ARM (NASDAQ:ARM) Trading Down 4.8% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares dropped 4.8% on Wednesday . The company traded as low as $332.00 and last traded at $337.47. Approximately 5,033,808 shares were traded during trading, a decline of 44% from the average daily volume of 8,975,592 shares. The stock had previously closed at $354.57.

Analysts Set New Price Targets

A number of equities analysts have issued reports on ARM shares. Mizuho raised their price objective on shares of ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a research note on Monday, June 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Wells Fargo & Company increased their price target on ARM from $255.00 to $410.00 and gave the company an “overweight” rating in a research note on Monday, June 1st. Rosenblatt Securities raised their price target on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Finally, Guggenheim lifted their price objective on ARM from $240.00 to $255.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Nineteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, ARM has a consensus rating of “Moderate Buy” and a consensus price target of $279.83.

ARM Stock Performance

The firm has a market cap of $336.74 billion, a P/E ratio of 375.33, a price-to-earnings-growth ratio of 12.26 and a beta of 3.76. The firm’s 50 day moving average is $305.33 and its two-hundred day moving average is $189.00.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, April 1st. The company reported $0.60 EPS 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%. Analysts predict that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Spencer Collins sold 51,961 shares of the company’s 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 owned 51,125 shares in the company, valued at $10,824,696.25. This represents a 50.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider William Abbey sold 10,887 shares of the firm’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $224.14, for a total value of $2,440,212.18. Following the sale, the insider directly owned 43,353 shares in the company, valued at $9,717,141.42. The trade was a 20.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 248,205 shares of company stock worth $57,741,572 over the last ninety days.

Institutional Investors Weigh In On ARM

A number of hedge funds have recently modified their holdings of ARM. Rathbones Group PLC lifted its stake in shares of ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after acquiring an additional 70 shares during the last quarter. CreativeOne Wealth LLC increased its holdings in ARM by 5.0% in the 4th quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock worth $200,000 after purchasing an additional 87 shares in the last quarter. AdvisorNet Financial Inc increased its holdings in ARM by 6.2% in the 1st quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock worth $254,000 after purchasing an additional 98 shares in the last quarter. US Bancorp DE raised its position in ARM by 1.6% in the third quarter. US Bancorp DE now owns 6,485 shares of the company’s stock valued at $918,000 after purchasing an additional 99 shares during the last quarter. Finally, Moors & Cabot Inc. raised its position in ARM by 5.3% in the third quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock valued at $290,000 after purchasing an additional 103 shares during the last quarter. 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.