ARM (NASDAQ:ARM) Stock Price Down 1.5% – Should You Sell?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded down 1.5% during mid-day trading on Monday. The stock traded as low as $299.80 and last traded at $302.90. 2,880,113 shares changed hands during trading, a decline of 63% from the average daily volume of 7,714,879 shares. The stock had previously closed at $307.49.

Analyst Ratings Changes

Several research analysts have recently commented on ARM shares. Benchmark initiated coverage on ARM in a research note on Thursday, July 16th. They issued a “hold” rating on the stock. Wells Fargo & Company reduced their target price on shares of ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Piper Sandler assumed coverage on shares of ARM in a research note on Wednesday, September 9th. They set an “overweight” rating and a $320.00 target price on the stock. HSBC cut shares of ARM from a “buy” rating to a “hold” rating and raised their target price for the stock from $255.00 to $315.00 in a research note on Tuesday, July 14th. Finally, Royal Bank Of Canada dropped their price target on shares of ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, ARM currently has an average rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Stock Down 0.1%

The business has a 50 day moving average price of $267.54 and a two-hundred day moving average price of $263.70. The stock has a market cap of $323.16 billion, a P/E ratio of 311.92, a price-to-earnings-growth ratio of 8.98 and a beta of 3.78.

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

Insider Activity

In other news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of institutional investors and hedge funds have recently bought and sold shares of ARM. Syntax Research Inc. bought a new position in shares of ARM during the 1st quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd bought a new stake in shares of ARM in the first quarter worth about $30,000. Allied Private Wealth LLC bought a new stake in shares of ARM in the second quarter worth about $71,000. CX Institutional purchased a new stake in shares of ARM in the third quarter worth about $58,000. Finally, Cassaday & Co Wealth Management LLC bought a new position in ARM during the first quarter valued at approximately $40,000. 7.53% of the stock is currently owned by institutional investors.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.