Arlo Technologies , Inc. (NYSE:ARLO) Director Amy M. Rothstein has sold a portion of her holdings in the company, according to the latest SEC filings. On June 13, 2024, Rothstein sold 25,000 shares of Arlo Technologies at an average price of $13.373 per share, totaling approximately $334,325.
The sale was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined trading schedule. The trading plan was adopted by Rothstein on March 14, 2024, providing a systematic approach to the sale of shares that is intended to avoid concerns about insiders trading on nonpublic information.
Investors tracking insider transactions might note that the price range for Rothstein's sale was between $13.02 and $13.67 per share. The weighted average price for the transaction was reported at $13.373. Following the sale, Rothstein still owns a total of 76,271 shares of Arlo Technologies, indicating continued vested interest in the company's performance.
Arlo Technologies, based in Carlsbad, California, specializes in household audio and video equipment, a sector that has seen significant growth and innovation in recent years. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol ARLO.
As with all insider transactions, the sale reported by Director Rothstein provides investors with information about executive confidence and financial moves within the company. However, it should be noted that insider selling can occur for various reasons and may not necessarily reflect a negative outlook on the company's future.
In other recent news, Arlo Technologies has reported impressive Q1 results for 2024, marking significant strides towards the company's long-term growth objectives. The company experienced a 58% year-over-year increase in paid accounts, reaching 3.2 million, and a 24% growth in annual recurring revenue, which amounted to $227 million. Additionally, service revenue accounted for 46% of total revenue, driven by growth in paid accounts and pricing increases.
Arlo Technologies' total revenue was up by 12% year-over-year to $124.2 million, with a non-GAAP EPS of $0.09. The company also renewed its strategic partnership with Verisure for another five years. Looking ahead, Arlo anticipates second-quarter revenue to fall between $120 million and $130 million, with non-GAAP net income per diluted share ranging from $0.06 to $0.12.
Despite projections of a muted macroeconomic environment in 2024, Arlo's long-range plan is to target 10 million paid accounts, $700 million in annual recurring revenue, and over 25% non-GAAP operating margin by 2030. These recent developments underscore Arlo's commitment to expanding its user base and enhancing service offerings.
InvestingPro Insights
Arlo Technologies, Inc. (NYSE:ARLO) is currently navigating the financial markets with a mixture of challenges and growth opportunities. A glance at the company's financial health through InvestingPro data reveals a market capitalization of approximately $1.26 billion, indicating a significant presence in the household audio and video equipment sector. While the company's P/E ratio stands at a negative 69.32, reflecting its current lack of profitability, analysts remain optimistic about the company's future. In fact, Arlo Technologies has been trading at a high Price / Book multiple of 12.56, which could suggest investor confidence in its asset value and growth potential.
InvestingPro Tips highlight that Arlo Technologies holds more cash than debt on its balance sheet, providing a solid foundation for future growth and operational flexibility. Additionally, the company is expected to become profitable this year, according to analyst predictions. This is particularly noteworthy as the company has not been profitable over the last twelve months. Moreover, Arlo's stock has experienced a large price uptick over the last six months, with a 26.18% total return, underscoring a robust performance in the short term. These insights, coupled with the fact that Arlo Technologies does not pay a dividend, may influence investors who prioritize growth over income.
For those interested in a deeper dive into Arlo Technologies' financials and future outlook, InvestingPro offers additional insights and metrics. There are currently 9 more InvestingPro Tips available for ARLO, which can be accessed by visiting: https://www.investing.com/pro/ARLO. Readers looking to take advantage of these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As investors consider the implications of insider sales such as that of Director Amy M. Rothstein, these InvestingPro Insights can provide a broader context to understand the company’s financial position and potential for future profitability. It's important for investors to consider both the insider trading activity and the comprehensive financial data when evaluating their investment decisions in Arlo Technologies.
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