Arlo Technologies (ARLO) Insider Stock Sale Analysis Report

Based on comprehensively collected data, I will provide you with an in-depth analysis report on Arlo Technologies’ insider stock sales.

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According to records from the U.S. Securities and Exchange Commission (SEC) Form 4 filings, Arlo Technologies Chief Executive Officer Matthew Blake McRae conducted the following transactions between

[1][2]:

Transaction Date	Transaction Type	Number of Shares	Transaction Price	Transaction Amount	Remarks
2026-01-08	PSU Settlement	166,666 shares	—	—	Performance Stock Units converted to common stock
2026-01-09	Share Sale	90,089 shares	$13.6893	$1,233,255	To fulfill tax withholding obligations
2026-01-09	CFO Share Sale	55,043 shares	$13.6893	$753,500	Also for tax withholding

also sold 55,043 shares on the same date to fulfill tax withholding requirements for PSU settlement [2].

Notably, these two sales are

: the CEO first settled 166,666 Performance Stock Units (PSUs) into common stock, then sold a portion of the shares to pay federal and state taxes resulting from the PSU settlement. Per SEC filings, this sale of 90,089 shares is explicitly labeled as [1].

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This is not Mr. McRae’s first sale of the company’s shares. Reviewing his historical transaction records, the following pattern can be observed [3]:

, McRae conducted a larger-scale transaction:

• PSU Vesting
  : Converted 1,000,000 Performance Stock Units to an equivalent number of common shares
• Share Sale
  : Sold 332,425 shares at a price range of $17.02 to $18.87, totaling approximately
  $5.7 million

Both transactions were executed in accordance with a

[3]. A Rule 10b5-1 plan allows company insiders to pre-set the terms and timing of stock sales to avoid suspicion of insider trading and ensure transaction compliance.

:

• Total Shares Sold: 422,514 shares
• Total Transaction Amount: $6,933,255
• Current CEO Shareholding: 1,018,163 shares (valued at approximately $13.83 million)
• Remaining PSUs: 333,334 units (maximum potential issuance)

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Based on the nature of this sale,

. The main reasons are as follows:

When PSUs (Performance Stock Units) meet vesting conditions, the company typically automatically withholds a portion of shares to cover the employee’s tax liabilities. Insiders cannot choose to retain these shares and must sell them to fulfill tax obligations. This is a routine compensation vesting procedure, not an active cash-out behavior.

After the sale, Mr. McRae still directly holds of the company, valued at approximately $13.83 million based on the current stock price. In addition, he holds 333,334 PSUs (representing the maximum number of shares available in the future). This significant shareholding level indicates that the CEO is deeply aligned with the company’s interests.

Sales executed under a Rule 10b5-1 trading plan are generally considered more credible, as these plans are set in advance of the transaction rather than being a last-minute decision.

However, investors still need to carefully consider the following factors:

The current stock price of $13.58 has fallen approximately 29% from the August 2025 high of $19.25, and about 32% from the 52-week high of $19.94 [4]. Although this is not a “cash-out at a high level”, selling when the stock price is near its 52-week low (even passively for tax withholding) may trigger market concerns about the company’s prospects.

The company’s current P/E ratio is as high as , and the P/B ratio is [4]. Analysis from InvestingPro indicates that the stock may have exceeded its fair value level [3]. High valuation means the market has extremely high expectations for the company’s future growth, and any signal of underperformance may lead to a stock price correction.

The company’s beta value is , meaning the stock price volatility is significantly higher than the market average [4]. In an environment of increased market uncertainty, this high volatility may amplify the impact of negative sentiment.

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Time Period	Price Change	Assessment
1-Day	-1.88%	Under Pressure
5-Day	-3.89%	Continuing Correction
1-Month	-5.37%	Mid-Term Weakness
3-Month	-21.73%	Significant Decline
1-Year	+18.40%	Long-Term Uptick Remains
3-Year	+255.50%	Long-Term Strength

The current stock price is trading

, and approximately 28% below the 50-day moving average [4]. This indicates that the market has adopted a cautious stance towards the company recently.

Arlo Technologies delivered

[4]:

• Earnings Per Share (EPS)
  : $0.16 (consensus estimate $0.15, 6.67% beat)
• Revenue
  : $139.53 million (consensus estimate $135.57 million, 2.92% beat)

has become the company’s core growth driver, contributing in Q3, accounting for [4]. This business model features high gross margins and recurring revenue characteristics, and is a key pillar of the company’s transformation to software services.

:

• Release Date
  : February 26, 2026 (pre-market)
• Consensus EPS Estimate
  : $0.16

Despite stock price pressure, the company has announced several positive business developments:

: On January 5, 2026, Arlo announced the extension of its partnership with Samsung to integrate its Smart Security SaaS platform into the SmartThings ecosystem [5]. This partnership will significantly expand Arlo’s potential user base and strengthen its competitive position in the smart home security space. Company CEO McRae stated: “We are pleased to continue this partnership and provide next-generation smart home security services to SmartThings users through deeper integration.”

: Management mentioned on the earnings call that the company during the holiday shopping season, particularly after implementing an aggressive pricing strategy [6].

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Rating	Number	Percentage
Buy	8	80%
Hold	2	20%
Sell	0	0%

[4]

Institution	Target Price/Rating	Upside vs. Current Price
Craig Hallum (August 2025)	$22	+62.0%
Craig Hallum (February 2025)	$17	+25.2%
ROTH MKM	$13	-4.3%
Raymond James	Outperform	—
Consensus Target Price	$17.00	+25.2%

The target price range is $13 to $22, indicating

among analysts on the company’s valuation. ROTH MKM’s $13 target price is even below the current price, reflecting concerns about valuation [4].

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Based on the above analysis, investors can understand this insider sale within the following framework:

:

• The sale is mandatory for tax withholding, not an active cash-out
• The CEO still holds shares valued at $13.8 million, with deep alignment of interests
• The company has solid fundamentals with strong growth in its subscription business
• The overall analyst rating is “Buy”, with a consensus target price implying 25% upside from current levels
• Established strategic partnerships with tech giants like Samsung

:

• Elevated valuation levels (P/E 332x)
• Recent weak stock price performance, down over 21% in 3 months
• High beta coefficient increases volatility risk
• Analysts have divergent views on valuation

:

• Avoid panic selling
  . This sale does not change the company’s fundamental outlook, and the CEO’s shareholding level still demonstrates his confidence in the company’s long-term development.
• Monitor the upcoming earnings report
  (February 26, 2026). If the company can maintain its growth momentum and demonstrate the scalability of its subscription business, the current valuation may be supported.
• Monitor subsequent insider transactions
  . If large-scale sales outside the 10b5-1 plan occur, a re-evaluation will be necessary.

:

• The current stock price is near a technical support level (approximately $13.32), but a clearer fundamental catalyst is needed before entering.
• Given the elevated valuation, it is recommended to
  accumulate positions in batches
  or wait for a better entry point.
• Focus on business developments in the first half of 2026, particularly the implementation of the Samsung partnership.

1. Valuation Risk
   : The current P/E ratio exceeds 330x, and any underperformance may lead to a significant valuation correction.
2. Competition Risk
   : The smart home security market is highly competitive; monitor the dynamics of competitors such as Ring, Nest, and TP-Link.
3. Macroeconomic Risk
   : A contraction in consumer spending may impact hardware sales and subscription growth.
4. Execution Risk
   : Whether the Samsung partnership can generate the expected synergies remains to be verified.

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The event of Arlo Technologies CEO McRae selling $1.23 million worth of stock

. According to explicit records in SEC Form 4 filings, this is a , which complies with routine procedures for executive compensation vesting.

A more comprehensive perspective shows that:

• The CEO still holds over 1 million shares of the company, valued at more than $13.8 million
• The company’s subscription business has strong growth, with Q3 results exceeding market expectations
• Strategic partnerships with tech giants like Samsung are deepening
• The analyst consensus rating is “Buy”, with a target price implying 25% upside

However, investors also need to carefully treat the company’s high valuation pressure, recent weak stock price performance, and intense market competition environment. For investors seeking to allocate capital, it is recommended to

, focusing on monitoring the upcoming earnings report and subsequent insider transaction dynamics.

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[1] 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)

[2] TradingView - “Arlo Technologies Executives Sell Shares” (https://www.tradingview.com/news/tradingview:07f19608c2988:0-arlo-technologies-executives-sell-shares/)

[3] Investing.com - “Arlo Technologies CEO Mcrae sells shares worth $5.7 million” (https://www.investing.com/news/insider-trading-news/arlo-technologies-ceo-mcrae-sells-shares-worth-57-million-93CH-4187032)

[4] Jinling AI - Arlo Technologies Company Profile and Real-Time Data

[5] PR Newswire - “Arlo and Samsung Extend Partnership to Integrate New Smart Security Capabilities into SmartThings Platform” (https://www.prnewswire.com/news-releases/arlo-and-samsung-extend-partnership-to-integrate-new-smart-security-capabilities-into-smartthings-platform-302652275.html)

[6] Stock Insights - “Arlo Technologies Inc Earnings Call Transcript FY24 Q4” (https://www.stockinsights.ai/us/ARLO/earnings-transcript/fy24-q4-c8a9)