ARM (NASDAQ:ARM) Stock Price Down 1.8% – Time to Sell?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price dropped 1.8% during mid-day trading on Thursday. The company traded as low as $190.00 and last traded at $199.78. Approximately 3,941,386 shares were traded during trading, a decline of 47% from the average session volume of 7,439,673 shares. The stock had previously closed at $203.36.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Wells Fargo & Company reduced their price objective on shares of ARM from $280.00 to $255.00 and set an “overweight” rating on the stock in a report on Thursday, November 5th. Morgan Stanley increased their target price on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Barclays dropped their price target on shares of ARM from $360.00 to $325.00 and set an “overweight” rating for the company in a research report on Thursday, November 5th. Benchmark started coverage on shares of ARM in a research note on Thursday, July 16th. They issued a “hold” rating on the stock. Finally, New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective on the stock in a report on Thursday, July 30th. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $296.38.

ARM Price Performance

The firm has a market capitalization of $213.38 billion, a price-to-earnings ratio of 229.63, a PEG ratio of 4.81 and a beta of 3.93. The firm has a 50 day moving average price of $249.89 and a 200-day moving average price of $231.04.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.48 by $0.04. ARM had a return on equity of 11.57% and a net margin of 17.13%. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.38 billion. During the same period in the previous year, the firm posted $0.39 EPS. ARM’s revenue for the quarter was up 27.1% on a year-over-year basis. Equities research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.21 earnings per share for the current year.

Insider Activity

In other news, CFO Jason Child sold 10,400 shares of ARM stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the transaction, the chief financial officer owned 153,442 shares in the company, valued at approximately $46,032,600. This trade represents a 6.35% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of large investors have recently made changes to their positions in the company. Hyperion Asset Management Ltd raised its holdings in ARM by 36.9% in the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock valued at $210,662,000 after acquiring an additional 195,942 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in ARM in the third quarter worth approximately $179,998,000. First Trust Advisors LP lifted its stake in ARM by 55.5% in the third quarter. First Trust Advisors LP now owns 543,774 shares of the company’s stock worth $157,509,000 after acquiring an additional 194,147 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in ARM by 1,203.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after acquiring an additional 872,644 shares in the last quarter. Finally, ProShare Advisors LLC grew its holdings in ARM by 2.2% during the 3rd quarter. ProShare Advisors LLC now owns 421,817 shares of the company’s stock worth $122,184,000 after acquiring an additional 9,242 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them. Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.