ARM (NASDAQ:ARM) Trading Down 3% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 3% on Friday . The stock traded as low as $242.50 and last traded at $243.32. Approximately 3,675,295 shares changed hands during trading, a decline of 55% from the average daily volume of 8,201,083 shares. The stock had previously closed at $250.72.

Wall Street Analyst Weigh In

A number of analysts have commented on ARM shares. Susquehanna upped their price target on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. Rosenblatt Securities reduced their target price on shares of ARM from $270.00 to $250.00 and set a “buy” rating for the company in a report on Friday, July 31st. Mizuho raised their target price on shares of ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price on the stock in a research note on Thursday, July 30th. Finally, Bank of America reaffirmed a “neutral” rating on shares of ARM in a report on Thursday, July 30th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $285.33.

ARM Stock Down 3.0%

The company has a market capitalization of $259.89 billion, a PE ratio of 250.85, a PEG ratio of 7.21 and a beta of 3.90. The company’s 50 day moving average is $303.00 and its two-hundred day moving average is $229.32.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. The business had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.35 EPS. Analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Buying and Selling

In related news, CAO Laura Kathleen Bartels sold 11,306 shares of the 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider William Abbey sold 6,566 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the transaction, the insider owned 20,563 shares of the company’s stock, valued at $8,281,131.36. This represents a 24.20% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 22,072 shares of company stock valued at $8,528,128.

Institutional Investors Weigh In On ARM

A number of hedge funds have recently bought and sold shares of ARM. Amundi grew its stake in shares of ARM by 24.8% in the 1st quarter. Amundi now owns 11,804 shares of the company’s stock worth $1,153,000 after buying an additional 2,345 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of ARM by 28.8% in the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after acquiring an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. grew its position in ARM by 9.0% in the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock worth $393,000 after acquiring an additional 200 shares in the last quarter. Bank of Nova Scotia purchased a new position in ARM in the second quarter worth about $556,000. Finally, State Street Corp increased its stake in ARM by 14.7% during the second quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after acquiring an additional 56,656 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

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.