ARM (NASDAQ:ARM) Stock Price Down 1.6% – Time to Sell?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) were down 1.6% during trading on Wednesday . The stock traded as low as $241.50 and last traded at $249.34. 4,298,079 shares changed hands during trading, a decline of 48% from the average daily volume of 8,267,252 shares. The stock had previously closed at $253.32.

Analysts Set New Price Targets

Several research analysts have issued reports on ARM shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a report on Friday, July 17th. KeyCorp raised their price target on shares of ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Morgan Stanley boosted their price objective on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. UBS Group lowered their price objective on ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $255.00 target price on shares of ARM in a research note on Thursday, July 30th. Eighteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Stock Performance

The business’s fifty day moving average price is $308.74 and its 200-day moving average price is $227.21. The stock has a market cap of $266.32 billion, a PE ratio of 257.05, a P/E/G ratio of 8.29 and a beta of 3.91.

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. The firm had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.35 earnings per share. Analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Activity

In related news, insider William Abbey sold 6,566 shares of ARM stock in a transaction on Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider owned 20,563 shares of the company’s stock, valued at $8,281,131.36. The trade was a 24.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Charlotte Claire Eaton sold 7,805 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total value of $2,263,528.05. Following the sale, the insider owned 5,000 shares of the company’s stock, valued at approximately $1,450,050. This trade represents a 60.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 40,832 shares of company stock valued at $13,962,246 in the last ninety days.

Hedge Funds Weigh In On ARM

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