ARM (NASDAQ:ARM) Trading Down 7.9% – Should You Sell?

Shares of Arm Holdings plc (NASDAQ:ARM) dropped 7.9% on Thursday . The company traded as low as $162.50 and last traded at $165.80. Approximately 9,814,471 shares changed hands during trading, an increase of 48% from the average daily volume of 6,635,503 shares. The stock had previously closed at $179.93.

Analyst Ratings Changes

ARM has been the subject of a number of analyst reports. Evercore ISI raised their price objective on ARM from $173.00 to $176.00 and gave the company an “outperform” rating in a research report on Thursday, November 7th. Sanford C. Bernstein lowered ARM from a “market perform” rating to an “underperform” rating and set a $100.00 target price for the company. in a report on Thursday, October 31st. Loop Capital lifted their target price on ARM from $130.00 to $180.00 and gave the stock a “buy” rating in a report on Monday, November 11th. The Goldman Sachs Group lifted their price objective on ARM from $144.00 to $159.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Finally, Barclays lifted their target price on ARM from $145.00 to $155.00 and gave the company an “overweight” rating in a research report on Friday, January 17th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, eighteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, ARM currently has an average rating of “Moderate Buy” and an average price target of $152.09.

ARM Stock Performance

The firm has a market capitalization of $173.06 billion, a PE ratio of 275.27, a price-to-earnings-growth ratio of 7.25 and a beta of 4.53. The firm’s 50 day moving average price is $138.72 and its 200-day moving average price is $141.01.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, November 6th. The company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. The business had revenue of $844.00 million for the quarter, compared to analyst estimates of $810.03 million. ARM had a net margin of 18.13% and a return on equity of 13.69%. The business’s revenue was up 4.7% on a year-over-year basis. During the same period last year, the company posted $0.36 EPS. On average, equities research analysts expect that Arm Holdings plc will post 0.84 earnings per share for the current fiscal year.

Institutional Trading of ARM

Institutional investors have recently added to or reduced their stakes in the stock. Smith Group Asset Management LLC purchased a new stake in shares of ARM during the 4th quarter worth $2,961,000. R Squared Ltd acquired a new position in ARM in the fourth quarter valued at $130,000. Perigon Wealth Management LLC increased its stake in ARM by 35.3% in the fourth quarter. Perigon Wealth Management LLC now owns 9,857 shares of the company’s stock valued at $1,216,000 after purchasing an additional 2,570 shares during the period. Cherry Creek Investment Advisors Inc. increased its stake in ARM by 121.2% in the fourth quarter. Cherry Creek Investment Advisors Inc. now owns 4,840 shares of the company’s stock valued at $597,000 after purchasing an additional 2,652 shares during the period. Finally, Pacer Advisors Inc. increased its stake in shares of ARM by 5.0% during the fourth quarter. Pacer Advisors Inc. now owns 7,532 shares of the company’s stock worth $929,000 after acquiring an additional 362 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.