The Premier Stocks For Your Portfolio: Arlo Technologies Inc. (ARLO), Castlight Health Inc. (CSLT)

Arlo Technologies Inc. (NYSE: ARLO) shares are 38.72% up in the year-to-date (YTD) period and have moved -14.37% or -$0.98 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +386.67% lower. Comparatively, the stock is -20.00% down YTD and 164.25% over the trailing 3-month period. If we look at the shorter duration, its week performance is -3.15% and 42.79% over the month.

Analyst Recommendations

On November 12, 2019, Deutsche Bank recommended the ARLO stock is a Buy, while earlier, Raymond James had Upgrade the stock as a Outperform on July 29, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the ARLO stock is a “Moderate Buy. 0 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 2 rating it as an Overweight.

The stock currently trades at $5.84 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $7.00. The forecasts give the Arlo Technologies Inc. stock a price target range of $8.00 on the higher side while at least one analyst think the stock could plunge to a low of $6.00. The two limits represent an upside potential of 27.0% or 2.67%.

Earnings Forecast

Analysts estimate the earnings to increase 24.40% in the current quarter to -$0.25, up from the -$0.32 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$1.1, down -11.00% from -$1.42 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.26 and -$0.13. Wall Street estimates earnings per share to be at an average of -$0.85 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 17 over the last 12 months, while SEC filings reveal that there have been 11 insider sales over the same period. Insiders have purchases 1,284,218 shares while those sold by company executives and officers stand at 73,564. The last 3 months have seen insiders trade a total of 415,147 and 34,337 in purchases and sales respectively.

Summers Grady, a Director at the company, bought 483 shares worth $1425.0 at $2.95 per share on Jul 15. The Director had earlier bought another 254 ARLO shares valued at $1397.0 on Aug 17. The shares were bought at $5.50 per share. Summers Grady (Director) bought 620 shares at $2.18 per share on Jun 15 for a total of $1352.0 while Summers Grady, (Director) bought 670 shares on May 15 for $1387.0 with each share fetching $2.07.

Castlight Health Inc. (NYSE:CSLT), on the other hand, is trading around $1.34 with a market cap of $198.68M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $1.31 and spell out a less modest performance – a -2.29% return. Some analysts are even forecasting -$0.1 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Castlight Health Inc. (CSLT) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CSLT’s operating margin was negative on the trailing 12 months basis, remaining steady at -56.60%, while the operating expenses over the recent quarter were at $27.83 million. This represented a 21.61% of the company’s total revenues which amounted $35.5 million. With this in place, we can see that the company’s diluted EPS declined -$0.03 on the year-over-year period, shrinking to -$0.06 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $172.27 million from $180.68 million over the previous quarter. The cash flow from operating activities totaled -$11.26 million, significantly higher than the -$13.95 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$14.56 million.

Insider activity

Insiders have transacted a total of 23 times at Castlight Health Inc. over the last 6 months, with insider purchases undertaken 21 times and accounting for 1,843,868 shares. Insider sales totaled 11,422 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are 19.0 shares. Insiders now hold a total of 5.86M shares after the latest sales, with 45.50% net shares purchased.

Major holders

Insiders own 3.20% of the company shares, while shares held by institutions stand at 88.00% with a share float percentage of 109.14M. Investors are also buoyed by the number of investors in a company, with Castlight Health Inc. having a total of 126 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 17.17 million shares worth more than $14.25 million. As of Jun 29, 2020, FMR, LLC held 14.85% of shares outstanding.

The other major institutional holder is Venrock Management V, LLC, with the investment firm holding over 15.18 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $12.6 million and represent 13.13% of shares outstanding.