Arlo Technologies, Inc. (NYSE:ARLO) has been making waves in the stock market as of late, with unusual options trading and insider selling grabbing the attention of investors and analysts alike. On Friday, June 2, stock traders purchased an unusually large number of call options on the stock – a staggering 2,747 in total. This is a significant increase of approximately 332% compared to the typical volume of 636 call options.
In addition to this flurry of activity in the options market, General Counsel Brian Busse sold 37,085 shares of ARLO stock on Friday, May 19th at an average price of $9.78 per share. This resulted in a total transaction value of $362,691.30. Following this sale, Busse now holds 696,816 shares in Arlo Technologies – valued at $6,814,860.48.
This recent insider selling has raised some eyebrows among investors and analysts who are closely monitoring Arlo Technologies’ progress in the market. The company had lifted its price target from $8 to $11 by BWS Financial recently whereas Lake Street Capital lifted it from $10 to $12.
Arlo Technologies last announced its earnings results on Tuesday, March 7th when they beat analyst estimates by posting ($0.23) earnings per share (EPS) for the quarter instead of ($0.25). It seems that despite this positive performance report and analyst upgrades from Lake Street Capital and BWS Financial along with bullish investor sentiments reflected through Call Option buys which suggest buying opportunities because these trades are typically made by investors who believe that a particular stock will rise in value over time; there might be lurking skepticism as well surrounding these sell-offs by insiders.
It is important to note that insider selling does not always indicate a lack of confidence in the company’s prospects or imminent negative news about its operations or product line-up; however smart money investors keep an eye out for insider behavior in order to understand how a company’s stock might perform in the future. As things stand today, Wall Street analysts forecast -0.34 EPS for the current fiscal year from the company. Investors, as always, are closely watching to see what will happen next with Arlo Technologies as we move further into June 4th, 2023 and beyond.
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Arlo Technologies: A Growing Interest from Institutional Investors
Arlo Technologies is a company that has been garnering interest from institutional investors lately. In recent reports, it was revealed that several major financial entities have made significant changes to their positions in the company. This comes as no surprise considering the impressive growth and performance of Arlo Technologies over the past year.
One of the companies that have grown its stake in Arlo Technologies is FMR LLC. The investment firm grew its interest by 83.7% during Q1, now owning 4,979 shares worth $30,000 altogether after purchasing an additional 2,269 shares during the last quarter. It appears that other companies are following suit as Advisor Group Holdings Inc. also increased its stake by a whopping 733.8% in Q4, now owning 9,297 shares worth $32,000 after buying an additional 8,182 shares.
PNC Financial Services Group Inc., on the other hand, grew its stake in Arlo Technologies by 82.8% in Q4 and currently owns 9,704 shares worth $34,000 after purchasing an additional 4,395 shares from last quarter’s ending.
Interestingly enough LPL Financial LLC bought new shares of Arlo Technologies worth $47,000 in Q4 while Continuum Advisory LLC acquired new positions valued at $50K earlier this year solidifying investors’ unwavering confidence to capitalise on the rising trend of tech equipment market stocks.
As of June 4th this year, around seventy-two percent (72.87%) of all outstanding stocks for Arlo are owned by these institutional investors; thus indicating a stable financial performance for the company with hopes of sustained expansion very likely.
Shares of ARLO traded up $0.40 during trading on Friday reaching a peak price of $10 which had a trading volume of about nine hundred thousand (855656) trades compared to an average volume of about one million one hundred thousand (1111984) trades. This might be attributed to leading indicators such as a fifty-day moving average of $7.26 and a two-hundred day moving average of $5.16.
With a company market cap of an impressive $918.40 million, the future looks bright for Arlo Technologies which has delivered positive earnings with a price-to-earnings ratio currently sitting at -14.17 and showing room for potential growth. It has also received favourable commentary from financial analysts citing its dynamic innovation in developing new quality products that delight consumers making it easy for investors to see the value they can invest in this fast-growing company. With remarkable continued success in their industry amid this pandemic year, we stand assured of the future prospect of Arlo Technologies stock value dividends in the long term.
