ARM (NASDAQ:ARM) Stock Falls 2.6% – Here’s Why

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 2.6% during mid-day trading on Tuesday. The stock traded as low as $175.78 and last traded at $181.49. Approximately 4,129,602 shares were traded during trading, a decline of 45% from the average daily volume of 7,454,891 shares. The stock had previously closed at $186.30.

Analysts Set New Price Targets

ARM has been the subject of several research reports. Piper Sandler reiterated an “overweight” rating and issued a $270.00 target price (down from $320.00) on shares of ARM in a research note on Thursday, November 5th. HSBC restated a “hold” rating and set a $215.00 price target on shares of ARM in a research note on Thursday, November 5th. Wells Fargo & Company cut their price target on ARM from $280.00 to $255.00 and set an “overweight” rating for the company in a report on Thursday, November 5th. Benchmark began coverage on ARM in a research report on Thursday, July 16th. They issued a “hold” rating for the company. Finally, Guggenheim restated a “buy” rating and set a $255.00 price objective on shares of ARM in a research report on Thursday, July 30th. 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’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $296.38.

ARM Stock Performance

The firm’s 50-day moving average price is $249.89 and its two-hundred day moving average price is $231.04. The firm has a market capitalization of $213.38 billion, a price-to-earnings ratio of 229.63, a price-to-earnings-growth ratio of 4.81 and a beta of 3.93.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.52 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.38 billion. ARM had a net margin of 17.13% and a return on equity of 11.57%. The company’s revenue for the quarter was up 27.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.39 earnings per share. As a group, equities research analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.21 EPS for the current year.

Insider Activity

In other news, CFO Jason Child sold 10,400 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the transaction, the chief financial officer directly owned 153,442 shares of the company’s stock, valued at approximately $46,032,600. This represents a 6.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Several institutional investors have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership grew its position in ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after acquiring an additional 872,644 shares during the period. Janus Henderson Group PLC bought a new position in shares of ARM during the first quarter valued at $116,112,000. Hyperion Asset Management Ltd lifted its holdings in shares of ARM by 36.9% during the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock valued at $210,662,000 after acquiring an additional 195,942 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of ARM during the third quarter valued at $179,998,000. Finally, First Trust Advisors LP boosted its stake in shares of ARM by 55.5% in the 3rd quarter. First Trust Advisors LP now owns 543,774 shares of the company’s stock valued at $157,509,000 after purchasing an additional 194,147 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

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.