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

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

Analyst Ratings Changes

ARM has been the topic of a number of recent analyst reports. Rosenblatt Securities cut their price objective on shares of ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Jefferies Financial Group restated a “buy” rating and set a $320.00 target price on shares of ARM in a research note on Monday, July 20th. KeyCorp lifted their target price on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 14th. Bank of America reiterated a “neutral” rating on shares of ARM in a research note on Thursday, July 30th. Finally, HSBC downgraded ARM from a “buy” rating to a “hold” rating and increased their price target for the company from $255.00 to $315.00 in a report on Tuesday, July 14th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, ARM currently has a consensus rating of “Moderate Buy” and an average price target of $285.33.

ARM Price Performance

The stock has a market capitalization of $270.57 billion, a price-to-earnings ratio of 261.16, a PEG ratio of 8.29 and a beta of 3.91. The firm’s fifty day moving average is $308.74 and its 200-day moving average is $227.21.

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

Insider Buying and Selling at ARM

In other ARM news, insider Charlotte Claire Eaton sold 7,805 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the transaction, the insider owned 5,000 shares of the company’s stock, valued at $1,450,050. This trade represents a 60.95% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the business’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold 40,832 shares of company stock worth $13,962,246 over the last quarter.

Institutional Trading of ARM

Several institutional investors have recently modified their holdings of ARM. Syntax Research Inc. acquired a new stake in ARM during the first quarter valued at approximately $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in ARM in the first quarter worth approximately $30,000. Allied Private Wealth LLC acquired a new position in ARM in the second quarter worth approximately $71,000. FWL Investment Management LLC bought a new position in shares of ARM in the second quarter valued at $34,000. Finally, Cassaday & Co Wealth Management LLC bought a new position in shares of ARM in the first quarter valued at $40,000. 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.