UBS Group Issues Pessimistic Forecast for ARM (NASDAQ:ARM) Stock Price

ARM (NASDAQ:ARM) had its price objective cut by equities research analysts at UBS Group from $470.00 to $360.00 in a report released on Monday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. UBS Group’s target price would indicate a potential upside of 32.79% from the stock’s previous close.

Several other research analysts also recently commented on ARM. Barclays boosted their target price on ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research note on Monday, June 1st. The Goldman Sachs Group lifted their price target on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a report on Thursday, May 7th. Rosenblatt Securities increased their price objective on shares of ARM from $175.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. HSBC lowered shares of ARM from a “buy” rating to a “hold” rating and raised their target price for the company from $255.00 to $315.00 in a research report on Tuesday, July 14th. Finally, Guggenheim upped their price target on shares of ARM from $240.00 to $255.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Seventeen investment 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, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $295.48.

ARM Trading Up 1.5%

NASDAQ ARM traded up $3.92 on Monday, hitting $271.11. 2,105,882 shares of the company’s stock were exchanged, compared to its average volume of 8,740,486. The stock has a 50-day moving average of $324.14 and a 200-day moving average of $203.22. The stock has a market cap of $289.56 billion, a price-to-earnings ratio of 323.09, a P/E/G ratio of 9.70 and a beta of 3.76. ARM has a 52 week low of $100.02 and a 52 week high of $452.70.

ARM (NASDAQ:ARM) last issued its quarterly earnings results 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 for the quarter. As a group, analysts predict that ARM will post 1.12 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Jason Child sold 31,920 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the transaction, the chief financial officer owned 174,232 shares in the company, valued at approximately $39,470,517.28. The trade was a 15.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider owned 5,543 shares in the company, valued at $1,159,318.45. This trade represents a 81.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 238,906 shares of company stock valued at $56,245,828 over the last 90 days.

Hedge Funds Weigh In On ARM

Hedge funds have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. lifted its position in shares of 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 acquiring an additional 1,610,403 shares during the period. Employees Provident Fund Board acquired a new stake in ARM in the fourth quarter worth $120,241,000. Arrowstreet Capital Limited Partnership increased its stake 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 purchasing an additional 872,644 shares in the last quarter. Janus Henderson Group PLC bought a new stake in ARM in the first quarter valued at $116,112,000. Finally, SG Americas Securities LLC raised its holdings in shares of ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock valued at $146,903,000 after purchasing an additional 705,459 shares during the period. Institutional investors own 7.53% of the company’s stock.

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.