ARM (NASDAQ:ARM) Shares Down 3.1% – Time to Sell?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 3.1% during mid-day trading on Tuesday. The company traded as low as $217.26 and last traded at $221.06. Approximately 5,068,950 shares changed hands during trading, a decline of 33% from the average daily volume of 7,566,435 shares. The stock had previously closed at $228.05.

Analyst Ratings Changes

Several equities analysts recently commented on ARM shares. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research note on Thursday, October 15th. Jefferies Financial Group restated a “buy” rating and issued a $320.00 target price on shares of ARM in a research report on Monday, July 20th. Guggenheim reaffirmed a “buy” rating and set a $255.00 target price on shares of ARM in a research note on Thursday, July 30th. Raymond James Financial reiterated an “outperform” rating and set a $166.00 price target on shares of ARM in a report on Tuesday, August 25th. Finally, New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target for the company in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $303.32.

ARM Price Performance

The company has a fifty day moving average price of $264.61 and a two-hundred day moving average price of $271.80. The company has a market capitalization of $242.02 billion, a P/E ratio of 233.60, a PEG ratio of 6.56 and a beta of 3.78.

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

Insider Transactions at ARM

In other news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the completion of the transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

A number of hedge funds have recently modified their holdings of the business. Hyperion Asset Management Ltd grew its stake in shares of ARM by 36.9% in the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock worth $210,662,000 after purchasing an additional 195,942 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after purchasing an additional 872,644 shares during the last quarter. Janus Henderson Group PLC bought a new position in ARM during the 1st quarter worth $116,112,000. Altshuler Shaham Ltd lifted its holdings in ARM by 202.6% during the 1st quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company’s stock worth $72,356,000 after buying an additional 320,236 shares during the period. Finally, Sei Investments Co. lifted its holdings in ARM by 67.5% during the 1st quarter. Sei Investments Co. now owns 454,220 shares of the company’s stock worth $68,714,000 after buying an additional 183,045 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.