ARM (NASDAQ:ARM) Shares Down 6.3% – What’s Next?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares dropped 6.3% during trading on Friday . The stock traded as low as $238.66 and last traded at $239.05. 3,833,954 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 8,075,034 shares. The stock had previously closed at $255.21.

Wall Street Analysts Forecast Growth

ARM has been the subject of several research analyst reports. The Goldman Sachs Group lifted their price objective on ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research report on Thursday, May 7th. TD Cowen reduced their price objective on ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. HSBC downgraded ARM from a “buy” rating to a “hold” rating and boosted their target price for the stock from $255.00 to $315.00 in a research report on Tuesday, July 14th. Rosenblatt Securities decreased their price target on ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Finally, Guggenheim reissued a “buy” rating and set a $255.00 price objective on shares of ARM in a report on Thursday, July 30th. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $305.12.

ARM Stock Performance

The company has a market capitalization of $255.32 billion, a price-to-earnings ratio of 246.45, a price-to-earnings-growth ratio of 7.44 and a beta of 3.90. The company has a 50-day moving average price of $289.39 and a 200-day moving average price of $234.00.

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

Insider Activity at ARM

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of the business’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the sale, the chief accounting officer owned 12,135 shares of the company’s stock, valued at $4,765,414.50. The trade was a 48.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider William Abbey sold 6,566 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the transaction, the insider owned 20,563 shares of the company’s stock, valued at $8,281,131.36. The trade was a 24.20% decrease in their position. The SEC filing for this sale provides additional information.

Hedge Funds Weigh In On ARM

A number of large investors have recently modified their holdings of ARM. Syntax Research Inc. acquired a new stake in shares of ARM in the first quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM during the 1st quarter worth approximately $30,000. Mcguire Capital Advisors Inc. bought a new stake in shares of ARM during the 4th quarter worth approximately $30,000. Navalign LLC acquired a new stake in shares of ARM in the 4th quarter valued at approximately $33,000. Finally, FWL Investment Management LLC bought a new position in shares of ARM in the second quarter valued at $34,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

Arm Holdings (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.