ARM (NASDAQ:ARM) Lowered to Hold Rating by HSBC

ARM (NASDAQ:ARM) was downgraded by equities research analysts at HSBC from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Marketbeat.com reports. They presently have a $315.00 target price on the stock. HSBC’s target price suggests a potential upside of 5.35% from the stock’s current price.

Several other brokerages have also recently issued reports on ARM. Sanford C. Bernstein set a $500.00 price target on ARM in a research report on Wednesday, June 17th. Barclays increased their price objective on ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research report on Monday, June 1st. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Rosenblatt Securities upped their price target on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Finally, 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. Eighteen research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, ARM has an average rating of “Moderate Buy” and a consensus price target of $295.25.

ARM Price Performance

Shares of NASDAQ:ARM opened at $298.99 on Tuesday. ARM has a 1-year low of $100.02 and a 1-year high of $452.70. The stock has a market cap of $319.35 billion, a P/E ratio of 355.94, a P/E/G ratio of 11.74 and a beta of 3.76. The firm has a fifty day moving average price of $319.85 and a 200 day moving average price of $198.68.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The company had revenue of $1.49 billion for the quarter. Sell-side analysts expect that ARM will post 1.12 EPS for the current fiscal year.

Insider Activity

In related news, insider William Abbey sold 10,887 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $224.14, for a total value of $2,440,212.18. Following the completion of the sale, the insider owned 43,353 shares in the company, valued at $9,717,141.42. This trade represents a 20.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares in the company, valued at $10,824,696.25. This represents a 50.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 238,906 shares of company stock valued at $56,245,828 over the last ninety days.

Institutional Trading of ARM

A number of institutional investors have recently modified their holdings of the business. Syntax Research Inc. purchased a new position in ARM in the first quarter worth $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in shares of ARM during the 1st quarter worth $30,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of ARM during the 4th quarter worth $30,000. Navalign LLC acquired a new position in shares of ARM during the 4th quarter worth $33,000. Finally, FWL Investment Management LLC acquired a new position in shares of ARM during the 2nd quarter worth $34,000. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

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.