Arlo Technologies (NYSE:ARLO) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Arlo Technologies, Inc. (NYSE:ARLO) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $10.64, but opened at $11.68. Arlo Technologies shares last traded at $11.92, with a volume of 234,766 shares trading hands.

The company reported $0.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.12 by $0.03. Arlo Technologies had a negative return on equity of 24.14% and a negative net margin of 4.76%. The business had revenue of $119.07 million for the quarter, compared to the consensus estimate of $118.35 million. During the same quarter in the previous year, the company posted $0.09 EPS. The company’s revenue was down 4.1% compared to the same quarter last year.

Analyst Ratings Changes

ARLO has been the subject of a number of analyst reports. Craig Hallum raised their price target on Arlo Technologies from $15.00 to $17.00 and gave the stock a “buy” rating in a research report on Friday, February 28th. BWS Financial restated a “buy” rating and set a $24.00 price target on shares of Arlo Technologies in a research note on Thursday, April 24th. Finally, Roth Capital set a $22.00 price objective on shares of Arlo Technologies in a research note on Friday, February 28th.

Insiders Place Their Bets

In other news, CEO Matthew Blake Mcrae sold 91,999 shares of Arlo Technologies stock in a transaction that occurred on Thursday, May 8th. The shares were sold at an average price of $10.37, for a total value of $954,029.63. Following the transaction, the chief executive officer now owns 2,660,745 shares of the company’s stock, valued at $27,591,925.65. The trade was a 3.34 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Brian Busse sold 6,593 shares of the business’s stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $11.50, for a total transaction of $75,819.50. Following the transaction, the general counsel now owns 612,743 shares of the company’s stock, valued at approximately $7,046,544.50. This trade represents a 1.06 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,164,731 shares of company stock worth $12,816,439 over the last 90 days. Company insiders own 5.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in ARLO. Smartleaf Asset Management LLC boosted its holdings in Arlo Technologies by 104.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,331 shares of the company’s stock worth $26,000 after acquiring an additional 1,191 shares in the last quarter. KBC Group NV raised its position in shares of Arlo Technologies by 106.8% in the 4th quarter. KBC Group NV now owns 6,167 shares of the company’s stock valued at $69,000 after purchasing an additional 3,185 shares during the last quarter. GAMMA Investing LLC boosted its stake in Arlo Technologies by 40.9% in the 1st quarter. GAMMA Investing LLC now owns 7,212 shares of the company’s stock worth $71,000 after purchasing an additional 2,095 shares in the last quarter. Ieq Capital LLC acquired a new position in Arlo Technologies during the 4th quarter valued at approximately $121,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in shares of Arlo Technologies in the first quarter worth $123,000. 83.18% of the stock is currently owned by hedge funds and other institutional investors.

Arlo Technologies Stock Up 16.8 %

The firm has a market capitalization of $1.29 billion, a price-to-earnings ratio of -49.72 and a beta of 1.81. The company’s 50 day moving average price is $10.03 and its 200 day moving average price is $11.12.

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.