ARM (NASDAQ:ARM) Trading Down 6.2% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price dropped 6.2% during mid-day trading on Tuesday . The company traded as low as $298.38 and last traded at $324.86. Approximately 13,312,342 shares were traded during trading, an increase of 54% from the average daily volume of 8,643,357 shares. The stock had previously closed at $346.39.

Analyst Ratings Changes

ARM has been the topic of a number of research reports. Needham & Company LLC increased their target price on shares of ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Susquehanna increased their target price on shares of ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a report on Thursday, April 16th. Jefferies Financial Group set a $290.00 target price on shares of ARM in a report on Thursday, May 21st. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and increased their target price for the stock from $90.00 to $205.00 in a report on Friday, March 20th. Finally, Wells Fargo & Company increased their target price on shares of ARM from $255.00 to $410.00 and gave the stock an “overweight” rating in a report on Monday, June 1st. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $230.04.

ARM Trading Down 6.2%

The stock’s fifty day moving average price is $228.47 and its two-hundred day moving average price is $159.59. The firm has a market capitalization of $346.98 billion, a price-to-earnings ratio of 386.74, a price-to-earnings-growth ratio of 12.45 and a beta of 3.77.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The business had revenue of $1.49 billion for the quarter. Analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insider Transactions at ARM

In other news, CFO Jason Child sold 31,920 shares of the business’s stock in a transaction dated 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 sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at approximately $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 accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 23,867 shares of the business’s stock in a transaction dated 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 sale, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at $46,894,829.05. The trade was a 7.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 301,338 shares of company stock worth $66,030,158.

Institutional Trading of ARM

Several institutional investors and hedge funds have recently made changes to their positions in the company. Pine Valley Investments Ltd Liability Co lifted its holdings in shares of ARM by 3.5% in the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 11,339 shares of the company’s stock valued at $1,715,000 after purchasing an additional 379 shares during the last quarter. Parallel Advisors LLC grew its position in ARM by 53.3% during the 1st quarter. Parallel Advisors LLC now owns 3,142 shares of the company’s stock worth $475,000 after purchasing an additional 1,093 shares during the last quarter. GKV Capital Management Co. Inc. purchased a new position in ARM during the 1st quarter worth $106,000. CTC Alternative Strategies Ltd. purchased a new position in ARM during the 1st quarter worth $2,322,000. Finally, BankChampaign National Association purchased a new position in ARM during the 1st quarter worth $510,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Company Profile

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.