ARM (NASDAQ:ARM) Stock Price Down 5.8% Following Insider Selling

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) dropped 5.8% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $300.88 and last traded at $302.71. Approximately 9,255,650 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 8,209,224 shares. The stock had previously closed at $321.22.

Specifically, insider William Abbey sold 2,300 shares of ARM stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $305.82, for a total value of $703,386.00. Following the sale, the insider directly owned 31,329 shares of the company’s stock, valued at approximately $9,581,034.78. The trade was a 6.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charlotte Claire Eaton sold 7,805 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total value of $2,263,528.05. Following the transaction, the insider directly owned 5,000 shares of the company’s stock, valued at approximately $1,450,050. The trade was a 60.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other news, insider William Abbey sold 4,655 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $287.03, for a total transaction of $1,336,124.65. Following the sale, the insider directly owned 33,629 shares of the company’s stock, valued at $9,652,531.87. This represents a 12.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Analyst Ratings Changes

ARM has been the topic of several research reports. Mizuho boosted their price target on shares of ARM from $230.00 to $255.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 6th. Guggenheim boosted their target price on shares of ARM from $240.00 to $255.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Raymond James Financial reaffirmed an “outperform” rating on shares of ARM in a report on Thursday, May 7th. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. Finally, The Goldman Sachs Group raised their price objective on ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research note on Thursday, May 7th. Twenty research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $208.79.

ARM Stock Performance

The company has a market capitalization of $319.82 billion, a P/E ratio of 360.37, a P/E/G ratio of 11.13 and a beta of 3.40. The firm’s fifty day moving average is $186.99 and its 200 day moving average is $145.67.

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

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of ARM. Rathbones Group PLC increased its stake in ARM by 4,638.8% in the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after buying an additional 489,491 shares during the period. Paragon Capital Management Inc. purchased a new stake in ARM in the 4th quarter valued at about $826,000. Lansdowne Partners UK LLP bought a new position in ARM in the 3rd quarter worth about $8,486,000. Hyperion Asset Management Ltd purchased a new position in shares of ARM during the third quarter worth approximately $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of 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.

ARM Company Profile

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.