Arlo Technologies, Inc. (ARLO) Showing Air Of Cautious Optimism?

On 14 March, shares of Arlo Technologies, Inc. (NYSE:ARLO) closed lower after a volatile session. The shares dropped -0.03 points or -0.7 percent at $4.28 with a light trade volume of 2.111 million shares. After opening the session at $4.29, the shares went as high as $4.3 and as low as $4.03, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $318 million and now has 74.27 million shares outstanding. Arlo Technologies, Inc. (ARLO) stock has gained 16.3 percent of market value in 21 trading days.

ARLO stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.02 a share in the trailing twelve months. The stock’s value has fallen -57.11 percent year to date (YTD) against a decline of 0 percent in 12 month’s time. The company’s shares still trade -81.99 percent away from its 1-year high of $23.77 and 27 percent up from 52-week low of $3.37. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Arlo Technologies, Inc. (ARLO) will probably climb 63.55 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $8-month high price target. This represents a whopping 86.92 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $7.5, which represents a return potential of 75.23 percent when compared to the closing price of the stock of $4.28 on Thursday, March 14. The lowest price target for the stock is $5 — slightly more than 16.82 percent from ARLO’s current share price.

History has shown that shares in Arlo Technologies, Inc. have gone down on 1 different earnings reaction days and are predicted to add 0.3 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $4.11. Below this, the next support is placed in the zone of $3.93. Till the time, the ARLO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 40.54 on daily chart, which may remain a cause for concern. If the price breaks below $3.93 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $4.38 mark may result into a pull-back move towards $4.47 level.

Further, it is sporting a 0.68 on the Price-to-Sales ratio. Compare this with the industry average P/S of 9372.17. 19.8 percent is the gross profit margin for Arlo Technologies, Inc. and operating margin sits at -16.1 percent. Along with this, the net profit margin is -16.2 percent.