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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded down 8.5% during mid-day trading on Monday . The stock traded as low as $294.06 and last traded at $295.97. 1,272,694 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 8,775,856 shares. The stock had previously closed at $323.39.

Analysts Set New Price Targets

A number of research firms recently issued reports on ARM. KeyCorp increased their price objective on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a report on Tuesday. Rosenblatt Securities boosted their target price on ARM from $175.00 to $270.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Needham & Company LLC reaffirmed a “buy” rating and set a $400.00 price target on shares of ARM in a research report on Tuesday, June 16th. Finally, HSBC cut shares of ARM from a “buy” rating to a “hold” rating and raised their price target for the stock from $255.00 to $315.00 in a research note on Tuesday. Eighteen analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $295.25.

ARM Stock Down 6.0%

The stock’s fifty day moving average is $321.30 and its two-hundred day moving average is $199.88. The firm has a market capitalization of $300.31 billion, a price-to-earnings ratio of 334.73, a P/E/G ratio of 10.86 and a beta of 3.76.

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

Insider Activity

In other ARM news, CFO Jason Child sold 31,920 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the transaction, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares in the company, valued at $4,765,414.50. This represents a 48.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 238,906 shares of company stock valued at $56,245,828.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Amundi lifted its holdings in ARM by 24.8% during the 1st quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after purchasing an additional 2,345 shares during the last quarter. Empowered Funds LLC increased its holdings in shares of ARM by 28.8% in the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after purchasing an additional 1,094 shares during the last quarter. Schnieders Capital Management LLC. increased its holdings in shares of ARM by 9.0% in the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after purchasing an additional 200 shares during the last quarter. Bank of Nova Scotia bought a new position in shares of ARM in the second quarter valued at about $556,000. Finally, State Street Corp raised its position in shares of ARM by 14.7% in the second quarter. State Street Corp now owns 441,445 shares of the company’s stock valued at $71,399,000 after purchasing an additional 56,656 shares during the period. 7.53% of the stock is currently owned by 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.