ARM (NASDAQ:ARM) Trading Down 7.2% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price dropped 7.2% during trading on Monday . The stock traded as low as $401.95 and last traded at $407.72. 9,337,369 shares traded hands during trading, an increase of 3% from the average daily volume of 9,037,244 shares. The stock had previously closed at $439.46.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. HSBC raised ARM from a “reduce” rating to a “buy” rating and boosted their target price for the stock from $90.00 to $205.00 in a report on Friday, March 20th. The Goldman Sachs Group increased their target price on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research note on Thursday, May 7th. 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. Finally, Barclays lifted their price target on ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research report on Monday, June 1st. Nineteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and an average price target of $253.38.

ARM Trading Down 7.2%

The firm has a fifty day moving average of $271.16 and a 200 day moving average of $175.50. The company has a market capitalization of $435.48 billion, a P/E ratio of 485.38, a P/E/G ratio of 15.96 and a beta of 3.77.

ARM (NASDAQ:ARM) last posted its earnings results 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 for the quarter. Sell-side analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the transaction, the insider owned 51,125 shares in the company, valued at $10,824,696.25. This trade represents a 50.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the sale, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. The trade was a 7.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 301,338 shares of company stock valued at $66,030,158 in the last 90 days.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ARM. Compound Planning Inc. raised its position in shares of ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock valued at $222,000 after buying an additional 69 shares in the last quarter. Rathbones Group PLC grew its position in ARM by 0.7% in the third quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock worth $1,493,000 after acquiring an additional 70 shares in the last quarter. Kovack Advisors Inc. increased its stake in ARM by 2.0% during the third quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock worth $510,000 after acquiring an additional 72 shares during the last quarter. CreativeOne Wealth LLC increased its stake in ARM by 5.0% during the fourth quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock worth $200,000 after acquiring an additional 87 shares during the last quarter. Finally, AdvisorNet Financial Inc raised its position in ARM by 6.2% during the first quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock valued at $254,000 after purchasing an additional 98 shares during the period. Institutional investors own 7.53% of the company’s stock.

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.