AutoWeb Inc. (AUTO) And Arlo Technologies Inc. (ARLO) Among Headliners

AutoWeb Inc. (NASDAQ: AUTO) shares are 117.41% up in the year-to-date (YTD) period and have moved 20.40% or $0.91 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +974.00% lower. Comparatively, the stock is -3.94% down YTD and 411.43% over the trailing 3-month period. If we look at the shorter duration, its week performance is 55.65% and 289.13% over the month.

Analyst Recommendations

On August 20, 2020, Lake Street recommended the AUTO stock is a Buy, while earlier, Barrington Research had Upgrade the stock as a Outperform on August 27, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the AUTO stock is a “Strong Buy. 0 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 4 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $5.37 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $5.50. The forecasts give the AutoWeb Inc. stock a price target range of $10.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.00. The two limits represent an upside potential of 46.3% or -79.0%.

Earnings Forecast

Analysts estimate the earnings to increase 66.70% in the current quarter to -$0.1, up from the -$0.13 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.59, down -27.00% from -$1.17 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.2 and -$0.02. Wall Street estimates earnings per share to be at an average of -$0.22 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 0 over the last 12 months, while SEC filings reveal that there have been 1 insider sales over the same period. Insiders have purchases 0 shares while those sold by company executives and officers stand at 4,408. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Arlo Technologies Inc. (NYSE:ARLO), on the other hand, is trading around $5.73 with a market cap of $450.78M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $7.00 and spell out a more modest performance – a 18.14% return. Some analysts are even forecasting -$1.1 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ARLO’s operating margin was negative on the trailing 12 months basis, remaining steady at -22.30%, while the operating expenses over the recent quarter were at $35.97 million. This represented a 46.02% of the company’s total revenues which amounted $66.63 million. With this in place, we can see that the company’s diluted EPS declined -$0.38 on the year-over-year period, shrinking to -$0.45 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 $389.96 million from $410.18 million over the previous quarter. Short term investments amounted to $20.03 million while total current assets were at $327.68 million. The cash flow from operating activities totaled -$48.68 million, significantly higher than the -$54.66 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$49.87 million.

Insider activity

Insiders have transacted a total of 17 times at Arlo Technologies Inc. over the last 6 months, with insider purchases undertaken 12 times and accounting for 1,128,289 shares. Insider sales totaled 38,708 shares over the same period, with these deals completed in 5 transactions. Looking at these numbers, we realize that net purchases over that period are 7.0 shares. Insiders now hold a total of 2.57M shares after the latest sales, with 78.30% net shares purchased.

Major holders

Insiders own 3.40% of the company shares, while shares held by institutions stand at 72.90% with a share float percentage of 76.03M. Investors are also buoyed by the number of investors in a company, with Arlo Technologies Inc. having a total of 182 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 11.74 million shares worth more than $30.28 million. As of Jun 29, 2020, Blackrock Inc. held 15.02% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 5.37 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $13.85 million and represent 6.87% of shares outstanding.