ARM (NASDAQ:ARM) Shares Gap Down – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares gapped down before the market opened on Tuesday . The stock had previously closed at $148.77, but opened at $143.82. ARM shares last traded at $139.0020, with a volume of 1,748,559 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have commented on ARM shares. The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $160.00 to $120.00 in a research note on Monday, December 15th. Oddo Bhf set a $170.00 price objective on ARM in a research note on Monday, January 5th. Royal Bank Of Canada upped their price objective on ARM from $130.00 to $175.00 and gave the company an “outperform” rating in a research note on Wednesday, March 25th. Bank of America reaffirmed a “neutral” rating and set a $120.00 price objective on shares of ARM in a research note on Tuesday, January 13th. Finally, Mizuho upped their price objective on ARM from $160.00 to $230.00 and gave the company an “outperform” rating in a research note on Monday. Eighteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $172.13.

ARM Trading Down 4.5%

The firm has a market capitalization of $150.07 billion, a PE ratio of 189.52, a P/E/G ratio of 6.65 and a beta of 3.33. The business has a 50 day moving average price of $126.75 and a 200-day moving average price of $134.00.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, February 5th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The company’s revenue for the quarter was up 26.3% on a year-over-year basis. During the same period in the prior year, the business posted $0.39 EPS. On average, equities research analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Jason Child sold 21,280 shares of the stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the completion of the transaction, the chief financial officer directly owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. This represents a 10.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Rene A. Haas sold 23,867 shares of the stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. This trade represents a 7.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 53,133 shares of company stock valued at $8,288,586.

Hedge Funds Weigh In On ARM

A number of large investors have recently modified their holdings of the business. Rockefeller Capital Management L.P. raised its stake in shares of ARM by 0.7% during the 4th quarter. Rockefeller Capital Management L.P. now owns 26,745 shares of the company’s stock worth $2,923,000 after buying an additional 173 shares in the last quarter. Fund Advisors of America Inc FL purchased a new position in ARM in the 4th quarter valued at approximately $663,000. Hsbc Holdings PLC increased its stake in ARM by 25.2% in the 4th quarter. Hsbc Holdings PLC now owns 92,992 shares of the company’s stock valued at $10,281,000 after purchasing an additional 18,717 shares in the last quarter. SHP Wealth Management purchased a new position in ARM in the 4th quarter valued at approximately $69,000. Finally, Employees Provident Fund Board purchased a new position in ARM in the 4th quarter valued at approximately $120,241,000. 7.53% of the stock is owned by hedge funds and other 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.