ARM (NASDAQ:ARM) Stock Falls 3.1% – What’s Next?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) were down 3.1% on Tuesday. The stock traded as low as $217.26 and last traded at $221.06. Approximately 5,068,950 shares changed hands during trading, a decline of 33% from the average session volume of 7,566,435 shares. The stock had previously closed at $228.05.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ARM. HSBC cut shares of ARM from a “buy” rating to a “hold” rating and boosted their target price for the company from $255.00 to $315.00 in a research report on Tuesday, July 14th. Susquehanna lifted their price objective on shares of ARM from $300.00 to $320.00 and gave the stock a “positive” rating in a research note on Tuesday, July 21st. Rosenblatt Securities cut their price objective on shares of ARM from $270.00 to $250.00 and set a “buy” rating for the company in a report on Friday, July 31st. Morgan Stanley raised their target price on shares of ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Finally, TD Cowen dropped their price objective on ARM from $475.00 to $350.00 and set a “buy” rating for the company in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, ARM has an average rating of “Moderate Buy” and an average price target of $303.32.

ARM Trading Down 3.1%

The firm has a market capitalization of $236.11 billion, a price-to-earnings ratio of 227.90, a P/E/G ratio of 6.76 and a beta of 3.78. The firm’s 50-day moving average is $266.47 and its 200 day moving average is $270.79.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The business had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter last year, the firm earned $0.35 EPS. The firm’s revenue for the quarter was up 22.4% compared to the same quarter last year. Analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Buying and Selling at ARM

In other news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction that occurred on 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 directly owned 153,442 shares of the company’s stock, valued at $46,032,600. This represents a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of large investors have recently added to or reduced their stakes in ARM. Focus Financial Network Inc. grew its holdings in ARM by 0.9% during the third quarter. Focus Financial Network Inc. now owns 4,686 shares of the company’s stock valued at $1,357,000 after purchasing an additional 40 shares during the period. GAMMA Investing LLC raised its stake in shares of ARM by 18.7% in the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after buying an additional 64 shares during the period. Allworth Financial LP raised its stake in shares of ARM by 2.9% in the second quarter. Allworth Financial LP now owns 2,269 shares of the company’s stock worth $804,000 after buying an additional 65 shares during the period. MCF Advisors LLC lifted its position in shares of ARM by 11.7% during the 2nd quarter. MCF Advisors LLC now owns 764 shares of the company’s stock valued at $271,000 after buying an additional 80 shares in the last quarter. Finally, SteelPeak Wealth LLC lifted its position in shares of ARM by 11.0% during the 3rd quarter. SteelPeak Wealth LLC now owns 931 shares of the company’s stock valued at $270,000 after buying an additional 92 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.