ARM (NASDAQ:ARM) Shares Down 3.9% – What’s Next?

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

Analyst Ratings Changes

A number of research analysts recently weighed in on ARM shares. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. Wells Fargo & Company boosted 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. Barclays boosted their price objective on ARM from $250.00 to $360.00 and gave the company an “overweight” rating in a report on Monday, June 1st. Bank of America increased their target price on ARM from $245.00 to $335.00 and gave the stock a “neutral” rating in a report on Thursday, June 11th. Finally, Royal Bank Of Canada increased 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. Nineteen investment 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.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $253.38.

ARM Stock Performance

The company has a market cap of $469.38 billion, a price-to-earnings ratio of 523.17, a price-to-earnings-growth ratio of 14.39 and a beta of 3.78. The stock’s fifty day moving average is $259.44 and its two-hundred day moving average is $171.21.

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

Insider Buying and Selling

In related news, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction 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 completion of the sale, the chief financial officer owned 174,232 shares in the company, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Spencer Collins sold 51,961 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares of the company’s stock, valued at $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 301,338 shares of company stock valued at $66,030,158.

Hedge Funds Weigh In On ARM

A number of hedge funds have recently bought and sold shares of the company. Syntax Research Inc. purchased a new stake in shares of ARM in the first quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd bought a new position in shares of ARM during the first quarter valued at about $30,000. FWL Investment Management LLC purchased a new position in ARM during the second quarter worth about $34,000. Cassaday & Co Wealth Management LLC purchased a new position in ARM during the first quarter worth about $40,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in ARM in the 4th quarter worth about $30,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

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.