How To Play The 3.61% Plunge In Arlo Technologies, Inc. (ARLO)

Arlo Technologies, Inc. (NYSE:ARLO) is trending higher in the market today as the company shares are trading 3.61% or 0.135 points down from last closing price of $3.74, reaching $3.605 at last check. Any clue why there is so much of action in the ARLO stock? The share price has dropped in 1 of the last 5 days and is down -0.27% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -12,523 shares, and in total 676777 shares valued at $2.44 million were seen changing hands compared with 689300 shares valued at $2.578 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the ARLO stock is near its bottom.

Arlo Technologies, Inc. (ARLO) shares have notched a 3-month decline of about -0.27%, but has still tumbled -62.53% year to date. By comparison, the stock sank -79.97% over the past 12 months, while it jumped 21.82% over the 1 month. The company’s market cap is around $279.49M, with its short interest ratio standing at 7.17%.

In the current trading session for ARLO, the stock witnessed two major price actions, it rose to a high of $3.775 and was down as much as $3.6 at one point. The high recorded is very low when compared to their 52-week high which is $2.71. The 52-week high is now at -81.88 distance from current price. Their recent low of $19.88 represents a 32.92% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for ARLO is $6.5, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Arlo Technologies, Inc. earned $-1.71 per share in the trailing 12 months and has a P/E ratio of -2.11. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 11.77 and lower compared to the sector’s average of 27.18. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. ARLO also has P/S multiple of 0.68. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.11x.

ARLO‘s last price was down -29.37% as compared to the average trading price of 50 days recorded at $5.1 while enlarging the period to 200 trading days, the average closing price was $3.63. At present, there are 74.73 million in the total number of common shares owned by the public and among those 73.17 million shares have been available to trade. The percentage of shares being held by the company management was 0.9% while institutions stake was 88.2%. The company has generated negative returns on equity over the last 12 months (-50.4%). It managed to keep its gross profit margin at 11.7% over the past 12 months.

When assessing the full upside of the ARLO stock, there is another set of technicals that should be looked into and considered. Its 15.93% gain from moving average of $3.11 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Arlo Technologies, Inc. — 1 analysts rate the stock as a buy with another 0 rating it strong buy. There are 1 analysts who maintain a hold rating for the stock, with 1 giving it a sell rating. Analysts arrived at a 12-month price target of $6.1667 on shares of Arlo Technologies, Inc. (NYSE:ARLO), which corresponds to 70.82% upside potential than its current market price of $3.605 and implies potential despite the recent drop in the price. However, their current target price has fallen from $14.5 a month ago and is down handily from the consensus target of $18.6 a quarter ago.

Let’s briefly check the hedge fund interest towards ARLO stock. Primecap Management Co. CA added position in the company after it grew 1.1% or 5,049,891 shares of its common stock. The hedge fund now owns 5,105,440 shares worth $18,405,111, SEC documents show. UBS Asset Management Americas Inc. shored up assets in the stock as 46570.29 shares have been purchased, increasing its stake by 38% to 64,267 shares which are currently valued at $231,683. In addition, D. E. Shaw & Co. Inc. recently reported that it now owns 572,953 shares making a total of $2,065,496 based on the recent price. This refelects a change of 147.2% in their ownership.