ARM (NASDAQ:ARM) Shares Down 3.9% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price dropped 3.9% during trading on Tuesday . The stock traded as low as $395.88 and last traded at $396.34. Approximately 12,319,173 shares traded hands during mid-day trading, an increase of 40% from the average daily volume of 8,781,748 shares. The stock had previously closed at $412.55.

Analysts Set New Price Targets

ARM has been the topic of several analyst reports. Morgan Stanley restated an “equal weight” rating and issued a $150.00 price target (up from $135.00) on shares of ARM in a research note on Tuesday, April 7th. Rosenblatt Securities raised their price target 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. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of ARM in a research note on Thursday, May 7th. Jefferies Financial Group set a $290.00 price target on shares of ARM in a research note on Thursday, May 21st. Finally, TD Cowen raised their price target on shares of ARM from $165.00 to $265.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Twenty investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, ARM currently has a consensus rating of “Moderate Buy” and an average target price of $245.04.

ARM Stock Performance

The firm’s 50-day moving average price is $249.09 and its two-hundred day moving average price is $167.34. The firm has a market capitalization of $423.28 billion, a price-to-earnings ratio of 471.79, a price-to-earnings-growth ratio of 13.83 and a beta of 3.77.

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

Insider Buying and Selling

In other ARM news, insider Richard Roy Grisenthwaite sold 24,339 shares of the company’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 value of $5,090,501.85. Following the completion of the sale, the insider owned 5,543 shares of the company’s stock, valued at $1,159,318.45. This represents a 81.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 301,338 shares of company stock valued at $66,030,158 in the last 90 days.

Institutional Trading of ARM

Hedge funds and other institutional investors have recently bought and sold shares of the company. Amundi lifted its holdings in shares of ARM by 24.8% in the 1st quarter. Amundi now owns 11,804 shares of the company’s stock worth $1,153,000 after buying an additional 2,345 shares during the period. Empowered Funds LLC grew its holdings in ARM by 28.8% during 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. grew its holdings in ARM by 9.0% during 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 acquired a new stake in ARM during the second quarter worth about $556,000. Finally, State Street Corp grew its holdings in ARM by 14.7% during the second 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 period. Hedge funds and other 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.