ARM (NASDAQ:ARM) Trading Down 1.4% – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares fell 1.4% during trading on Friday . The stock traded as low as $275.00 and last traded at $282.57. Approximately 3,814,412 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 8,499,154 shares. The stock had previously closed at $286.68.

Analyst Upgrades and Downgrades

Several research firms have recently commented on ARM. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research report on Friday, July 17th. The Goldman Sachs Group upped their price objective on ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research note on Thursday, May 7th. Raymond James Financial reaffirmed an “outperform” rating on shares of ARM in a report on Thursday, May 7th. Finally, Royal Bank Of Canada reduced their price target on ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. Eighteen 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. Based on data from MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and an average price target of $285.33.

ARM Trading Down 1.4%

The stock’s fifty day moving average price is $324.94 and its 200 day moving average price is $218.25. The stock has a market cap of $301.81 billion, a P/E ratio of 291.31, a price-to-earnings-growth ratio of 8.14 and a beta of 3.90.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 return on equity of 12.24% and a net margin of 20.25%.The company’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.35 EPS. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. On average, analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Buying and Selling at ARM

In other news, insider William Abbey sold 6,566 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the transaction, the insider owned 20,563 shares in the company, valued at approximately $8,281,131.36. This trade represents a 24.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Charlotte Claire Eaton sold 7,805 shares of the firm’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the completion of the sale, the insider directly owned 5,000 shares in the company, valued at approximately $1,450,050. This trade represents a 60.95% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 216,049 shares of company stock valued at $52,101,605.

Hedge Funds Weigh In On ARM

Hedge funds have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. grew its position in ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after purchasing an additional 1,610,403 shares during the last quarter. Employees Provident Fund Board purchased a new stake in ARM during the 4th quarter valued at $120,241,000. Arrowstreet Capital Limited Partnership lifted its holdings in 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 acquiring an additional 872,644 shares during the period. Janus Henderson Group PLC bought a new position in shares of ARM in the 1st quarter worth approximately $116,112,000. Finally, SG Americas Securities LLC raised its position in ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after acquiring an additional 705,459 shares during the period. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.