ARM (NASDAQ:ARM) Trading Down 3.9% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 3.9% during trading on Friday . The stock traded as low as $326.80 and last traded at $334.27. Approximately 7,669,443 shares were traded during trading, a decline of 15% from the average daily volume of 9,028,638 shares. The stock had previously closed at $347.71.

Analyst Upgrades and Downgrades

Several analysts have issued reports on ARM shares. Barclays raised their price objective on shares of ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research note on Monday, June 1st. Wells Fargo & Company increased their price target on ARM from $255.00 to $410.00 and gave the stock an “overweight” rating in a report on Monday, June 1st. Jefferies Financial Group set a $290.00 price target on ARM in a research note on Thursday, May 21st. UBS Group boosted their price objective on ARM from $260.00 to $470.00 and gave the company a “buy” rating in a report on Wednesday. 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 research note on Thursday, May 7th. Nineteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, ARM currently has a consensus rating of “Moderate Buy” and an average price target of $279.83.

ARM Stock Performance

The firm has a market capitalization of $357.03 billion, a P/E ratio of 397.94, a P/E/G ratio of 13.04 and a beta of 3.78. The stock’s 50 day simple moving average is $288.40 and its 200 day simple moving average is $181.99.

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

Insider Transactions at ARM

In other ARM news, insider William Abbey sold 6,566 shares of the company’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares in the company, valued at approximately $8,281,131.36. This represents a 24.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Charlotte Claire Eaton sold 4,000 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $282.77, for a total value of $1,131,080.00. Following the transaction, the insider directly owned 7,805 shares in the company, valued at $2,207,019.85. The trade was a 33.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 248,205 shares of company stock valued at $57,741,572.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rathbones Group PLC boosted its holdings in ARM by 4,638.8% in the fourth quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after acquiring an additional 489,491 shares in the last quarter. Paragon Capital Management Inc. acquired a new position in shares of ARM during the fourth quarter valued at about $826,000. Lansdowne Partners UK LLP acquired a new position in shares of ARM during the third quarter valued at about $8,486,000. Hyperion Asset Management Ltd purchased a new position in shares of ARM in the 3rd quarter valued at approximately $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its position in shares of ARM by 34.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after purchasing an additional 6,232 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors.

About ARM

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.