ARM (NASDAQ:ARM) Stock Price Down 7.5% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were down 7.5% during trading on Monday . The stock traded as low as $407.80 and last traded at $406.6430. Approximately 5,244,598 shares traded hands during trading, a decline of 42% from the average session volume of 8,993,563 shares. The stock had previously closed at $439.46.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Raymond James Financial restated an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of ARM in a report on Thursday, May 7th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $150.00 price objective (up from $135.00) on shares of ARM in a research note on Tuesday, April 7th. New Street Research downgraded shares of ARM from a “buy” rating to a “neutral” rating in a research note on Thursday. Finally, Mizuho boosted their price target on ARM from $425.00 to $500.00 and gave the company an “outperform” rating in a research note on Monday, June 8th. Nineteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $253.38.

ARM Trading Down 8.2%

The firm has a market capitalization of $430.68 billion, a P/E ratio of 481.67, a price-to-earnings-growth ratio of 15.96 and a beta of 3.77. The business has a 50-day moving average of $271.16 and a 200 day moving average of $175.50.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The business had revenue of $1.49 billion for the quarter. As a group, research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Buying and Selling

In related news, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the sale, the insider owned 51,125 shares of the company’s stock, valued at approximately $10,824,696.25. This trade represents a 50.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider directly owned 5,543 shares in the company, valued at approximately $1,159,318.45. The trade was a 81.45% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 301,338 shares of company stock worth $66,030,158 over the last quarter.

Institutional Investors Weigh In On ARM

Several institutional investors have recently bought and sold shares of ARM. Syntax Research Inc. purchased a new stake in ARM in the 1st quarter valued at $30,000. Evelyn Partners Investment Management Services Ltd bought a new stake in shares of ARM in the 1st quarter worth $30,000. FWL Investment Management LLC purchased a new stake in shares of ARM in the second quarter valued at about $34,000. Cassaday & Co Wealth Management LLC bought a new position in shares of ARM during the first quarter valued at about $40,000. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of ARM in the fourth quarter valued at approximately $30,000. Institutional investors own 7.53% of the company’s stock.

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.