ARM (NASDAQ:ARM) Shares Down 3.2% – Should You Sell?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 3.2% during mid-day trading on Thursday . The company traded as low as $339.52 and last traded at $347.71. Approximately 8,302,772 shares were traded during trading, a decline of 8% from the average daily volume of 9,045,798 shares. The stock had previously closed at $359.08.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Bank of America raised their target price on ARM from $335.00 to $460.00 and gave the stock a “neutral” rating in a report on Tuesday. Barclays upped 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. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. UBS Group lifted their price objective on ARM from $260.00 to $470.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Raymond James Financial reiterated an “outperform” 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 given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $279.83.

ARM Trading Down 3.9%

The company has a market cap of $357.03 billion, a PE ratio of 397.94, a PEG ratio of 12.63 and a beta of 3.78. The business’s 50 day moving average is $291.90 and its two-hundred day moving average is $183.05.

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

Insiders Place Their Bets

In related news, insider Charlotte Claire Eaton sold 4,000 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $282.77, for a total value of $1,131,080.00. Following the transaction, the insider directly owned 7,805 shares of the company’s stock, valued at approximately $2,207,019.85. The trade was a 33.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Jason Child sold 31,920 shares of the company’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 transaction, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 248,205 shares of company stock worth $57,741,572 over the last quarter.

Hedge Funds Weigh In On ARM

Several institutional investors have recently bought and sold shares of ARM. Capital Research Global Investors purchased a new stake in ARM in the 3rd quarter worth $243,098,000. Northwestern Mutual Wealth Management Co. grew its position in shares of ARM by 2,623.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock valued at $182,743,000 after purchasing an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd bought a new stake in shares of ARM in the third quarter worth about $202,980,000. Employees Provident Fund Board bought a new stake in shares of ARM in the fourth quarter worth about $120,241,000. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after buying an additional 872,644 shares in the last quarter. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.