in a transaction dated Monday, November 11th. The stock was bought at an average price of $2.88 per share, with a total value of $103,680.00. Following the purchase, the director now directly owns 182,725 shares in the company, valued at approximately $526,248. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Matthew Blake Mcrae acquired 36,600 shares of the company’s stock in a transaction dated Monday, November 11th. The shares were bought at an average cost of $2.73 per share, with a total value of $99,918.00. Following the purchase, the chief executive officer now owns 319,799 shares in the company, valued at $873,051.27. The disclosure for this purchase can be found here. Corporate insiders own 0.74% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of ARLO. SG Americas Securities LLC acquired a new stake in Arlo Technologies during the 3rd quarter worth approximately $44,000. Marshall Wace LLP acquired a new stake in Arlo Technologies during the 1st quarter worth approximately $74,000. Bank of Montreal Can increased its position in Arlo Technologies by 92.4% during the 2nd quarter. Bank of Montreal Can now owns 19,243 shares of the company’s stock worth $77,000 after purchasing an additional 9,243 shares in the last quarter. Eidelman Virant Capital acquired a new stake in Arlo Technologies during the 2nd quarter worth approximately $80,000. Finally, Metropolitan Life Insurance Co NY acquired a new stake in Arlo Technologies during the 1st quarter worth approximately $80,000. 86.04% of the stock is owned by hedge funds and other institutional investors.

Arlo Technologies Company Profile

Arlo Technologies, Inc provides smart connected devices to monitor the environments in real-time with a Wi-Fi or a cellular network Internet connection in the Americas, Europe, the Middle-East and Africa, and the Asia Pacific regions. It offers Arlo Security Camera, a battery-operated Wi-Fi security camera; Arlo Q and Arlo Q Plus, an indoor wired solution that allow users to monitor their surroundings; Arlo Pro, a battery-operated weather-resistant Wi-Fi camera; Arlo Go, an LTE-enabled wire-free camera that provides untethered mobile monitoring; and Arlo Baby, a baby monitor with air quality and temperature sensors, motion and audio detection, and advanced night vision.

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