ARM (NASDAQ:ARM) Trading Down 2.2% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 2.2% during trading on Tuesday . The company traded as low as $200.89 and last traded at $207.92. 7,786,623 shares changed hands during mid-day trading, an increase of 0% from the average session volume of 7,772,085 shares. The stock had previously closed at $212.65.

Analysts Set New Price Targets

A number of research firms have recently commented on ARM. HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and lifted their price target for the company from $90.00 to $205.00 in a research report on Friday, March 20th. Wells Fargo & Company lifted their price target on shares of ARM from $220.00 to $255.00 and gave the company an “overweight” rating in a research report on Thursday, May 7th. Rosenblatt Securities lifted their price target on shares of ARM from $175.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. TD Cowen lifted their price target on shares of ARM from $165.00 to $265.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Finally, Raymond James Financial reissued an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Nineteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, ARM presently has a consensus rating of “Moderate Buy” and a consensus target price of $199.61.

ARM Price Performance

The firm’s 50 day moving average price is $157.53 and its 200-day moving average price is $139.01. The firm has a market cap of $219.67 billion, a price-to-earnings ratio of 247.52, a P/E/G ratio of 7.35 and a beta of 3.40.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The business had revenue of $1.49 billion for the quarter. Analysts expect that ARM Holdings PLC Sponsored ADR will post 1.18 EPS for the current year.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 21,280 shares of ARM stock in a transaction on Wednesday, April 22nd. The shares were sold at an average price of $180.00, for a total transaction of $3,830,400.00. Following the sale, the chief financial officer owned 153,426 shares in the company, valued at $27,616,680. The trade was a 12.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 9,299 shares of ARM stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $160.85, for a total transaction of $1,495,744.15. Following the sale, the chief executive officer owned 273,680 shares in the company, valued at $44,021,428. This represents a 3.29% 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. Insiders have sold 83,712 shares of company stock worth $13,614,730 in the last quarter.

Institutional Investors Weigh In On ARM

A number of institutional investors have recently bought and sold shares of the business. CacheTech Inc. boosted its stake in ARM by 9.1% during the first quarter. CacheTech Inc. now owns 28,011 shares of the company’s stock worth $4,238,000 after buying an additional 2,346 shares in the last quarter. Baader Bank Aktiengesellschaft acquired a new stake in ARM during the first quarter worth $312,000. Cassaday & Co Wealth Management LLC acquired a new stake in ARM during the first quarter worth $40,000. Hollencrest Capital Management acquired a new stake in shares of ARM in the 1st quarter valued at $135,000. Finally, Parallel Advisors LLC boosted its stake in shares of ARM by 53.3% in the 1st quarter. Parallel Advisors LLC now owns 3,142 shares of the company’s stock valued at $475,000 after purchasing an additional 1,093 shares in 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.