This connected device company is expected to grow by 39.4% next year.
Arlo Technologies, Inc. (ARLO)
From The Stock Spin-off Investing Newsletter
This week, we saw insider buying and selling at Arlo Technologies, Inc. (ARLO). The CFO sold 4,563 shares at an average price of $4.01 while the Chairman bought 50,000 shares at an average price of $4.24. I view this news as a net positive. As Peter Lynch says, insiders sell for a variety of reasons, but they only buy for one reason: they think the stock is undervalued.
ARLO is a connected device company. Its main product line consists of smart, Wi-Fi connected security cameras, but it is expanding into other productions including smart security lights, smart doorbells, and baby monitors.
Best Buy reviews for the Ultra (camera) continue to improve. The first 39 reviews for the initial Ultra launch averaged 2.5 out of 5. The reviews that have been posted since the relaunch have averaged 4.2 out of 5. The most recent 20 reviews have an average rating of 4.5 out of 5. This is excellent progress. ARLO continues to appear attractive, especially given its recent better-than-expected first quarter results which significantly de-risk the stock.
ARLO is currently trading at 0.23x ‘20 revenue vs consumer hardware peers (Sonos, FitBit, and GoPro) at 0.55x.
Richard Howe, CFA, The Stock Spin-off Investing Newsletter, www.stockspinoffinvesting.com, 617-750-7454,