ARM (NASDAQ:ARM) Stock Falls 1.4% – Here’s What Happened

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded down 1.4% on Wednesday. The stock traded as low as $283.50 and last traded at $289.66. 4,125,333 shares traded hands during trading, a decline of 47% from the average daily volume of 7,774,402 shares. The stock had previously closed at $293.67.

Analysts Set New Price Targets

Several research firms have recently issued reports on ARM. Rosenblatt Securities decreased their price target on ARM from $270.00 to $250.00 and set a “buy” rating for the company in a research note on Friday, July 31st. Jefferies Financial Group reaffirmed a “buy” rating and issued a $320.00 price objective on shares of ARM in a report on Monday, July 20th. Needham & Company LLC reiterated a “buy” rating and issued a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. Wells Fargo & Company lowered their target price on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Finally, Mizuho boosted their price target on shares of ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $303.32.

ARM Price Performance

The company has a fifty day moving average price of $264.70 and a two-hundred day moving average price of $259.93. The firm has a market cap of $312.24 billion, a price-to-earnings ratio of 301.38, a price-to-earnings-growth ratio of 8.59 and a beta of 3.78.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS 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 firm had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the previous year, the business earned $0.35 earnings per share. ARM’s revenue for the quarter was up 22.4% compared to the same quarter last year. On average, research analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Activity at ARM

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ARM. Hyperion Asset Management Ltd boosted its stake in shares of ARM by 28.0% during the 4th quarter. Hyperion Asset Management Ltd now owns 1,836,185 shares of the company’s stock worth $200,713,000 after acquiring an additional 401,594 shares in the last quarter. Capital Research Global Investors raised its position in shares of ARM by 5.1% during the fourth quarter. Capital Research Global Investors now owns 1,805,110 shares of the company’s stock worth $197,332,000 after purchasing an additional 86,978 shares during the period. Franklin Resources Inc. lifted its holdings in shares of ARM by 0.7% during the fourth quarter. Franklin Resources Inc. now owns 1,461,410 shares of the company’s stock valued at $159,747,000 after purchasing an additional 10,385 shares during the last quarter. SG Americas Securities LLC lifted its holdings in shares of ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock valued at $146,903,000 after purchasing an additional 705,459 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after purchasing an additional 872,644 shares during the period. Institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops intellectual property used to create energy-efficient computing products. Arm does not generally manufacture chips; instead, it licenses processor architectures, CPU cores, graphics technologies and related system IP to semiconductor companies and original equipment manufacturers, which incorporate them into their own products.

The company’s offerings include the Cortex family of CPUs for mobile, consumer, automotive and embedded applications; Neoverse platforms for cloud and data-center infrastructure; Mali graphics processing units; and Ethos neural processing units designed for artificial intelligence and machine-learning workloads.