Arlo Technologies CEO Offloads 866K Shares in Major Insider Transaction

Rhea-AI Filing Summary

Arlo Technologies CEO Matthew Blake McRae executed significant stock sales through a pre-planned Rule 10b5-1 trading plan established on March 14, 2025. Over three consecutive trading days, McRae disposed of a total of 866,622 shares in the following transactions:

• June 20, 2025: Sold 372,488 shares at weighted average price of $17.1449
• June 23, 2025: Sold 188,930 shares at weighted average price of $16.7052
• June 24, 2025: Sold 305,204 shares at weighted average price of $16.8032

Following these transactions, McRae retains beneficial ownership of 1,796,359 shares held directly. The sales were executed according to a predetermined trading plan, which provides an affirmative defense against insider trading allegations. The filing notes that McRae had previously acquired 2,236 shares through the company's Employee Stock Purchase Plan on May 15, 2025.

Positive

• The CEO's stock sales were executed according to a pre-planned Rule 10b5-1 trading plan established on March 14, 2025, indicating compliance with insider trading regulations
• The CEO Matthew McRae still maintains a significant position of 1,796,359 shares after the transactions, showing continued alignment with shareholder interests
• The CEO recently acquired 2,236 shares through the Employee Stock Purchase Plan on May 15, 2025, demonstrating ongoing participation in company equity programs

Negative

• Large insider sale totaling 866,622 shares over three consecutive days (June 20-24, 2025)
• The sales represent approximately 32.5% reduction in the CEO's holdings (from 2,290,493 to 1,796,359 shares)
• Declining sale prices over the three-day period from $17.14 to $16.80 could suggest downward pressure on the stock

Insights

Insider Trading Analyst

This Form 4 reveals significant selling activity by Arlo Technologies' CEO Matthew McRae, who divested 866,622 shares over three consecutive trading days, representing approximately 32.5% of his direct holdings. While substantial, the transactions were executed under a Rule 10b5-1 trading plan established in March 2025, indicating these sales were pre-planned rather than reactionary to recent company developments.

The sequential nature of the sales and declining prices (from $17.14 to $16.70 to $16.80) suggest a methodical liquidation strategy likely designed to minimize market impact. Despite this considerable reduction, McRae maintains a substantial position of 1.79 million shares, demonstrating continued alignment with shareholder interests.

Contextually, insider selling at technology companies is common for executive compensation diversification. However, the volume here warrants attention, especially if other executives establish similar selling programs. Importantly, McRae's participation in the Employee Stock Purchase Plan (acquiring 2,236 shares in May) indicates continued belief in the company's long-term prospects despite this profit-taking activity.

Corporate Governance Specialist

This filing raises several governance considerations regarding CEO McRae's substantial share divestiture. While the transactions comply with regulatory requirements through a properly established 10b5-1 plan, the magnitude of the sales (32.5% of holdings) warrants shareholder attention. Such significant liquidation by the company's chief executive could potentially signal reduced confidence in future performance or simply prudent personal portfolio diversification.

From a governance perspective, the transparent disclosure and adherence to the pre-established trading plan mitigates concerns about opportunistic selling. However, shareholders should monitor whether this triggers similar behavior among other executives, which could indicate broader internal sentiment shifts.

The dual role McRae holds as both CEO and Director creates a powerful position within Arlo's governance structure. His remaining 1.79 million shares still represent meaningful skin-in-the-game, but the board's compensation committee should carefully evaluate whether additional equity incentives are needed to maintain optimal executive alignment with long-term shareholder value creation, particularly after this substantial reduction in ownership.

Executive Compensation Expert

McRae's transactions reflect a common executive compensation realization strategy, where accumulated equity-based compensation is monetized in a structured manner. The sequential three-day selling pattern totaling $14.6 million (approximate gross proceeds) suggests this represents significant wealth crystallization for the CEO, likely from previously vested stock awards or exercised options.

While the filing doesn't specify the origin of these shares, the volume indicates they likely accumulated from multi-year compensation packages. Tech executives typically receive substantial equity compensation, and periodic liquidation events are expected for personal financial planning purposes. The implementation of a 10b5-1 plan demonstrates prudent compliance with best practices for executive transactions.

McRae's continued participation in the Employee Stock Purchase Plan (ESPP) is noteworthy, as it signals ongoing commitment to accumulating company shares, albeit at a much smaller scale than his sales. The board should ensure future equity grants properly incentivize retention and performance, particularly after this substantial reduction. Shareholders should review Arlo's next proxy statement to evaluate whether the compensation committee adjusts equity award structures in response to this significant ownership change.

Portfolio Manager

The substantial insider selling by Arlo's CEO presents a mixed signal for investors evaluating the company's near-term prospects. The liquidation of 866,622 shares (approximately $14.6 million worth) by the chief executive might create downward pressure on the stock, particularly as the market digests this significant insider activity.

From a valuation perspective, the transactions occurred at prices between $16.35-$17.50, suggesting McRae found this range attractive for profit-taking. For context, Arlo stock has experienced volatility in the smart home security segment, facing competition from larger tech ecosystems while working to expand its subscription services model.

While the pre-planned nature of these sales through a 10b5-1 plan mitigates concerns about opportunistic selling based on non-public information, the sheer volume deserves investor attention. The remaining 1.79 million share position (approximately $30 million at current prices) indicates McRae maintains substantial exposure to Arlo's future performance. As a portfolio manager, I'd view this as a partial risk reduction by the executive rather than a complete loss of confidence, but would closely monitor upcoming earnings for confirmation of business trajectory.

Technical Analyst

This insider transaction data provides valuable technical signals beyond typical chart patterns. The CEO's selling at price points between $16.35-$17.50 potentially establishes psychological resistance levels for Arlo stock. The weighted average prices across the three-day selling program ($17.14, $16.70, and $16.80) suggest consolidation in this range.

The sequential nature of these large block sales (372K, 189K, and 305K shares) over consecutive trading days likely created increased supply that technical traders should monitor for potential price impact. The slightly recovering price on the third day ($16.80 vs $16.70) might indicate resilient demand absorbing this supply, a potentially bullish indicator despite the insider selling.

From a technical perspective, significant insider transactions often create volume anomalies that can establish new support/resistance zones. Traders should watch if the $16.35 level (the lowest transaction price) becomes a new technical support level. Additionally, the $17.50 ceiling (highest transaction price) may represent management's perception of fair value in the near term. This selling cluster warrants close attention to volume patterns in coming sessions to determine if institutional investors view this price range as an opportunity or warning sign.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

X

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

MCRAE MATTHEW BLAKE

(Last) (First) (Middle)

5770 FLEET STREET

(Street)

CARLSBAD CA 92008

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
Arlo Technologies, Inc. [ ARLO ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	CEO

3. Date of Earliest Transaction (Month/Day/Year)
06/20/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	06/20/2025		S(1)		372,488	D	$17.1449(2)	2,290,493(3)	D
Common Stock	06/23/2025		S(1)		188,930	D	$16.7052(4)	2,101,563	D
Common Stock	06/24/2025		S(1)		305,204	D	$16.8032(5)	1,796,359	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. The sales reported in this Form 4 was effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on March 14, 2025.

2. The weighted average sale price for the transaction reported was $17.1449, and the range of prices were between $16.97 and $17.50. Upon request by the SEC staff, the Issuer, or any security holder of the Issuer, full information regarding the number of shares sold at each separate price will be provided.

3. Includes 2,236 shares acquired under the Issuer's Employee Stock Purchase Plan on May 15, 2025.

4. The weighted average sale price for the transaction reported was $16.7052, and the range of prices were between $16.35 and $17.12. Upon request by the SEC staff, the Issuer, or any security holder of the Issuer, full information regarding the number of shares sold at each separate price will be provided.

5. The weighted average sale price for the transaction reported was $16.8032, and the range of prices were between $16.65 and $17.02. Upon request by the SEC staff, the Issuer, or any security holder of the Issuer, full information regarding the number of shares sold at each separate price will be provided.

	/s/ Brian Busse, Attorney-in-Fact	06/24/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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FAQ

How many ARLO shares did CEO Matthew McRae sell in June 2025?

CEO Matthew McRae sold a total of 866,622 shares across three transactions: 372,488 shares on June 20, 188,930 shares on June 23, and 305,204 shares on June 24, 2025.

What was the price range of ARLO stock sales by CEO McRae on June 20, 2025?

On June 20, 2025, the ARLO shares were sold at a weighted average price of $17.1449, with prices ranging between $16.97 and $17.50 per share.

How many ARLO shares does CEO Matthew McRae still own after these transactions?

Following the reported transactions, CEO Matthew McRae directly owns 1,796,359 shares of ARLO common stock.

Was ARLO CEO McRae's stock sale planned in advance?

Yes, the sales were executed pursuant to a Rule 10b5-1 trading plan that was adopted by McRae on March 14, 2025, indicating these were pre-planned transactions.

What positions does Matthew McRae hold at ARLO according to the Form 4?

According to the Form 4, Matthew McRae serves as both CEO and Director of Arlo Technologies, Inc.