ARM (NASDAQ:ARM) Trading Down 6.7% – Here’s Why

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) were down 6.7% on Tuesday . The stock traded as low as $247.60 and last traded at $253.32. 6,299,199 shares changed hands during trading, a decline of 24% from the average session volume of 8,285,978 shares. The stock had previously closed at $271.43.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ARM. HSBC lowered shares of ARM from a “buy” rating to a “hold” rating and upped their target price for the company from $255.00 to $315.00 in a research note on Tuesday, July 14th. KeyCorp boosted their price objective on ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a report on Tuesday, July 14th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Friday, July 17th. The Goldman Sachs Group increased their target price on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a report on Thursday, May 7th. Finally, Susquehanna boosted their price target on ARM from $300.00 to $320.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. Eighteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Trading Down 6.7%

The stock’s 50-day moving average price is $310.17 and its 200-day moving average price is $226.20. The company has a market capitalization of $270.57 billion, a P/E ratio of 261.16, a P/E/G ratio of 8.29 and a beta of 3.91.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.35 EPS. Sell-side analysts expect that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the completion of the transaction, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Charlotte Claire Eaton sold 7,805 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $290.01, for a total value of $2,263,528.05. Following the sale, the insider owned 5,000 shares in the company, valued at $1,450,050. The trade was a 60.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 80,921 shares of company stock valued at $23,279,024.

Institutional Investors Weigh In On ARM

Several large investors have recently added to or reduced their stakes in the stock. Rathbones Group PLC lifted its position in ARM by 4,638.8% in the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock valued at $54,660,000 after purchasing an additional 489,491 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its position in ARM by 34.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock worth $2,644,000 after purchasing an additional 6,232 shares during the last quarter. Partners Group Holding AG bought a new position in ARM in the 4th quarter worth about $798,000. Farther Finance Advisors LLC increased its stake in shares of ARM by 98.2% in the fourth quarter. Farther Finance Advisors LLC now owns 17,604 shares of the company’s stock valued at $1,924,000 after purchasing an additional 8,724 shares during the period. Finally, Pacific Heights Asset Management LLC raised its holdings in shares of ARM by 48.6% during the fourth quarter. Pacific Heights Asset Management LLC now owns 275,000 shares of the company’s stock valued at $30,060,000 after buying an additional 90,000 shares during the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

About ARM

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.