Insider Trading Analysis Report for Arlo Technologies (ARLO)

I will now provide you with an in-depth analysis report on the share reduction by the CFO of Arlo Technologies (ARLO).

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Kurtis Joseph Binder, Chief Financial Officer (CFO) of Arlo Technologies, sold 55,043 shares of the company on January 9, 2026, with a total value of approximately $753,500 (average price of $13.69)[1]. This transaction occurred at a critical juncture—when the company’s stock price had dropped about 32% from its 2025 high of $19.94 to the current level, and multiple executives were also reducing their shareholdings[2]. This report will conduct an in-depth analysis of the impact of this insider trading on investor confidence and valuation from multiple dimensions.

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Item	Details
Person	Kurtis Joseph Binder (Chief Financial Officer)
Transaction Date	January 9, 2026
Transaction Type	Direct Sale
Number of Shares Sold	55,043 shares
Average Price	$13.6893
Transaction Amount	Approximately $753,500
Shares Held After Sale	416,013 shares (as of October 15, 2025)[1]

CFO Binder has conducted

over the past 18 months, with a net sale of 1,088,361 shares[1]. This continuous share reduction behavior warrants attention. Looking at the transaction timeline:

• July 1, 2025: Sold approximately 92,000 shares at $17.17
• September 2, 2025: Sold approximately 125,000 shares at $17.71
• September 30, 2025: Sold approximately 216,000 shares at $16.89-17.04
• October 15, 2025: Sold approximately 52,000 shares at $17.82
• January 9, 2026: Sold approximately 55,000 shares at $13.69

Notably, the timing of the CFO’s share sales exhibits the characteristic of

, which indicates that his share sale decision may be more based on personal financial planning rather than mere stock price prediction.

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In addition to the CFO, other core executives of Arlo also conducted share sales during the same period:

Executive	Position	Date	Average Price	Number of Shares	Amount
Matthew McRae	CEO	2026-01-09	$13.69	90,089	$1,233,318
Matthew McRae	CEO	2025-12-01	$14.28	257,242	$3,672,876
Matthew McRae	CEO	2025-11-04	$17.86	18,645	$332,999
Brian Busse	General Counsel	2025-11-14	$14.37	149,000+	$2,149,140
Prashant K. Aggarwal	Director	2025-08-14	$16.61	60,000+	$1,009,836

:

• CEO Matthew McRae conducted a large-scale share sale of approximately 860,000-880,000 shares (at prices of $16.71-17.14) on June 24, 2025, cashing out over
  $20 million
  [2]
• Insiders net sold
  477,076 shares
  over the past 3 months, with zero purchases during this period[1]
• Cumulative net sales of
  5,920,220 shares
  over the past 18 months, with only 8,842 shares purchased[1]

The share sale by CEO McRae in January 2026 has a special background:

1. PSU (Performance Stock Unit) Settlement
   : On January 8, 2026, McRae settled
   166,666 Performance Stock Units (PSUs)
2. Tax Withholding Obligation
   : The sale of 90,089 shares the next day was to pay the estimated taxes arising from the PSU vesting[3]
3. Shares Held After Sale
   : Still directly holds 1,018,163 shares of the company, valued at approximately
   $14 million
   [3]

This type of

(to meet tax obligations rather than active share reduction) is fundamentally different from pure profit-taking, and investors should treat them differently.

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Summary of Insider Transactions Over the Past 18 Months:
├── Sales: 5,929,062 shares
├── Purchases: 8,842 shares
└── Net Sales: 5,920,220 shares

This highly unbalanced insider trading pattern is generally regarded as a

, which may suggest that management believes the current stock price has fully reflected or overvalued the company’s value.

The CEO’s share sales in June 2025 (in the $16-17 range) and December 2025 (at $14.28) coincided with the stock price pulling back from its high of $19.94. The CFO’s recent share sale (January 9) occurred when the stock price was approaching the support level of $13.33.

CFO Binder completed 11 transactions of continuous share sales over 18 months, indicating that he may have a systematic share sale plan rather than a temporary decision.

The 90,089 shares sold by the CEO on January 9 to pay taxes are an

and should not be interpreted as a bearish signal[3]. Such transactions are very common when executives receive large equity incentives.

Despite conducting share sales, executives still maintain significant shareholdings:

• CEO McRae
  : Still holds over 1 million shares, valued at approximately $14 million
• CFO Binder
  : Still holds approximately 416,000 shares, valued at approximately $5.6 million

This indicates that management is still deeply aligned with the company’s interests.

Equity incentives account for a relatively high proportion of Arlo executives’ compensation, and selling some shares as equity vests is a regular financial planning behavior.

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Metric	Q3 FY2025	Q3 FY2024	Change
Revenue	$139.53M	$137.67M	+1.4%
EPS	$0.16	$(0.04)	Turned from Loss to Profit
Net Profit	$6.87M	$(4.44M)	Turned from Loss to Profit
Gross Margin from Subscription Services	84.5%	76.7%	+7.8 percentage points
Total Gross Margin	40.5%	35.2%	+5.3 percentage points

:

• The company has turned from operating losses to sustained profitability
• The gross margin of the subscription business (accounting for 57.3%) is as high as 84.5%[4]
• Annual Recurring Revenue (ARR) increased by 33.8% to $323.2 million
• Paid accounts increased by 27.4% to 5.4 million

Valuation Metric	Value	Industry Comparison
P/E (TTM)	332.15x	Significantly High
P/B	11.05x	High
P/S	2.75x	Medium
Market Cap	$1.40B	-

:

• The extremely high P/E ratio (332x) reflects the market’s premium for the company’s high growth expectations
• The current stock price has dropped about 32% from the 52-week high ($19.94)
• The consensus analyst target price of $17.00 implies
  25.2% upside potential
  [5]
• Price Range: $14.00 (8 institutions) - $22.00

On January 5, 2026, Arlo announced the expansion of its partnership with Samsung SmartThings, deeply integrating the Arlo smart security platform into the SmartThings ecosystem[6]. This strategic partnership may bring significant user growth opportunities for the company.

The proportion of subscription and service revenue increased from 45% in 2024 to 57.3% in 2025, indicating that the company is successfully transforming from a hardware sales model to a high-margin recurring revenue model[4].

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ARLO Daily Technical Analysis (as of January 9, 2026)
├── Current Price: $13.58
├── Support Level: $13.33
├── Resistance Level: $13.84
├── 52-Week Range: $7.84 - $19.94
├── Beta: 1.65 (Higher Volatility Than the Market)
└── Trend Judgment: Sideways Consolidation (No Clear Direction)

Indicator	Status	Signal Interpretation
MACD	No Crossover	Slightly Bullish
KDJ	K:51.7, D:53.0	Neutral to Bearish
RSI	Normal Range	No Overbought/Oversold

Technical indicators show that the stock price is in a

, with no clear direction[7].

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Based on the Arlo case, the following is the core framework for interpreting insider trading:

Evaluation Dimension	Current Status	Impact on Investors
Transaction Direction	Dominantly Net Sales	Slightly Negative
Transaction Frequency	High-Frequency Continuous Share Sales	Motives Warrant Attention
Shareholding Ratio	Executives Still Hold Large Shareholdings	Slightly Positive
Transaction Type	Includes Passive Sales (Tax-Related)	Needs Differentiation
Time Window	From Stock Price High to Low	Slightly Negative
Background Factors	PSU Settlement, Compensation Structure	Explainable

Situation	Recommendation
Pure Net Sales + Executive Share Reduction + Deteriorating Fundamentals	Caution/Reduce Holdings
Net Sales + Executive Share Reduction + Sound Fundamentals	Observe/Hold
Passive Sales (Tax-Related) + Sound Fundamentals	Neutral/Monitor
Net Purchases + Sound Fundamentals	Actively Monitor

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1. Short-Term Sentiment Impact
   : The continuous share sales by the CFO and multiple executives may have a negative impact on investor sentiment in the short term, especially against the backdrop of the stock price having dropped 32% from its high.

2. Mid-to-Long-Term Fundamentals
   : The company’s fundamentals are improving—turning profitable, rapid growth in the subscription business, expanded partnerships with giants like Samsung, these positive factors should not be completely overshadowed by insider trading.

3. Distinguish Transaction Nature
   : The passive sale by the CEO due to PSU tax settlement is fundamentally different from active profit-taking, and investors should treat them differently.

4. Overall Signal
   : The highly unbalanced insider trading over the past 18 months (5.92 million shares net sold vs. 8,842 shares purchased) does warrant caution, but it needs to be considered in combination with the huge shareholdings still held by executives (approximately $14 million for the CEO).

• Valuation Risk
  : The 332x P/E valuation implies extremely high growth expectations
• Competition Risk
  : The smart home security market is highly competitive (Ring, Nest, TP-Link, etc.)
• Macroeconomic Risk
  : Tariff policies may affect the cost structure
• Execution Risk
  : The sustainability of subscription growth is critical

Investor Type	Recommendation
Existing Holders	Monitor the Q4 2025 earnings report (February 26, 2026) and 2026 business guidance to assess whether share sales are related to deteriorating fundamentals
Potential Investors	Consider entering after insider transactions stabilize; the current valuation already partially reflects market caution
Short-Term Traders	Monitor the breakout direction of the $13.33 support level and $13.84 resistance level

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[1] GuruFocus - Kurtis Joseph Binder Net Worth (2026) (https://www.gurufocus.com/insider/36346/kurtis-joseph-binder)

[2] Yahoo Finance - ARLO Insider Transactions (https://finance.yahoo.com/quote/ARLO/insider-transactions/)

[3] Stock Titan - Arlo CEO reports PSU settlement and tax share sale (https://www.stocktitan.net/sec-filings/ARLO/form-4-arlo-technologies-inc-insider-trading-activity-7646d7627d45.html)

[4] SEC EDGAR - ARLO 10-Q Filing Q3 FY2025 (https://www.sec.gov/Archives/edgar/data/1736946/000173694625000042/arlo-20250928.htm)

[5] Jinling API Company Profile Data

[6] PR Newswire - ARLO AND SAMSUNG EXTEND PARTNERSHIP (https://www.prnewswire.com/news-releases/arlo-and-samsung-extend-partnership-to-integrate-new-smart-security-capabilities-into-smartthings-platform-302652275.html)

[7] Jinling API Technical Analysis Data

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Report Generation Date: January 10, 2026
Data Sources: Jinling API, SEC EDGAR, Yahoo Finance, GuruFocus, etc.