ARM (NASDAQ:ARM) Trading Down 2.9% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 2.9% on Monday . The stock traded as low as $271.28 and last traded at $271.43. Approximately 3,535,003 shares were traded during trading, a decline of 57% from the average session volume of 8,303,648 shares. The stock had previously closed at $279.44.

Wall Street Analysts Forecast Growth

ARM has been the subject of several recent research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a report on Friday, July 17th. Raymond James Financial reaffirmed an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. KeyCorp lifted their price objective on shares of ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a research note on Tuesday, July 14th. Sanford C. Bernstein set a $500.00 price target on ARM in a research report on Wednesday, June 17th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $255.00 price target on shares of ARM in a research note on Thursday, July 30th. Eighteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, ARM has a consensus rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Price Performance

The stock has a market cap of $289.91 billion, a price-to-earnings ratio of 279.83, a P/E/G ratio of 8.29 and a beta of 3.91. The stock’s 50 day simple moving average is $311.67 and its two-hundred day simple moving average is $225.09.

ARM (NASDAQ:ARM) last posted its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.ARM’s revenue was up 22.4% on a year-over-year basis. During the same quarter last year, the company earned $0.35 EPS. As a group, analysts predict that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Jason Child sold 31,920 shares of the firm’s stock in a transaction 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 in the company, valued at approximately $39,470,517.28. This trade represents a 15.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charlotte Claire Eaton sold 7,805 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the sale, the insider directly owned 5,000 shares in the company, valued at $1,450,050. This trade represents a 60.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 132,749 shares of company stock worth $34,521,551 over the last ninety days.

Institutional Investors Weigh In On ARM

Hedge funds have recently bought and sold shares of the company. Syntax Research Inc. bought a new stake in shares of ARM during the first quarter worth $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM during the 1st quarter worth approximately $30,000. Mcguire Capital Advisors Inc. acquired a new position in ARM during the fourth quarter worth $30,000. Navalign LLC bought a new stake in shares of ARM in the 4th quarter valued at about $33,000. Finally, FWL Investment Management LLC bought a new stake in ARM in the second quarter valued at approximately $34,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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.