ARM (NASDAQ:ARM) Trading Down 3% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price dropped 3% during trading on Friday . The stock traded as low as $242.50 and last traded at $243.32. 3,675,295 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 8,201,083 shares. The stock had previously closed at $250.72.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Bank of America reiterated a “neutral” rating on shares of ARM in a research report on Thursday, July 30th. Benchmark initiated coverage on ARM in a research note on Thursday, July 16th. They issued a “hold” rating for the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. Finally, The Goldman Sachs Group lifted their price target on shares of ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research note on Thursday, May 7th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $285.33.

ARM Price Performance

The stock has a market cap of $259.88 billion, a P/E ratio of 250.85, a PEG ratio of 7.39 and a beta of 3.90. The business’s 50 day simple moving average is $305.75 and its 200 day simple moving average is $229.22.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. ARM had a return on equity of 12.24% and a net margin of 20.25%.The company had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the previous year, the business earned $0.35 earnings per share. The company’s quarterly revenue was up 22.4% on a year-over-year basis. Research analysts predict that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Buying and Selling at ARM

In other news, 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 value of $4,439,866.20. Following the sale, the chief accounting officer owned 12,135 shares in the company, valued at approximately $4,765,414.50. The trade was a 48.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider William Abbey sold 6,566 shares of the business’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total transaction of $2,644,259.52. Following the completion of the sale, the insider owned 20,563 shares in the company, valued at $8,281,131.36. This represents a 24.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 22,072 shares of company stock valued at $8,528,128 over the last quarter.

Hedge Funds Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in the company. Syntax Research Inc. acquired a new stake in shares of ARM during the first quarter worth approximately $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM in the 1st quarter worth approximately $30,000. Allied Private Wealth LLC bought a new stake in ARM during the 2nd quarter worth approximately $71,000. FWL Investment Management LLC bought a new stake in ARM during the 2nd quarter worth approximately $34,000. Finally, Cassaday & Co Wealth Management LLC acquired a new stake in ARM during the 1st quarter valued at $40,000. 7.53% of the stock is owned by institutional investors.

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.