Insider Selling: ARM (NASDAQ:ARM) CEO Sells $3,846,644.39 in Stock

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) CEO Rene Haas sold 23,867 shares of the firm’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares in the company, valued at $46,894,829.05. The trade was a 7.58% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website.

ARM Stock Down 5.0%

ARM stock opened at $136.96 on Tuesday. The company has a fifty day simple moving average of $123.10 and a 200-day simple moving average of $134.04. The firm has a market capitalization of $144.70 billion, a price-to-earnings ratio of 182.61, a PEG ratio of 9.10 and a beta of 4.10. ARM Holdings PLC Sponsored ADR has a 52-week low of $80.00 and a 52-week high of $183.16.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.02. The firm had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company’s revenue for the quarter was up 26.3% on a year-over-year basis. During the same period last year, the firm posted $0.39 earnings per share. On average, research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

ARM has been the topic of several recent research reports. JPMorgan Chase & Co. lowered their target price on ARM from $180.00 to $145.00 and set an “overweight” rating on the stock in a report on Thursday, February 5th. Raymond James Financial raised ARM from a “market perform” rating to an “outperform” rating and set a $166.00 price target for the company in a report on Wednesday, March 25th. Evercore lowered their price objective on ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a research note on Thursday, February 5th. Deutsche Bank Aktiengesellschaft upped their target price on ARM from $125.00 to $140.00 and gave the company a “hold” rating in a report on Wednesday, March 25th. Finally, Citigroup downgraded ARM from a “buy” rating to a “hold” rating in a research note on Tuesday, January 13th. Nineteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $168.17.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ARM. Capital Research Global Investors acquired a new stake in ARM during the third quarter worth $243,098,000. Northwestern Mutual Wealth Management Co. raised its position in ARM by 2,623.5% in 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 during the period. Hyperion Asset Management Ltd acquired a new position in shares of ARM in the 3rd quarter valued at $202,980,000. Schroder Investment Management Group lifted its stake in shares of ARM by 41.7% in the 2nd quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock valued at $767,611,000 after purchasing an additional 1,396,684 shares during the last quarter. Finally, Employees Provident Fund Board purchased a new position in shares of ARM during the 4th quarter worth $120,241,000. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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.