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 changing hands.

Analyst Upgrades and Downgrades

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

Arlo Technologies Price Performance

The business’s 50-day moving average price is $12.92 and its two-hundred day moving average price is $13.38. The company has a market capitalization of $1.41 billion, a price-to-earnings ratio of 47.87 and a beta of 1.60.

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, beating the consensus estimate of $0.20 by $0.08. The business had revenue of $155.94 million during the quarter, compared to analysts’ expectations of $148.94 million. Arlo Technologies had a return on equity of 17.29% and a net margin of 5.20%. The firm’s revenue for the quarter was up 20.5% compared to the same quarter last year. During the same period in the previous year, the company posted $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. As a group, research analysts predict that Arlo Technologies, Inc. will post 0.12 EPS for the current year.

Insiders Place Their Bets

In other Arlo Technologies news, CFO Kurtis Binder sold 83,211 shares of Arlo Technologies stock in a transaction on Monday, September 28th. The stock was sold at an average price of $12.44, for a total value 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 $4,464,703.56. The trade was a 18.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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. Over the last ninety days, insiders sold 137,837 shares of company stock valued at $1,836,543. 2.90% of the stock is owned by insiders.

Institutional Trading of Arlo Technologies

Large investors have recently modified their holdings of the stock. Continuum Advisory LLC bought a new position in shares of Arlo Technologies in the second quarter worth $28,000. Integrated Wealth Concepts LLC bought a new stake in Arlo Technologies during the second quarter worth about $29,000. Sterling Capital Management LLC lifted its position in Arlo Technologies by 848.3% during the third quarter. Sterling Capital Management LLC now owns 3,613 shares of the company’s stock worth $45,000 after purchasing an additional 3,232 shares during the period. Quantbot Technologies LP bought a new stake in Arlo Technologies during the second quarter worth about $88,000. Finally, GAMMA Investing LLC grew its stake in Arlo Technologies by 15.7% during the third quarter. GAMMA Investing LLC now owns 6,647 shares of the company’s stock worth $82,000 after buying an additional 904 shares in the last quarter. 83.18% of the stock is owned by institutional investors and hedge funds.

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.