This Insider Has Just Sold Shares In Arlo Technologies

Some Arlo Technologies, Inc. (NYSE:ARLO) shareholders may be a little concerned to see that the CEO & Director, Matthew McRae, recently sold a substantial US$3.7m worth of stock at a price of US$11.54 per share. However, that sale only accounted for 9.1% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Arlo Technologies

Arlo Technologies Insider Transactions Over The Last Year

Notably, that recent sale by Matthew McRae is the biggest insider sale of Arlo Technologies shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$13.00). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.1% of Matthew McRae's stake.

Over the last year we saw more insider selling of Arlo Technologies shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Arlo Technologies

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.8% of Arlo Technologies shares, worth about US$75m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Arlo Technologies Insider Transactions Indicate?

Insiders sold Arlo Technologies shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Arlo Technologies you should know about.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.