ARM (NASDAQ:ARM) Stock Falls 7.3% – What’s Next?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded down 7.3% during trading on Thursday. The stock traded as low as $208.30 and last traded at $210.10. 5,715,850 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 7,537,028 shares. The stock had previously closed at $226.59.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ARM. Morgan Stanley lifted their target price on shares of ARM from $202.00 to $212.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Rosenblatt Securities lowered their price target on shares of ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Piper Sandler started coverage on shares of ARM in a research report on Wednesday, September 9th. They set an “overweight” rating and a $320.00 price target on the stock. New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price on the stock in a research note on Thursday, July 30th. Finally, Needham & Company LLC restated a “buy” rating and set a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Trading Down 7.3%

The stock has a market cap of $224.40 billion, a PE ratio of 216.60, a price-to-earnings-growth ratio of 6.56 and a beta of 3.78. The business has a 50-day moving average price of $263.24 and a 200-day moving average price of $272.23.

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

Insider Activity at ARM

In other ARM news, CFO Jason Child sold 10,400 shares of the firm’s stock in a transaction on Monday, September 21st. The stock was 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 in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Focus Financial Network Inc. boosted its stake in ARM by 0.9% during the third quarter. Focus Financial Network Inc. now owns 4,686 shares of the company’s stock worth $1,357,000 after buying an additional 40 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of ARM by 18.7% during the 2nd quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock valued at $144,000 after acquiring an additional 64 shares during the last quarter. Allworth Financial LP grew its holdings in shares of ARM by 2.9% in the second quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock valued at $804,000 after purchasing an additional 65 shares during the period. MCF Advisors LLC grew its holdings in shares of ARM by 11.7% in the second quarter. MCF Advisors LLC now owns 764 shares of the company’s stock valued at $271,000 after purchasing an additional 80 shares during the period. Finally, SteelPeak Wealth LLC increased its position in ARM by 11.0% during the third quarter. SteelPeak Wealth LLC now owns 931 shares of the company’s stock worth $270,000 after purchasing an additional 92 shares during the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.