Arlo Technologies stock rises on $100M buyback program

Arlo Technologies (NYSE:ARLO) shares gained 4.3% in premarket trading Tuesday following the company's announcement of a $100 million stock repurchase program.

The smart home security services provider said its Board of Directors approved the buyback of up to $100 million of its common stock through December 31, 2028. The repurchases will be conducted through open market purchases.

Chief Executive Officer Matthew McRae said the authorization reflects the board and management's belief that shares are undervalued relative to the company's long-term value. McRae added that the program underscores the company's commitment to delivering value to stockholders while continuing to invest in other areas of its capital allocation plan.

The repurchases will be effected in a manner deemed to be in the best interests of the company and its stockholders, considering economic cost and prevailing market conditions, including relative trading prices and volumes of Arlo's common stock. The company expects to conduct the repurchases pursuant to Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

The stock repurchase program is expected to continue through December 31, 2028 unless extended or shortened by the Board of Directors.