Arlo Technologies (NYSE:ARLO) Shares Decline 8.7% - What's Next?

On Tuesday, shares of Arlo Technologies, Inc. (NYSE:ARLO) saw a significant drop of 8.7%. The stock traded as low as $11.08 and was last recorded at $11.10. In total, 836,364 shares changed hands, reflecting no change from the typical session volume of 833,604 shares. The previous closing price was $12.15.

Wall Street Analysts Forecast Growth

• Arlo Technologies Stock Represents a Turnaround Opportunity

Recent evaluations from several equity research analysts indicate a positive outlook for Arlo Technologies despite the decline. BWS Financial reaffirmed a "buy" rating with a target price of $24.00 for the company’s shares in a report released on Friday. Additionally, Craig Hallum raised their target price from $15.00 to $17.00 and also rated the stock as a "buy" in a recent research assessment.

Current Stock Performance

As of now, Arlo Technologies maintains a market capitalization of approximately $1.19 billion, reflecting a P/E ratio of -47.54. The stock exhibits a beta of 1.77. Currently, the company’s 50-day and 200-day moving averages stand at $11.65 and $11.68, respectively.

Insider Trading Activity

In related news, CEO Matthew Blake Mcrae sold 59,316 shares of the company on February 5th for an average price of $11.43, totaling approximately $677,981.88. Post-transaction, Mcrae holds about 3,128,696 shares valued at around $35,760,995.28, reflecting a 1.86% decrease in ownership. This transaction has been documented in a filing with the SEC. Furthermore, General Counsel Brian Busse also sold 9,007 shares on January 29th at an average price of $11.66 for a total of $105,021.62, which resulted in a 1.47% decrease in his ownership, with the current value of his holdings at approximately $7,024,660.28. In total, insiders sold 144,333 shares in the last quarter for $1,656,923 worth of stock. Insiders own 3.80% of Arlo Technologies shares.

Institutional Investors' Activity

There have been various adjustments to stake holdings by institutional investors and hedge funds recently. Smartleaf Asset Management LLC enhanced its stake in Arlo Technologies by 104.5% during the fourth quarter, now possessing 2,331 shares valued at $26,000 after acquiring an additional 1,191 shares. Quest Partners LLC similarly increased its stake by 283.0% in the third quarter, owning 2,547 shares now valued at $31,000. KBC Group NV's stake also rose by 106.8% in the same period, owning 6,167 shares valued at $69,000. Other investors like Ieq Capital LLC acquired new positions in Arlo Technologies valued at about $121,000. At present, institutional investors and hedge funds collectively hold 83.18% of the company’s stock.

About Arlo Technologies

Arlo Technologies operates a cloud-based platform alongside its subsidiaries across various global regions, including the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Their product offerings range from Arlo Essential Cameras and Doorbells to innovative systems like Arlo Pro 5S and Arlo Ultra 2, which provide enhanced home security features.

Investment Consideration

Before making any investment decisions regarding Arlo Technologies, it is essential to note that while the company has a current Buy rating from analysts, there are other stocks that top-rated analysts consider better investment opportunities.

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