ARM (NASDAQ:ARM) Stock Price Down 2.9% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares fell 2.9% during trading on Monday . The company traded as low as $271.28 and last traded at $271.43. 3,535,003 shares traded hands during mid-day trading, a decline of 57% from the average daily volume of 8,303,648 shares. The stock had previously closed at $279.44.

Wall Street Analyst Weigh In

ARM has been the topic of a number of recent research reports. UBS Group lowered their target price on ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Wells Fargo & Company dropped their price objective on shares of ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Needham & Company LLC reiterated a “buy” rating and issued a $255.00 price target on shares of ARM in a research report on Thursday, July 30th. Guggenheim reiterated a “buy” rating and set a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $320.00 price objective on shares of ARM in a research report on Monday, July 20th. Eighteen 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’s stock. Based on data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and an average price target of $285.33.

ARM Price Performance

The company has a market capitalization of $289.91 billion, a price-to-earnings ratio of 279.83, a P/E/G ratio of 8.29 and a beta of 3.91. The firm’s fifty day moving average price is $311.67 and its 200-day moving average price is $225.09.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.05. The company had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.ARM’s revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter last year, the business posted $0.35 EPS. On average, research analysts predict that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Transactions at ARM

In related news, insider Charlotte Claire Eaton sold 7,805 shares of ARM stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the sale, the insider directly owned 5,000 shares in the company, valued at $1,450,050. This trade represents a 60.95% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 sale, the chief financial officer directly owned 174,232 shares in the company, valued at $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 132,749 shares of company stock valued at $34,521,551.

Hedge Funds Weigh In On ARM

Large investors have recently modified their holdings of the business. Syntax Research Inc. bought a new stake in shares of ARM in the first quarter worth $30,000. Evelyn Partners Investment Management Services Ltd bought a new position in ARM during the 1st quarter worth $30,000. Allied Private Wealth LLC acquired a new position in ARM during the 2nd quarter worth about $71,000. FWL Investment Management LLC bought a new stake in shares of ARM in the 2nd quarter valued at about $34,000. Finally, Cassaday & Co Wealth Management LLC bought a new stake in shares of ARM in the 1st quarter valued at about $40,000. Institutional investors own 7.53% of the company’s stock.

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.