ARM (NASDAQ:ARM) Shares Down 6.6% – Here’s What Happened

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price dropped 6.6% during mid-day trading on Thursday . The stock traded as low as $309.74 and last traded at $315.28. 7,526,496 shares traded hands during trading, a decline of 16% from the average daily volume of 8,964,300 shares. The stock had previously closed at $337.47.

Wall Street Analyst Weigh In

ARM has been the subject of several research reports. Guggenheim increased their target price on ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Susquehanna upped their price objective on ARM from $170.00 to $210.00 and gave the company a “positive” rating in a research note on Thursday, April 16th. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and raised their price objective for the company from $90.00 to $205.00 in a report on Friday, March 20th. Morgan Stanley reiterated an “equal weight” rating and set a $150.00 target price (up from $135.00) on shares of ARM in a research report on Tuesday, April 7th. Finally, Sanford C. Bernstein set a $500.00 target price on shares of ARM in a report on Wednesday, June 17th. Nineteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, ARM has an average rating of “Moderate Buy” and a consensus target price of $279.83.

ARM Stock Down 6.6%

The firm has a market cap of $336.74 billion, a P/E ratio of 375.33, a P/E/G ratio of 12.88 and a beta of 3.76. The business’s 50 day moving average is $302.53 and its two-hundred day moving average is $187.70.

ARM (NASDAQ:ARM) last issued 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 business had revenue of $1.49 billion for the quarter. Equities research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Jason Child sold 31,920 shares of the firm’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 completion of the sale, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. This trade represents a 15.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Laura Kathleen Bartels sold 11,306 shares of ARM stock in a transaction that occurred on Tuesday, June 2nd. The stock was 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 of the company’s stock, valued at approximately $4,765,414.50. The trade was a 48.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 248,205 shares of company stock worth $57,741,572 in the last quarter.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Syntax Research Inc. acquired a new stake in ARM in the first quarter worth $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM during the first quarter valued at about $30,000. Mcguire Capital Advisors Inc. bought a new position in shares of ARM during the 4th quarter worth about $30,000. Navalign LLC bought a new position in shares of ARM during the 4th quarter worth about $33,000. Finally, FWL Investment Management LLC acquired a new stake in shares of ARM in the 2nd quarter valued at about $34,000. Institutional investors and hedge funds 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.