ARM (NASDAQ:ARM) Shares Down 2.7% – What’s Next?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) fell 2.7% during trading on Wednesday. The company traded as low as $290.50 and last traded at $294.37. 3,401,833 shares were traded during trading, a decline of 56% from the average session volume of 7,669,170 shares. The stock had previously closed at $302.56.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Morgan Stanley lifted their target price on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Needham & Company LLC restated a “buy” rating and issued a $255.00 price target on shares of ARM in a research report on Thursday, July 30th. Bank of America reaffirmed a “neutral” rating and issued a $335.00 price objective (up from $245.00) on shares of ARM in a research note on Thursday, July 30th. Guggenheim reissued a “buy” rating and set a $255.00 target price on shares of ARM in a research note on Thursday, July 30th. Finally, Susquehanna raised their target price on ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $303.32.

ARM Stock Down 2.7%

The firm has a market capitalization of $314.41 billion, a PE ratio of 303.48, a price-to-earnings-growth ratio of 8.98 and a beta of 3.78. The business’s 50-day moving average price is $267.54 and its 200-day moving average price is $263.70.

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

Insider Activity at ARM

In other news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction 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 of the company’s stock, valued at approximately $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ARM. CX Institutional purchased a new stake in shares of ARM during the 3rd quarter worth about $58,000. QRG Capital Management Inc. grew its stake in shares of ARM by 32.1% in the 2nd quarter. QRG Capital Management Inc. now owns 9,591 shares of the company’s stock valued at $3,401,000 after buying an additional 2,330 shares in the last quarter. Envestnet Portfolio Solutions Inc. bought a new stake in shares of ARM in the 2nd quarter valued at approximately $2,755,000. IKE Capital LLC increased its holdings in ARM by 88.7% in the second quarter. IKE Capital LLC now owns 5,331 shares of the company’s stock worth $1,890,000 after buying an additional 2,506 shares during the last quarter. Finally, Capstone Financial Advisors Inc. acquired a new position in ARM in the second quarter worth approximately $308,000. Hedge funds and other institutional investors 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 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.