ARM (NASDAQ:ARM) Stock Falls 10% – Time to Sell?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded down 10% during mid-day trading on Friday. The stock traded as low as $198.77 and last traded at $205.97. Approximately 10,401,548 shares were traded during trading, an increase of 39% from the average session volume of 7,463,668 shares. The stock had previously closed at $228.77.

Wall Street Analyst Weigh In

ARM has been the subject of a number of research reports. Guggenheim reiterated a “buy” rating and issued a $255.00 price objective on shares of ARM in a research note on Thursday, July 30th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Thursday, October 15th. Royal Bank Of Canada dropped their target price on shares of ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a report on Thursday, July 30th. Raymond James Financial reaffirmed an “outperform” rating and set a $166.00 price target on shares of ARM in a research note on Tuesday, August 25th. Finally, Susquehanna upped their target price on ARM from $300.00 to $320.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, ARM currently has a consensus rating of “Moderate Buy” and an average price target of $303.32.

ARM Trading Down 10.0%

The business has a 50 day simple moving average of $258.73 and a two-hundred day simple moving average of $227.92. The company has a market cap of $219.99 billion, a PE ratio of 212.34, a price-to-earnings-growth ratio of 6.11 and a beta of 3.78.

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

Insider Buying and Selling at ARM

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 transaction of $3,120,000.00. Following the completion of the sale, the chief financial officer directly owned 153,442 shares of the company’s stock, valued at $46,032,600. The trade was a 6.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ARM. Rakuten Investment Management Inc. acquired a new stake in shares of ARM during the third quarter worth $17,727,000. Provenance Wealth Advisors LLC acquired a new position in shares of ARM in the 3rd quarter valued at about $522,000. Factory Mutual Insurance Co. boosted its holdings in shares of ARM by 61.3% in the 3rd quarter. Factory Mutual Insurance Co. now owns 17,900 shares of the company’s stock valued at $5,185,000 after buying an additional 6,800 shares during the period. BOCHK Asset Management Ltd boosted its holdings in shares of ARM by 205.0% in the 3rd quarter. BOCHK Asset Management Ltd now owns 20,432 shares of the company’s stock valued at $5,918,000 after buying an additional 13,732 shares during the period. Finally, Signature Equity Partners LLC grew its position in shares of ARM by 89.1% during the 3rd quarter. Signature Equity Partners LLC now owns 1,917 shares of the company’s stock valued at $555,000 after buying an additional 903 shares during the last quarter. 7.53% of the stock is owned by hedge funds and other 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.