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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares gapped down prior to trading on Monday . The stock had previously closed at $130.89, but opened at $126.38. ARM shares last traded at $126.0280, with a volume of 2,218,833 shares.

Analyst Ratings Changes

ARM has been the subject of a number of analyst reports. KeyCorp upped their price objective on shares of ARM from $190.00 to $200.00 and gave the company an “overweight” rating in a research note on Thursday, November 6th. Barclays lifted their price target on ARM from $115.00 to $165.00 and gave the company an “overweight” rating in a report on Thursday, November 6th. Weiss Ratings reissued a “hold (c)” rating on shares of ARM in a research note on Wednesday, October 8th. Loop Capital lifted their target price on ARM from $155.00 to $180.00 and gave the company a “buy” rating in a research note on Wednesday, November 12th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $180.00 price target on shares of ARM in a research report on Thursday, November 6th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $178.30.

ARM Trading Down 6.3%

The firm has a 50-day simple moving average of $150.95 and a two-hundred day simple moving average of $147.51. The company has a market capitalization of $119.91 billion, a price-to-earnings ratio of 145.00, a price-to-earnings-growth ratio of 7.45 and a beta of 4.24.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, beating the consensus estimate of $0.33 by $0.06. The business had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.06 billion. ARM had a return on equity of 15.03% and a net margin of 18.81%.The firm’s quarterly revenue was up 34.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.30 EPS. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. On average, sell-side analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On ARM

Several hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC lifted its position in shares of ARM by 126.0% in the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock worth $25,000 after buying an additional 97 shares during the last quarter. Huntington National Bank acquired a new position in shares of ARM during the 2nd quarter valued at about $30,000. Grey Fox Wealth Advisors LLC bought a new position in shares of ARM in the 3rd quarter valued at approximately $28,000. FWL Investment Management LLC acquired a new stake in ARM in the 2nd quarter worth approximately $34,000. Finally, Oliver Lagore Vanvalin Investment Group acquired a new stake in ARM in the 2nd quarter worth approximately $39,000. 7.53% of the stock is owned by institutional investors and hedge funds.

About ARM

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.