Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Matthew Blake McRae, CEO of Arlo Technologies , Inc. (NYSE:ARLO), recently executed a significant stock sale, according to a recent SEC filing. On March 11, McRae sold 59,226 shares of common stock, generating approximately $656,597. The shares were sold at an average price of $11.0863, with the sale prices ranging from $10.88 to $11.35. According to InvestingPro data, while the stock shows volatile price movements, analysts maintain a bullish outlook with price targets ranging from $15 to $24.
Following this transaction, McRae retains ownership of 2,427,452 shares in the company. The sale was conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks, thus providing some protection against accusations of insider trading. Notably, InvestingPro analysis reveals that management has been actively buying back shares, and the company holds more cash than debt on its balance sheet. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report for ARLO.
In other recent news, Arlo Technologies has reported its fourth quarter and full year 2024 results, highlighting a slight beat in Q4 revenue at $121.6 million, compared to the $121.2 million estimate, while meeting the adjusted EPS expectation of 10 cents. Service revenue, which constituted 53% of total revenues, rose 15% year over year to $64.1 million, and the company projects service revenue to exceed $300 million in 2025, compared to $243 million in 2024. The company’s annual recurring revenue (ARR) reached $257.3 million, marking a 22.5% year-over-year growth. Despite a minor miss on the EPS forecast, reporting 10 cents against an expected 11 cents, Arlo Technologies’ stock increased, driven by strong service revenue growth and strategic product innovations. Analysts from Lake Street emphasized the company’s growth potential, maintaining a price target of $17 based on a 5.0x service revenue multiple. Arlo Technologies also announced plans for a significant product launch for the 2025 holiday season, expected to further drive growth. The company is optimistic about its 2025 outlook, projecting revenue between $510 million and $540 million, with a focus on achieving a service revenue target of over $300 million.
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