ARM (NASDAQ:ARM) Stock Price Down 10.1% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares dropped 10.1% during trading on Tuesday . The stock traded as low as $362.90 and last traded at $366.39. Approximately 10,862,396 shares were traded during mid-day trading, an increase of 20% from the average session volume of 9,053,431 shares. The stock had previously closed at $407.72.

Analysts Set New Price Targets

ARM has been the subject of a number of research reports. Raymond James Financial reiterated an “outperform” rating on shares of ARM in a report on Thursday, May 7th. TD Cowen boosted their price target on ARM from $165.00 to $265.00 and gave the company a “buy” rating in a report on Thursday, May 7th. The Goldman Sachs Group upped their price objective on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Needham & Company LLC reiterated a “buy” rating and set a $400.00 price objective on shares of ARM in a report on Tuesday, June 16th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research report on Monday, April 20th. Nineteen 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. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $258.58.

ARM Trading Down 10.1%

The company has a market cap of $391.33 billion, a P/E ratio of 436.18, a PEG ratio of 15.96 and a beta of 3.77. The business has a 50 day moving average price of $276.32 and a 200-day moving average price of $177.41.

ARM (NASDAQ:ARM) last released its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The business had revenue of $1.49 billion during the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. On average, sell-side analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current year.

Insider Activity

In other news, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the sale, the chief financial officer directly owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. This represents a 15.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William Abbey sold 6,566 shares of the company’s stock in a transaction dated 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 directly owned 20,563 shares in the company, valued at approximately $8,281,131.36. The trade was a 24.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 301,338 shares of company stock worth $66,030,158.

Hedge Funds Weigh In On ARM

A number of institutional investors have recently bought and sold shares of ARM. Capital Research Global Investors acquired a new stake in shares of ARM in the third quarter valued at approximately $243,098,000. Northwestern Mutual Wealth Management Co. increased its holdings in shares of ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after acquiring an additional 1,610,403 shares during the last quarter. Hyperion Asset Management Ltd acquired a new position in shares of ARM during the 3rd quarter worth approximately $202,980,000. Employees Provident Fund Board bought a new stake in ARM in the 4th quarter valued at $120,241,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in ARM by 1,203.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after acquiring an additional 872,644 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

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.