ARM (NASDAQ:ARM) Stock Price Down 5.4% – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 5.4% during mid-day trading on Wednesday . The stock traded as low as $304.11 and last traded at $307.43. 7,910,602 shares changed hands during trading, a decline of 8% from the average session volume of 8,636,422 shares. The stock had previously closed at $324.86.

Analysts Set New Price Targets

Several research firms recently issued reports on ARM. Jefferies Financial Group set a $290.00 target price on ARM in a research report on Thursday, May 21st. TD Cowen raised their price target on ARM from $165.00 to $265.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Wells Fargo & Company raised their price target on ARM from $255.00 to $410.00 and gave the company an “overweight” rating in a report on Monday, June 1st. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of ARM in a report on Thursday, May 7th. Twenty investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $230.04.

ARM Trading Down 5.4%

The firm has a market capitalization of $328.16 billion, a P/E ratio of 365.76, a price-to-earnings-growth ratio of 12.58 and a beta of 3.78. The firm has a 50 day moving average price of $232.08 and a 200-day moving average price of $160.91.

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

Insider Buying and Selling

In other news, CFO Jason Child sold 31,920 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at $39,470,517.28. This trade represents a 15.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the chief accounting officer directly 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 disclosure for this sale is available in the SEC filing. Insiders sold 301,338 shares of company stock valued at $66,030,158 over the last quarter.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of the business. Morgan Stanley lifted its stake in shares of ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after acquiring an additional 45,314 shares during the last quarter. Invesco Ltd. raised its position in ARM by 36.9% during the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after purchasing an additional 654,727 shares in the last quarter. Coatue Management LLC raised its position in ARM by 1.8% during the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after purchasing an additional 40,174 shares in the last quarter. Wellington Management Group LLP raised its position in ARM by 41.6% during the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after purchasing an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group raised its position in ARM by 11.0% during the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after purchasing an additional 187,035 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.