ARM (NASDAQ:ARM) Trading Down 4.8% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price traded down 4.8% during trading on Wednesday . The company traded as low as $332.00 and last traded at $337.47. Approximately 5,033,808 shares traded hands during trading, a decline of 44% from the average daily volume of 8,975,592 shares. The stock had previously closed at $354.57.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ARM. The Goldman Sachs Group upped their target price on shares of ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research note on Thursday, May 7th. HSBC upgraded ARM from a “reduce” rating to a “buy” rating and boosted their price target for the company from $90.00 to $205.00 in a report on Friday, March 20th. UBS Group increased their price objective on ARM from $260.00 to $470.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Wells Fargo & Company boosted their target price on ARM from $255.00 to $410.00 and gave the company an “overweight” rating in a research note on Monday, June 1st. Finally, Sanford C. Bernstein set a $500.00 price target on ARM in a research report on Wednesday, June 17th. Nineteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, ARM has an average rating of “Moderate Buy” and an average target price of $279.83.

ARM Trading Down 4.8%

The stock’s 50 day moving average price is $299.29 and its 200 day moving average price is $186.28. The company has a market capitalization of $360.44 billion, a price-to-earnings ratio of 401.75, a P/E/G ratio of 12.48 and a beta of 3.78.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The company 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%. On average, research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current year.

Insider Transactions at ARM

In other ARM news, CFO Jason Child sold 31,920 shares of the business’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 transaction of $7,231,156.80. Following 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $209.15, for a total value of $5,090,501.85. Following the transaction, the insider directly owned 5,543 shares in the company, valued at $1,159,318.45. This trade represents a 81.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 248,205 shares of company stock valued at $57,741,572.

Institutional Trading of ARM

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