ARM (NASDAQ:ARM) Stock Price Down 3.8% – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were down 3.8% on Monday . The company traded as low as $198.35 and last traded at $203.26. Approximately 6,630,102 shares traded hands during mid-day trading, a decline of 9% from the average daily volume of 7,295,441 shares. The stock had previously closed at $211.18.

Analysts Set New Price Targets

Several brokerages have recently commented on ARM. Rosenblatt Securities restated a “buy” rating and set a $175.00 price objective on shares of ARM in a research report on Wednesday, March 25th. The Goldman Sachs Group increased their price target on ARM from $110.00 to $125.00 and gave the stock a “sell” rating in a research note on Thursday, April 9th. Citigroup cut ARM from a “buy” rating to a “hold” rating in a report on Tuesday, January 13th. JPMorgan Chase & Co. dropped their price objective on ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. Finally, Jefferies Financial Group set a $170.00 target price on ARM in a research report on Thursday, February 5th. Eighteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, ARM presently has an average rating of “Moderate Buy” and a consensus target price of $176.71.

ARM Stock Down 3.8%

The company has a market capitalization of $214.75 billion, a P/E ratio of 271.01, a price-to-earnings-growth ratio of 9.52 and a beta of 3.40. The business has a 50 day moving average of $148.60 and a 200 day moving average of $137.34.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Thursday, February 5th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the prior year, the firm earned $0.39 EPS. The company’s revenue for the quarter was up 26.3% on a year-over-year basis. On average, research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.85 EPS for the current year.

Insider Buying and Selling at ARM

In other ARM news, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at $46,894,829.05. This trade represents a 7.58% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Jason Child sold 21,280 shares of the business’s stock in a transaction dated 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 sale, the chief financial officer owned 174,706 shares in the company, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 83,712 shares of company stock valued at $13,614,730 in the last quarter.

Institutional Investors Weigh In On ARM

Several institutional investors have recently modified their holdings of ARM. Pacific Heights Asset Management LLC boosted its stake in shares of ARM by 32.1% during the 3rd quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock worth $26,176,000 after purchasing an additional 45,000 shares during the period. Paragon Capital Management Inc. purchased a new stake in ARM in the 4th quarter worth about $826,000. Stanley Laman Group Ltd. purchased a new stake in ARM in the 3rd quarter worth about $6,219,000. Lansdowne Partners UK LLP bought a new stake in ARM in the third quarter worth about $8,486,000. Finally, Hyperion Asset Management Ltd purchased a new position in shares of ARM during the third quarter valued at approximately $202,980,000. 7.53% of the stock is 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.