ARM (NASDAQ:ARM) Shares Down 7.2% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price dropped 7.2% during trading on Monday . The stock traded as low as $401.95 and last traded at $407.72. Approximately 9,337,369 shares changed hands during mid-day trading, an increase of 3% from the average daily volume of 9,037,244 shares. The stock had previously closed at $439.46.

Analysts Set New Price Targets

Several research firms have recently weighed in on ARM. The Goldman Sachs Group increased their price target on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research note on Thursday, May 7th. Jefferies Financial Group set a $290.00 price objective on ARM in a research note on Thursday, May 21st. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Bank of America lifted their target price on shares of ARM from $245.00 to $335.00 and gave the stock a “neutral” rating in a research note on Thursday, June 11th. Finally, Mizuho boosted their price target on shares of ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday, June 8th. Nineteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $253.38.

ARM Price Performance

The firm’s 50 day moving average is $271.16 and its 200 day moving average is $175.50. The company has a market cap of $435.48 billion, a PE ratio of 485.38, a PEG ratio of 15.96 and a beta of 3.77.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The company had revenue of $1.49 billion during the quarter. As a group, analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Jason Child sold 31,920 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the transaction, the chief financial officer directly owned 174,232 shares in the company, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Spencer Collins sold 51,961 shares of the firm’s stock in a transaction dated 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 transaction, the insider directly owned 51,125 shares in the company, valued at approximately $10,824,696.25. This represents a 50.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 301,338 shares of company stock valued at $66,030,158 over the last quarter.

Institutional Investors Weigh In On ARM

A number of large investors have recently added to or reduced their stakes in ARM. Amundi grew its position in shares of ARM by 24.8% in the 1st quarter. Amundi now owns 11,804 shares of the company’s stock worth $1,153,000 after buying an additional 2,345 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of ARM by 28.8% during the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after buying an additional 1,094 shares in the last quarter. Schnieders Capital Management LLC. boosted its holdings in shares of ARM by 9.0% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after buying an additional 200 shares in the last quarter. Bank of Nova Scotia purchased a new stake in shares of ARM in the 2nd quarter worth about $556,000. Finally, State Street Corp grew its position in shares of ARM by 14.7% in the 2nd quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after buying an additional 56,656 shares during the period. Institutional investors 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.