Arlo Technologies , Inc. (NYSE:ARLO) director Amy M. Rothstein has sold 15,000 shares of the company's common stock, fetching a total of $222,450. The transaction took place on July 9, 2024, according to the latest Form 4 filing with the Securities and Exchange Commission.
The shares were sold at a weighted average price of $14.83, with a reported range of $14.50 to $15.00 per share. This sale was conducted under a Rule 10b5-1 trading plan, which Rothstein had adopted on March 14, 2024. Such plans allow company insiders to set up a predetermined schedule for selling shares at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading.
Following the transaction, Rothstein's ownership in the company stands at 75,032 shares of common stock. The recent sale by a member of Arlo Technologies' board could be of interest to investors, as insider transactions are often scrutinized for indications of the company's prospects.
Arlo Technologies, headquartered in Carlsbad, California, specializes in household audio and video equipment, and is known for its smart connected devices such as security cameras and lighting.
Investors and stakeholders can request full details of the transaction, including the number of shares sold at each specific price point, if needed. The transaction is a routine disclosure, and the Form 4 filing provides transparency into the trading activities of the company's insiders.
"In other recent news, Arlo Technologies has reported strong growth in its first-quarter financial results for 2024, with a 58% year-over-year increase in paid accounts, reaching 3.2 million, and a 24% growth in annual recurring revenue, totaling $227 million. The company also saw a rise of 12% year-over-year in total revenue, amounting to $124.2 million, largely due to pricing increases and growth in paid accounts. In addition to financial growth, Arlo announced a strategic partnership with Allstate (NYSE:ALL) to provide enhanced three-year protection plans for products purchased through Arlo's website. This collaboration aims to offer a seamless customer experience by leveraging the technological and service strengths of both companies. Furthermore, Arlo's AI-powered subscription service reached a milestone with over 4 million paid accounts, demonstrating robust customer adoption and growth in the service business. The company also hinted at upcoming enhancements to its service plan that will integrate advanced AI features, expected to roll out later this year. Looking ahead, Arlo has provided estimates for the second quarter, projecting revenue to be between $120 million and $130 million. By 2030, the company aims to reach 10 million paid accounts, $700 million in annual recurring revenue, and over 25% non-GAAP operating margin."
InvestingPro Insights
Amidst the recent insider selling at Arlo Technologies, Inc. (NYSE:ARLO), investors may seek additional perspectives to gauge the company's financial health and future outlook. According to InvestingPro data, Arlo Technologies currently holds a market capitalization of approximately $1.59 billion, reflecting investor sentiment and market recognition of the company's value. Despite a challenging P/E ratio, which stands at -89.62, the company has shown a promising revenue growth rate of 5.81% over the last twelve months as of Q1 2024.
InvestingPro Tips suggest that Arlo Technologies has more cash than debt on its balance sheet, providing financial flexibility and potentially reducing risk for investors. Additionally, the company's net income is expected to grow this year, which could signal improving profitability and a positive trajectory for shareholders. However, it's worth noting that 2 analysts have revised their earnings estimates downwards for the upcoming period, which may warrant attention.
For those interested in further analysis, there are 14 additional InvestingPro Tips available for Arlo Technologies, offering in-depth insights for informed investment decisions. To explore these tips, visit https://www.investing.com/pro/ARLO. Moreover, readers can take advantage of a special offer using coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, further enhancing their investment research capabilities.
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