ARM (NASDAQ:ARM) Stock Price Down 2.1% – Time to Sell?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) dropped 2.1% on Wednesday . The company traded as low as $268.62 and last traded at $274.58. Approximately 4,406,250 shares changed hands during trading, a decline of 49% from the average daily volume of 8,556,351 shares. The stock had previously closed at $280.56.

Analysts Set New Price Targets

A number of equities research analysts have commented on ARM shares. New Street Research raised ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price for the company in a report on Thursday, July 30th. Jefferies Financial Group reaffirmed a “buy” rating and set a $320.00 price target on shares of ARM in a research note on Monday, July 20th. Barclays increased their price target on shares of ARM from $250.00 to $360.00 and gave the company an “overweight” rating in a report on Monday, June 1st. Raymond James Financial reiterated an “outperform” rating on shares of ARM in a research note on Thursday, May 7th. Finally, Morgan Stanley boosted their price objective on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Eighteen investment 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $285.33.

ARM Stock Down 1.4%

The company has a market cap of $301.81 billion, a price-to-earnings ratio of 291.31, a price-to-earnings-growth ratio of 8.14 and a beta of 3.90. The company has a fifty day simple moving average of $324.94 and a two-hundred day simple moving average of $218.25.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the previous year, the company posted $0.35 EPS. The business’s revenue was up 22.4% on a year-over-year basis. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, research analysts predict that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Activity

In other news, CFO Jason Child sold 31,920 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares in the company, valued at $39,470,517.28. This represents a 15.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the stock in a transaction that occurred on 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 completion of the sale, the chief accounting officer owned 12,135 shares in the company, valued at $4,765,414.50. This represents a 48.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 216,049 shares of company stock worth $52,101,605 in the last three months.

Institutional Investors Weigh In On ARM

Institutional investors and hedge funds have recently bought and sold shares of the stock. Syntax Research Inc. purchased a new position in ARM during the first quarter worth $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in shares of ARM in the first quarter valued at $30,000. Allied Private Wealth LLC acquired a new stake in shares of ARM during the second quarter valued at $71,000. FWL Investment Management LLC acquired a new stake in shares of ARM during the second quarter valued at $34,000. Finally, Cassaday & Co Wealth Management LLC purchased a new stake in ARM during the 1st quarter worth about $40,000. Hedge funds and other 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.