Arlo Technologies (NYSE:ARLO) Shares Down 10% – Here’s Why

Arlo Technologies, Inc. (NYSE:ARLO) shares dropped 10% during mid-day trading on Friday . The company traded as low as $14.91 and last traded at $15.2430. Approximately 135,562 shares changed hands during trading, a decline of 88% from the average daily volume of 1,111,755 shares. The stock had previously closed at $16.94.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on ARLO. Raymond James Financial reissued an “outperform” rating and set a $22.00 price target (up from $15.00) on shares of Arlo Technologies in a research report on Friday, August 8th. Zacks Research cut shares of Arlo Technologies from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 7th. Craig Hallum upped their target price on Arlo Technologies from $17.00 to $22.00 and gave the company a “buy” rating in a report on Friday, August 8th. BWS Financial reaffirmed a “buy” rating and set a $26.00 price target (up from $24.00) on shares of Arlo Technologies in a research report on Monday, August 11th. Finally, Wall Street Zen raised Arlo Technologies from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 11th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Arlo Technologies presently has an average rating of “Hold” and an average price target of $23.00.

Arlo Technologies Price Performance

The firm’s 50 day moving average price is $17.81 and its two-hundred day moving average price is $16.06. The stock has a market cap of $1.58 billion, a PE ratio of -216.40 and a beta of 1.69.

Arlo Technologies (NYSE:ARLO) last issued its earnings results on Thursday, November 6th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.01. The business had revenue of $139.53 million for the quarter, compared to analysts’ expectations of $138.69 million. Arlo Technologies had a negative net margin of 1.38% and a negative return on equity of 6.69%. The business’s revenue for the quarter was up 1.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.11 EPS. Arlo Technologies has set its Q4 2025 guidance at 0.130-0.190 EPS. Analysts anticipate that Arlo Technologies, Inc. will post -0.29 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Kurtis Joseph Binder sold 51,668 shares of Arlo Technologies stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $17.82, for a total transaction of $920,723.76. Following the completion of the sale, the chief financial officer owned 416,013 shares in the company, valued at approximately $7,413,351.66. This trade represents a 11.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, General Counsel Brian Busse sold 9,171 shares of Arlo Technologies stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $16.99, for a total transaction of $155,815.29. Following the sale, the general counsel owned 669,376 shares of the company’s stock, valued at approximately $11,372,698.24. The trade was a 1.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 912,405 shares of company stock valued at $15,764,818. Company insiders own 5.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Amalgamated Bank boosted its stake in Arlo Technologies by 2.4% in the second quarter. Amalgamated Bank now owns 29,265 shares of the company’s stock worth $496,000 after buying an additional 692 shares in the last quarter. Arizona State Retirement System increased its holdings in shares of Arlo Technologies by 2.3% in the third quarter. Arizona State Retirement System now owns 30,597 shares of the company’s stock worth $519,000 after buying an additional 702 shares during the period. Smartleaf Asset Management LLC increased its holdings in shares of Arlo Technologies by 86.0% in the third quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company’s stock worth $28,000 after buying an additional 747 shares during the period. Bank of Montreal Can boosted its holdings in Arlo Technologies by 5.4% during the 2nd quarter. Bank of Montreal Can now owns 15,694 shares of the company’s stock valued at $266,000 after acquiring an additional 810 shares during the period. Finally, Ameritas Investment Partners Inc. grew its position in Arlo Technologies by 9.0% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 10,155 shares of the company’s stock worth $172,000 after acquiring an additional 838 shares during the last quarter. 83.18% of the stock is currently owned by hedge funds and other institutional investors.

Arlo Technologies Company Profile

Arlo Technologies, Inc, together with its subsidiaries, provides a cloud-based platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers Arlo Essential Cameras and Doorbells (2nd Generation) delivers smart home protection, including automated privacy shield, 180-degree field of view, and 2K video resolution; Arlo Home Security System, an all-in-one multi-sensor that provides access to security experts for monitoring and responding to emergency situations; Arlo Pro 5S, a wireless 2K video resolution security camera; Arlo Go 2, a camera for monitoring remote areas, large properties, construction sites, vacation homes, boat or RV slips, and hard-to-access areas; Arlo Ultra 2 provides 4K video with HDR, an ultra-wide, 180-degree field of view, auto zoom and tracking on moving objects, and color night vision; and Arlo Floodlight Camera, a wire-free floodlight camera.