ARM (NASDAQ:ARM) Trading Down 6.2% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded down 6.2% during trading on Tuesday . The stock traded as low as $298.38 and last traded at $324.86. 13,312,342 shares were traded during trading, an increase of 54% from the average session volume of 8,643,357 shares. The stock had previously closed at $346.39.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Rosenblatt Securities lifted their price objective on shares of ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and boosted their target price for the company from $90.00 to $205.00 in a research report on Friday, March 20th. Raymond James Financial restated an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Finally, The Goldman Sachs Group boosted their target price on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research report on Thursday, May 7th. Twenty equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and a consensus price target of $230.04.

ARM Price Performance

The firm has a market cap of $346.98 billion, a PE ratio of 386.74, a PEG ratio of 12.45 and a beta of 3.77. The business’s 50 day moving average price is $228.47 and its 200 day moving average price is $159.59.

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

Insider Buying and Selling at ARM

In related news, insider William Abbey sold 6,566 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the sale, the insider owned 20,563 shares of the company’s stock, valued at approximately $8,281,131.36. This represents a 24.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the sale, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 301,338 shares of company stock worth $66,030,158 in the last 90 days.

Institutional Trading of ARM

Large investors have recently bought and sold shares of the business. Rathbones Group PLC boosted its position in shares of ARM by 4,638.8% during the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after purchasing an additional 489,491 shares during the period. Paragon Capital Management Inc. purchased a new position in shares of ARM during the 4th quarter worth approximately $826,000. Lansdowne Partners UK LLP purchased a new position in shares of ARM during the 3rd quarter worth approximately $8,486,000. Hyperion Asset Management Ltd purchased a new position in shares of ARM during the 3rd quarter worth approximately $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of ARM by 34.7% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock worth $2,644,000 after purchasing an additional 6,232 shares during the period. Hedge funds and other 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.