ARM (NASDAQ:ARM) Trading Down 8.5% – Here’s What Happened

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded down 8.5% during mid-day trading on Friday . The stock traded as low as $208.50 and last traded at $209.16. 10,038,175 shares were traded during trading, an increase of 28% from the average session volume of 7,814,196 shares. The stock had previously closed at $228.50.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s software and hardware ecosystem continues to reinforce its competitive moat, supporting its leadership in smartphones and device computing. ARM’s Powerful Ecosystem Advantage Drives Market Leadership
• Positive Sentiment: Recent reporting says Arm and SoftBank tried to buy Cerebras, signaling continued ambition to expand Arm’s footprint in AI semiconductors. Arm’s Cerebras Bid Sheds Light On AI Chip Expansion Plans
• Positive Sentiment: UBS data showed ARM gaining server chip share at Intel’s expense, reinforcing the bull case for Arm’s long-term growth in data center and AI-related markets. New report shows AMD and ARM continue server share gains at Intel’s expense
• Neutral Sentiment: Analysts warned that the AI trade may be taking a breather, which has weighed on chip stocks broadly rather than on ARM-specific fundamentals. The AI Trade Takes a Breather to End the Week
• Neutral Sentiment: A major insider sale by Spencer Collins may be adding near-term pressure, though it does not change the company’s operating outlook by itself. ARM Insider Spencer Collins Sells 51,961 Shares
• Negative Sentiment: Another market note linked ARM to warnings about a potential chip-stock bubble, contributing to the day’s risk-off sentiment in semiconductor names. Intel Stock Is Falling as Analyst Issues Chip-Stock Bubble Warning

Wall Street Analyst Weigh In

ARM has been the topic of several research reports. Wells Fargo & Company boosted their price target on shares of ARM from $220.00 to $255.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Barclays boosted their price target on shares of ARM from $200.00 to $250.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and boosted their price target for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Needham & Company LLC boosted their price target on shares of ARM from $200.00 to $255.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Finally, Royal Bank Of Canada boosted their price target on shares of ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a research report on Thursday, May 7th. Nineteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $199.61.

ARM Stock Down 8.5%

The firm’s 50 day simple moving average is $163.22 and its 200 day simple moving average is $140.10. The company has a market capitalization of $220.98 billion, a PE ratio of 249.00, a price-to-earnings-growth ratio of 7.63 and a beta of 3.40.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. The company had revenue of $1.49 billion during the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. As a group, sell-side analysts predict that ARM Holdings PLC Sponsored ADR will post 1.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other ARM news, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the completion of the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the transaction, the chief financial officer directly owned 174,706 shares of the company’s stock, valued at $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 135,673 shares of company stock valued at $24,616,433 over the last three months.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ARM. Grey Fox Wealth Advisors LLC purchased a new position in ARM during the third quarter worth $28,000. Syntax Research Inc. purchased a new stake in shares of ARM during the first quarter valued at $30,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of ARM during the fourth quarter valued at $30,000. Navalign LLC purchased a new stake in shares of ARM during the fourth quarter valued at $33,000. Finally, FWL Investment Management LLC purchased a new stake in shares of ARM during the second quarter valued at $34,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.