ARM (NASDAQ:ARM) Stock Price Down 5.2% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price dropped 5.2% during mid-day trading on Monday . The stock traded as low as $267.31 and last traded at $267.85. 3,159,594 shares traded hands during trading, a decline of 63% from the average session volume of 8,466,057 shares. The stock had previously closed at $282.57.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on ARM shares. The Goldman Sachs Group increased their price objective on shares of ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Guggenheim reaffirmed a “buy” rating and set a $255.00 price target on shares of ARM in a research report on Thursday, July 30th. KeyCorp increased their price target on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. New Street Research raised ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a research report on Thursday, July 30th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a research note on Thursday, May 7th. Eighteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Trading Up 1.3%

The stock’s 50-day moving average is $318.03 and its 200-day moving average is $221.71. The company has a market cap of $290.98 billion, a price-to-earnings ratio of 280.86, a P/E/G ratio of 7.94 and a beta of 3.90.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping 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 analysts’ expectations of $1.26 billion. During the same period last year, the company posted $0.35 earnings per share. The business’s quarterly revenue was up 22.4% on a year-over-year basis. As a group, analysts predict that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Transactions at ARM

In related 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 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Jason Child sold 31,920 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the transaction, the chief financial officer owned 174,232 shares in the company, valued at approximately $39,470,517.28. The trade was a 15.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 164,088 shares of company stock valued at $41,099,903.

Institutional Trading of ARM

Several hedge funds have recently bought and sold shares of ARM. Rathbones Group PLC raised its position in ARM by 4,638.8% in the fourth quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after acquiring an additional 489,491 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in ARM by 34.7% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after acquiring an additional 6,232 shares during the last quarter. Partners Group Holding AG bought a new position in shares of ARM during the 4th quarter valued at approximately $798,000. Mirae Asset Global Investments Co. Ltd. grew its position in shares of ARM by 13.5% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 417,775 shares of the company’s stock valued at $45,667,000 after acquiring an additional 49,811 shares during the period. Finally, Farther Finance Advisors LLC increased its stake in shares of ARM by 98.2% during the 4th quarter. Farther Finance Advisors LLC now owns 17,604 shares of the company’s stock worth $1,924,000 after purchasing an additional 8,724 shares during the last quarter. Institutional investors and hedge funds 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.