ARM (NASDAQ:ARM) Shares Down 3% – What’s Next?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) dropped 3% during trading on Thursday. The company traded as low as $224.55 and last traded at $228.77. 4,536,887 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 7,448,674 shares. The stock had previously closed at $235.90.

Analyst Ratings Changes

ARM has been the topic of a number of analyst reports. Piper Sandler assumed coverage on shares of ARM in a report on Wednesday, September 9th. They set an “overweight” rating and a $320.00 target price on the stock. UBS Group reduced their price target on shares of ARM from $360.00 to $320.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Wells Fargo & Company decreased their price target on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. KeyCorp increased their price objective on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research note on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, ARM has a consensus rating of “Moderate Buy” and a consensus target price of $303.32.

ARM Price Performance

The firm has a market capitalization of $219.99 billion, a PE ratio of 212.34, a P/E/G ratio of 6.78 and a beta of 3.78. The business’s 50 day moving average is $258.73 and its two-hundred day moving average is $227.92.

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

Insider Transactions at ARM

In related news, CFO Jason Child sold 10,400 shares of the company’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 completion of the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. The trade was a 6.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Several institutional investors have recently modified their holdings of the company. Rakuten Investment Management Inc. bought a new stake in shares of ARM in the 3rd quarter worth approximately $17,727,000. Provenance Wealth Advisors LLC purchased a new position in shares of ARM during the third quarter valued at approximately $522,000. Factory Mutual Insurance Co. raised its holdings in shares of ARM by 61.3% during the third quarter. Factory Mutual Insurance Co. now owns 17,900 shares of the company’s stock valued at $5,185,000 after acquiring an additional 6,800 shares in the last quarter. BOCHK Asset Management Ltd raised its holdings in shares of ARM by 205.0% during the third quarter. BOCHK Asset Management Ltd now owns 20,432 shares of the company’s stock valued at $5,918,000 after acquiring an additional 13,732 shares in the last quarter. Finally, Signature Equity Partners LLC lifted its stake in ARM by 89.1% in the third quarter. Signature Equity Partners LLC now owns 1,917 shares of the company’s stock worth $555,000 after acquiring an additional 903 shares during the period. 7.53% of the stock is currently owned by institutional investors.

About ARM

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.