ARM (NASDAQ:ARM) Shares Down 3.9% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded down 3.9% during trading on Tuesday . The stock traded as low as $395.88 and last traded at $396.34. 12,319,173 shares changed hands during trading, an increase of 40% from the average session volume of 8,781,748 shares. The stock had previously closed at $412.55.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Royal Bank Of Canada raised their target price on ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a report on Thursday, May 7th. The Goldman Sachs Group raised their price objective on ARM from $125.00 to $150.00 and gave the company a “sell” rating in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a report on Thursday, May 7th. Bank of America raised their price objective on ARM from $245.00 to $335.00 and gave the company a “neutral” rating in a report on Thursday, June 11th. Finally, Wells Fargo & Company raised their price objective on ARM from $255.00 to $410.00 and gave the company an “overweight” rating in a report on Monday, June 1st. Twenty analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus price target of $245.04.

ARM Trading Down 3.9%

The business has a fifty day moving average of $249.09 and a 200 day moving average of $167.34. The company has a market capitalization of $423.28 billion, a PE ratio of 471.79, a PEG ratio of 13.83 and a beta of 3.77.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The company had revenue of $1.49 billion during the quarter. Equities analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Transactions at ARM

In related news, insider William Abbey sold 6,566 shares of the company’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares of the company’s stock, valued at $8,281,131.36. This represents a 24.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were 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. This trade represents a 15.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 301,338 shares of company stock valued at $66,030,158 in the last 90 days.

Institutional Trading of ARM

Hedge funds have recently added to or reduced their stakes in the stock. Syntax Research Inc. purchased a new position in ARM in the 1st quarter valued at approximately $30,000. Evelyn Partners Investment Management Services Ltd purchased a new position in ARM during the first quarter worth $30,000. Mcguire Capital Advisors Inc. purchased a new position in ARM during the fourth quarter worth $30,000. Navalign LLC purchased a new position in ARM during the fourth quarter worth $33,000. Finally, FWL Investment Management LLC purchased a new position in ARM during the second quarter worth $34,000. 7.53% of the stock is owned by institutional investors and hedge funds.

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.