ARM (NASDAQ:ARM) Stock Falls 4.6% – Should You Sell?

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 4.6% during mid-day trading on Friday. The stock traded as low as $180.50 and last traded at $190.53. 5,464,972 shares changed hands during trading, a decline of 26% from the average session volume of 7,430,782 shares. The stock had previously closed at $199.78.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on ARM. HSBC reissued a “hold” rating and issued a $215.00 price target on shares of ARM in a research report on Thursday, November 5th. Raymond James Financial reissued an “outperform” rating and issued a $166.00 target price on shares of ARM in a report on Tuesday, August 25th. Needham & Company LLC reissued a “buy” rating and issued a $255.00 target price on shares of ARM in a research note on Thursday, November 5th. TD Cowen reduced their price target on ARM from $350.00 to $250.00 and set a “buy” rating for the company in a report on Thursday, November 5th. Finally, Barclays lowered their price target on ARM from $360.00 to $325.00 and set an “overweight” rating for the company in a research report on Thursday, November 5th. Eighteen equities research 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. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $296.38.

ARM Price Performance

The firm’s 50 day moving average price is $249.19 and its 200-day moving average price is $231.46. The stock has a market cap of $203.50 billion, a P/E ratio of 219.00, a P/E/G ratio of 5.87 and a beta of 3.93.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.04. ARM had a net margin of 17.13% and a return on equity of 11.57%. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter last year, the firm earned $0.39 earnings per share. The firm’s quarterly revenue was up 27.1% compared to the same quarter last year. On average, analysts expect that Arm Holdings PLC Sponsored ADR will post 1.11 earnings per share for the current year.

Insider Buying and Selling

In other ARM news, CFO Jason Child sold 10,400 shares of the stock in a transaction on Monday, September 21st. The stock was sold at an average price of $300.00, for a total transaction of $3,120,000.00. Following the sale, the chief financial officer directly 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 document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ARM. Wealth Alliance LLC purchased a new stake in shares of ARM during the third quarter valued at $268,000. Xcelsior Advisor Partners LLC raised its position in ARM by 28.6% in the 3rd quarter. Xcelsior Advisor Partners LLC now owns 1,986 shares of the company’s stock worth $575,000 after buying an additional 442 shares during the last quarter. Gabelli Funds LLC purchased a new position in ARM in the 3rd quarter worth about $515,000. GABELLI & Co INVESTMENT ADVISERS INC. purchased a new position in ARM in the 3rd quarter worth about $232,000. Finally, Gamco Investors INC. ET AL bought a new position in ARM during the 3rd quarter valued at about $348,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

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.