ARM (NASDAQ:ARM) Stock Falls 4.1% – Time to Sell?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) fell 4.1% on Monday. The stock traded as low as $253.34 and last traded at $255.24. Approximately 3,577,217 shares were traded during trading, a decline of 53% from the average daily volume of 7,624,722 shares. The stock had previously closed at $266.28.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $255.00 price target on shares of ARM in a research report on Thursday, July 30th. KeyCorp boosted their price objective on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Piper Sandler initiated coverage on shares of ARM in a research note on Wednesday, September 9th. They set an “overweight” rating and a $320.00 target price on the stock. Rosenblatt Securities reduced their target price on shares of ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Finally, UBS Group reduced their target price on shares of ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Stock Performance

The company has a 50-day moving average price of $270.11 and a 200-day moving average price of $266.78. The firm has a market capitalization of $272.62 billion, a price-to-earnings ratio of 263.14, a PEG ratio of 7.90 and a beta of 3.78.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share 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 analyst estimates of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%. The business’s quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter last year, the company earned $0.35 EPS. On average, research 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 ARM news, CFO Jason Child sold 10,400 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Institutional investors have recently modified their holdings of the stock. Employees Provident Fund Board purchased a new position in shares of ARM in the 4th quarter valued at approximately $120,241,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares during the period. Janus Henderson Group PLC acquired a new position in shares of ARM in the first quarter valued at approximately $116,112,000. SG Americas Securities LLC raised its stake in shares of ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after purchasing an additional 705,459 shares during the last quarter. Finally, Hyperion Asset Management Ltd raised its stake in shares of ARM by 28.0% during the fourth quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock worth $200,713,000 after purchasing an additional 401,594 shares during the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.