ARM (NASDAQ:ARM) Shares Down 6.7% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares dropped 6.7% on Tuesday . The stock traded as low as $247.60 and last traded at $253.32. Approximately 6,299,199 shares were traded during trading, a decline of 24% from the average daily volume of 8,285,978 shares. The stock had previously closed at $271.43.

Analyst Ratings Changes

Several analysts have commented on ARM shares. TD Cowen lowered their price objective on shares of ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Benchmark began coverage on shares of ARM in a research note on Thursday, July 16th. They set a “hold” rating for the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $255.00 price target on shares of ARM in a report on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $255.00 price target on shares of ARM in a report on Thursday, July 30th. Finally, UBS Group dropped their price objective on ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Eighteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $285.33.

ARM Price Performance

The firm’s 50 day moving average price is $307.58 and its two-hundred day moving average price is $228.20. The stock has a market cap of $262.01 billion, a PE ratio of 254.36, a P/E/G ratio of 7.51 and a beta of 3.90.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the prior year, the company posted $0.35 EPS. ARM’s revenue was up 22.4% compared to the same quarter last year. Analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Buying and Selling at ARM

In related news, insider William Abbey sold 6,566 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the sale, the insider owned 20,563 shares of the company’s stock, valued at approximately $8,281,131.36. This represents a 24.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction dated 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 transaction, the chief accounting officer owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This represents a 48.23% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 24,372 shares of company stock valued at $9,231,514.

Institutional Investors Weigh In On ARM

Several hedge funds and other institutional investors have recently modified their holdings of ARM. Morgan Stanley grew its stake in ARM by 1.2% during the fourth quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock valued at $413,521,000 after acquiring an additional 45,314 shares in the last quarter. Invesco Ltd. lifted its stake in ARM by 36.9% in the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock worth $265,279,000 after purchasing an additional 654,727 shares in the last quarter. Coatue Management LLC lifted its stake in ARM by 1.8% in the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after purchasing an additional 40,174 shares in the last quarter. Wellington Management Group LLP boosted its holdings in ARM by 41.6% in the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after purchasing an additional 631,576 shares during the period. Finally, Schroder Investment Management Group boosted its holdings in ARM by 11.0% in the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after purchasing an additional 187,035 shares during the period. 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.