PRIMECAP Cuts Arlo Stake to 5.6% as of Dec 31, 2023

TL;DR

**PRIMECAP just trimmed its Arlo stake to 5.6%, signaling a potential cooling on the stock.**

AI Summary

PRIMECAP Management Company, an investment adviser, filed an amended Schedule 13G/A on February 12, 2024, disclosing its ownership in Arlo Technologies, Inc. As of December 31, 2023, PRIMECAP beneficially owned 4,876,641 shares of Arlo's common stock, representing 5.6% of the company. This is a decrease from their previous filing, indicating they have reduced their stake, which could signal a shift in their investment outlook for Arlo.

Why It Matters

This filing shows a significant institutional investor, PRIMECAP Management Company, has reduced its ownership in Arlo Technologies, Inc., which could be interpreted as a less bullish outlook on the stock's future performance.

Risk Assessment

Risk Level: medium — A major institutional investor reducing its stake can sometimes precede further stock price declines if other investors follow suit.

Analyst Insight

Investors considering Arlo Technologies should note this reduction by a major institutional holder and research potential reasons for the decreased stake before making investment decisions.

Key Numbers

• 4,876,641 — Shares Beneficially Owned (This is the total number of Arlo shares PRIMECAP Management Company owned as of December 31, 2023.)
• 5.6% — Percentage of Class (This represents PRIMECAP's ownership percentage of Arlo Technologies, Inc. common stock.)
• 4,430,341 — Sole Voting Power Shares (This indicates the number of shares PRIMECAP has the sole power to vote.)

Key Players & Entities

• PRIMECAP Management Company (company) — the reporting person and investment adviser
• Arlo Technologies, Inc. (company) — the subject company whose shares are being reported
• 4,876,641 (dollar_amount) — the aggregate number of shares beneficially owned by PRIMECAP
• 5.6% (dollar_amount) — the percentage of Arlo's class of securities beneficially owned by PRIMECAP
• December 31, 2023 (date) — the date of the event requiring the filing

Forward-Looking Statements

• Arlo Technologies' stock price may experience downward pressure in the short term. (Arlo Technologies, Inc.) — medium confidence, target: Q1 2024
• Other institutional investors might re-evaluate their positions in Arlo. (Institutional Investors) — low confidence, target: Q2 2024

FAQ

Filing Documents

• arloa5_21224.htm (SC 13G/A) — 25KB
• 0001085146-24-001092.txt ( ) — 27KB

(a)

ITEM 1(a). NAME OF ISSUER: Arlo Technologies, Inc.

(b)

ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES: 2200 Faraday Ave., Suite 150, Carlsbad, CA 92008

(a)

ITEM 2(a). NAME OF PERSON FILING: PRIMECAP Management Company

(b)

ITEM 2(b). ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE: 177 E. Colorado Blvd., 11th Floor, Pasadena, CA 91105

(c)

ITEM 2(c). CITIZENSHIP: U.S.A.

(d)

ITEM 2(d). TITLE OF CLASS OF SECURITIES: COM

(e)

ITEM 2(e). CUSIP NUMBER: 04206A101 ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO SECTION 240.13d-1(b), or 13d-2(b) or (c) CHECK WHETHER THE PERSON FILING IS A: (a) [ ] Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78c); (b) [ ] Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c); (c) [ ] Insurance company as defined in Section 3(a)(19) of the Act (15 U.S.C. 78c); (d) [ ] Investment company registered under Section 8 of the Investment Company Act of 1940 (15 U.S.C 80a-8); (e) [X] An investment adviser in accordance with 240.13d-1(b)(1)(ii)(E); (f) [ ] An employee benefit plan or endowment fund in accordance with 240.13d-1(b)(1)(ii)(F); (g) [ ] A parent holding company or control person in accordance with 240.13d-1(b)(1)(ii)(G); (h) [ ] A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) [ ] A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3); (j) [ ] A non-U.S. institution in accordance with 240.13d-1(b)(1)(ii)(J); (k) [ ] Group, in accordance with 240.13d-1(b)(1)(ii)(K). If filing as a non-U.S. institution in accordance with 240.13d1(b)(1)(ii)(J), please specify the type of institution: ITEM 4. OWNERSHIP (a) Amount beneficially owned: 4,876,641 (b) Percent of class: 5.15% (c) Number of shares as to which the person has: (i) sole power to vote or to direct the vote: 4,430,341 (ii) shared power to vote or to direct the vote: 0 (iii) sole power to dispose or direct the disposition of: 4,876,641 (iv) shared power to dispose or to direct the disposition of: 0 ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS: If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securitie