ARM (NASDAQ:ARM) Shares Down 8.7% – What’s Next?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded down 8.7% during trading on Monday. The company traded as low as $279.20 and last traded at $283.33. 9,023,777 shares changed hands during trading, an increase of 16% from the average session volume of 7,803,205 shares. The stock had previously closed at $310.32.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on ARM shares. Mizuho increased their price objective on ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a report on Monday, June 8th. Rosenblatt Securities decreased their target price on ARM from $270.00 to $250.00 and set a “buy” rating for the company in a report on Friday, July 31st. Morgan Stanley upped their target price on ARM from $202.00 to $212.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Raymond James Financial reiterated an “outperform” rating on shares of ARM in a research report on Tuesday, August 25th. Finally, Wells Fargo & Company cut their price target on shares of ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $305.72.

ARM Price Performance

The company has a market capitalization of $302.62 billion, a PE ratio of 292.10, a price-to-earnings-growth ratio of 9.20 and a beta of 3.89. The firm’s fifty day simple moving average is $264.04 and its 200 day simple moving average is $255.09.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.05. The company had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period last year, the firm earned $0.35 EPS. On average, equities research analysts anticipate that Arm Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insider Activity at ARM

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

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ARM. Employees Provident Fund Board purchased a new stake in ARM during the fourth quarter worth $120,241,000. Arrowstreet Capital Limited Partnership increased its holdings in ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after buying an additional 872,644 shares in the last quarter. Janus Henderson Group PLC acquired a new position in shares of ARM in the first quarter worth about $116,112,000. SG Americas Securities LLC raised its position in shares of ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after acquiring an additional 705,459 shares during the period. Finally, Hyperion Asset Management Ltd raised its position in shares of ARM by 28.0% in the fourth 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 during the period. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

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.