ARM (NASDAQ:ARM) Trading Down 10.1% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price dropped 10.1% on Tuesday . The stock traded as low as $362.90 and last traded at $366.39. 10,862,396 shares traded hands during mid-day trading, an increase of 20% from the average daily volume of 9,053,431 shares. The stock had previously closed at $407.72.

Analyst Ratings Changes

ARM has been the topic of several research analyst reports. Wells Fargo & Company upped their price objective on shares of ARM from $255.00 to $410.00 and gave the stock an “overweight” rating in a research report on Monday, June 1st. Mizuho lifted their target price on shares of ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday, June 8th. Rosenblatt Securities boosted their price target on shares of ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. TD Cowen increased their price target on shares of ARM from $265.00 to $475.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, Royal Bank Of Canada raised their price objective on shares of ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a research report on Thursday, May 7th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, ARM has an average rating of “Moderate Buy” and a consensus price target of $279.83.

ARM Trading Down 3.8%

The company has a market capitalization of $369.14 billion, a PE ratio of 411.29, a PEG ratio of 13.31 and a beta of 3.78. The stock has a fifty day moving average of $284.67 and a two-hundred day moving average of $180.54.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. Equities analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Buying and Selling at ARM

In other ARM news, insider Charlotte Claire Eaton sold 4,000 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $282.77, for a total value of $1,131,080.00. Following the completion of the sale, the insider directly owned 7,805 shares of the company’s stock, valued at $2,207,019.85. The trade was a 33.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. The trade was a 48.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 248,205 shares of company stock worth $57,741,572 over the last 90 days.

Institutional Investors Weigh In On ARM

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Compound Planning Inc. grew its position in ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after acquiring an additional 69 shares during the last quarter. Rathbones Group PLC lifted its position in ARM by 0.7% in the third quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after purchasing an additional 70 shares during the last quarter. CreativeOne Wealth LLC boosted its stake in shares of ARM by 5.0% during the fourth quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock valued at $200,000 after purchasing an additional 87 shares during the period. AdvisorNet Financial Inc boosted its stake in shares of ARM by 6.2% during the first quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock valued at $254,000 after purchasing an additional 98 shares during the period. Finally, US Bancorp DE grew its holdings in shares of ARM by 1.6% in the third quarter. US Bancorp DE now owns 6,485 shares of the company’s stock worth $918,000 after purchasing an additional 99 shares during the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.