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Matthew Blake McRae, CEO of Arlo Technologies Inc. (NYSE:ARLO), has recently sold a significant portion of the company’s common stock, according to a filing with the Securities and Exchange Commission. The stock, currently trading at $11.18 with a market capitalization of $1.12 billion, is trading above its InvestingPro Fair Value despite showing strong return potential according to analyst targets ranging from $15 to $24. The transactions, which took place over two consecutive days, involved the sale of 133,022 shares, totaling approximately $1,506,249.
On February 5, McRae sold 59,316 shares at an average price of $11.4323, with the sale prices ranging between $11.135 and $11.70. The following day, February 6, he sold an additional 73,706 shares at an average price of $11.2356, with the prices ranging narrowly between $11.2356 and $11.2357.
The sales were made to satisfy estimated tax withholding obligations upon the settlement of Restricted Stock Units. Following these transactions, McRae retains direct ownership of 3,054,990 shares in the company. While currently unprofitable, InvestingPro analysts expect the company to achieve profitability this year, with projected earnings per share of $0.43 for 2024. Get deeper insights into Arlo’s financial health and growth prospects with InvestingPro’s comprehensive research report, available along with 7 additional ProTips.
In other recent news, Arlo Technologies reported a 6% year-over-year revenue increase in its third quarter of 2024, reaching $137.7 million. This growth was largely driven by a significant surge in the services business, which saw a 70% increase in paid subscribers and a record service revenue of $62 million. The company also announced future plans, including a $50 million share buyback program and the development of Arlo Secure 6.0, set to launch in 2025.
Despite a decline in the U.S. market, international revenue constituted 48% of the total revenue, largely due to the successful partnership with Verisure. The company also plans to expand its partnership with Allstate (NYSE:ALL) and anticipates adding 170,000 to 190,000 new paid subscribers in the fourth quarter. Arlo Technologies’ earnings per share stood at $0.11, while the non-GAAP gross profit approached $50 million.
These developments are part of Arlo’s recent strategies to boost sales and subscriptions, including aggressive pricing and promotions for the upcoming holiday season. However, the company is also anticipating a potential destocking situation in North American retail and a decline in average selling prices. Despite these challenges, Arlo is optimistic about exceeding the full-year services revenue guidance of $240 million and continues to invest in new product development.
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