ARM (NASDAQ:ARM) Trading Down 8.5% – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded down 8.5% during trading on Monday . The stock traded as low as $294.06 and last traded at $295.97. 1,272,694 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 8,775,856 shares. The stock had previously closed at $323.39.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Rosenblatt Securities boosted their price target on shares of ARM from $175.00 to $270.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $150.00 price objective (up from $135.00) on shares of ARM in a research note on Tuesday, April 7th. Mizuho lifted their price objective on shares of ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. The Goldman Sachs Group lifted their price objective on shares of ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a research note on Thursday, May 7th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $279.83.

ARM Price Performance

The firm has a market capitalization of $322.65 billion, a price-to-earnings ratio of 360.96, a PEG ratio of 11.74 and a beta of 3.76. The firm’s fifty day moving average is $318.07 and its 200 day moving average is $197.37.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The firm had revenue of $1.49 billion for the quarter. Equities research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In other news, insider William Abbey sold 10,887 shares of the company’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $224.14, for a total value of $2,440,212.18. Following the transaction, the insider directly owned 43,353 shares of the company’s stock, valued at approximately $9,717,141.42. This represents a 20.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider directly owned 5,543 shares in the company, valued at $1,159,318.45. This trade represents a 81.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 248,205 shares of company stock worth $57,741,572 over the last 90 days.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Rathbones Group PLC lifted its holdings in shares of ARM by 4,638.8% during the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock valued at $54,660,000 after buying an additional 489,491 shares during the last quarter. Paragon Capital Management Inc. acquired a new position in ARM in the fourth quarter worth approximately $826,000. Lansdowne Partners UK LLP acquired a new position in ARM in the third quarter worth approximately $8,486,000. Hyperion Asset Management Ltd bought a new position in ARM during the third quarter valued at approximately $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its position in ARM by 34.7% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after acquiring an additional 6,232 shares in the last quarter. 7.53% of the stock is owned by institutional investors and hedge funds.

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.