ARM (NASDAQ:ARM) Stock Price Down 4.6% – Should You Sell?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) was down 4.6% on Friday. The stock traded as low as $180.50 and last traded at $190.53. Approximately 5,464,972 shares changed hands during trading, a decline of 26% from the average daily volume of 7,430,782 shares. The stock had previously closed at $199.78.

Analyst Ratings Changes

A number of analysts have issued reports on the company. UBS Group decreased their target price on ARM from $320.00 to $270.00 and set a “buy” rating for the company in a research report on Thursday, November 5th. Benchmark began coverage on ARM in a research note on Thursday, July 16th. They set a “hold” rating for the company. Raymond James Financial reissued an “outperform” rating and issued a $166.00 price objective on shares of ARM in a report on Tuesday, August 25th. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective on the stock in a research note on Thursday, July 30th. Finally, Needham & Company LLC restated a “buy” rating and issued a $255.00 price objective on shares of ARM in a research note on Thursday, November 5th. Eighteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued 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 $296.38.

ARM Trading Down 4.6%

The company has a market capitalization of $203.50 billion, a P/E ratio of 219.00, a P/E/G ratio of 5.87 and a beta of 3.93. The company’s fifty day moving average is $249.19 and its 200 day moving average is $231.46.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.04. ARM had a net margin of 17.13% and a return on equity of 11.57%. The business had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.38 billion. During the same quarter in the previous year, the firm posted $0.39 EPS. The business’s revenue for the quarter was up 27.1% compared to the same quarter last year. Equities research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.11 EPS for the current year.

Insider Buying and Selling

In related news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction that occurred 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 sale, the chief financial officer owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. This represents a 6.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Several institutional investors and hedge funds have recently modified their holdings of the business. Focus Financial Network Inc. lifted its stake in shares of ARM by 0.9% in the 3rd quarter. Focus Financial Network Inc. now owns 4,686 shares of the company’s stock valued at $1,357,000 after acquiring an additional 40 shares during the last quarter. GAMMA Investing LLC raised its holdings in ARM by 18.7% in the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after purchasing an additional 64 shares in the last quarter. Allworth Financial LP lifted its position in ARM by 2.9% during the 2nd quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock valued at $804,000 after acquiring an additional 65 shares during the period. Silver Grove Financial Group Inc. lifted its position in ARM by 47.2% during the 3rd quarter. Silver Grove Financial Group Inc. now owns 209 shares of the company’s stock valued at $61,000 after acquiring an additional 67 shares during the period. Finally, MCF Advisors LLC boosted its stake in ARM by 11.7% during the second quarter. MCF Advisors LLC now owns 764 shares of the company’s stock worth $271,000 after acquiring an additional 80 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them. Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.