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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 3.9% during mid-day trading on Friday . The stock traded as low as $326.80 and last traded at $334.27. 7,669,443 shares changed hands during trading, a decline of 15% from the average session volume of 9,028,638 shares. The stock had previously closed at $347.71.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Bank of America upped their target price on ARM from $335.00 to $460.00 and gave the stock a “neutral” rating in a research note on Tuesday, June 23rd. Rosenblatt Securities lifted their price target on ARM from $175.00 to $270.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. TD Cowen boosted their price objective on ARM from $265.00 to $475.00 and gave the stock a “buy” rating in a report on Wednesday. Jefferies Financial Group set a $290.00 price objective on shares of ARM in a research report on Thursday, May 21st. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $400.00 target price on shares of ARM in a research note on Tuesday, June 16th. Nineteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and an average target price of $279.83.

ARM Stock Performance

The firm has a 50-day moving average of $291.90 and a 200-day moving average of $183.05. The firm has a market capitalization of $357.03 billion, a P/E ratio of 397.94, a price-to-earnings-growth ratio of 12.14 and a beta of 3.78.

ARM (NASDAQ:ARM) last announced its quarterly 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 during the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. Equities analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In other news, insider William Abbey sold 6,566 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the sale, the insider directly owned 20,563 shares of the company’s stock, valued at approximately $8,281,131.36. This represents a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Charlotte Claire Eaton sold 4,000 shares of ARM stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $282.77, for a total value of $1,131,080.00. Following the completion of the transaction, the insider directly owned 7,805 shares of the company’s stock, valued at approximately $2,207,019.85. This represents a 33.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 248,205 shares of company stock valued at $57,741,572 over the last 90 days.

Hedge Funds Weigh In On ARM

Hedge funds have recently bought and sold shares of the company. Morgan Stanley increased its stake in ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock valued at $413,521,000 after purchasing an additional 45,314 shares in the last quarter. Invesco Ltd. raised its holdings in ARM by 36.9% in the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after buying an additional 654,727 shares during the last quarter. Coatue Management LLC lifted its stake in shares of ARM by 1.8% in the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after buying an additional 40,174 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after buying an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group grew its holdings in shares of ARM by 11.0% during the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after buying an additional 187,035 shares during the last quarter. 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.