ARM (NASDAQ:ARM) Trading Down 4.8% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price dropped 4.8% on Wednesday . The stock traded as low as $102.92 and last traded at $102.6620. Approximately 1,461,214 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 4,979,093 shares. The stock had previously closed at $107.84.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on ARM. Barclays upped their price target on shares of ARM from $115.00 to $165.00 and gave the stock an “overweight” rating in a report on Thursday, November 6th. The Goldman Sachs Group downgraded ARM from a “neutral” rating to a “sell” rating and cut their target price for the stock from $160.00 to $120.00 in a research note on Monday, December 15th. Oddo Bhf set a $170.00 target price on shares of ARM in a report on Monday, January 5th. JPMorgan Chase & Co. boosted their target price on ARM from $175.00 to $180.00 and gave the company an “overweight” rating in a research note on Thursday, November 6th. Finally, UBS Group lowered their price target on shares of ARM from $200.00 to $195.00 and set a “buy” rating for the company in a research report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $175.05.

ARM Trading Up 0.6%

The company has a market capitalization of $111.76 billion, a price-to-earnings ratio of 135.62, a price-to-earnings-growth ratio of 6.29 and a beta of 4.34. The company has a 50-day moving average of $126.29 and a 200-day moving average of $142.71.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, November 5th. The company reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.33 by $0.06. The firm had revenue of $1.14 billion for 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 company’s quarterly revenue was up 34.5% on a year-over-year basis. During the same period last year, the firm earned $0.30 EPS. ARM has set its Q3 2026 guidance at 0.370-0.450 EPS. On average, research analysts expect that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Institutional Trading of ARM

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Schroder Investment Management Group grew its position in ARM by 41.7% during the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company’s stock valued at $767,611,000 after acquiring an additional 1,396,684 shares during the period. Sustainable Growth Advisers LP raised its position in ARM by 116.8% in the second quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company’s stock worth $559,171,000 after acquiring an additional 1,862,626 shares in the last quarter. Bank of America Corp DE increased its position in shares of ARM by 22.1% in the third quarter. Bank of America Corp DE now owns 1,802,973 shares of the company’s stock worth $255,103,000 after acquiring an additional 326,230 shares in the last quarter. Invesco Ltd. lifted its position in shares of ARM by 28.2% in the third quarter. Invesco Ltd. now owns 1,772,123 shares of the company’s stock worth $250,738,000 after purchasing an additional 390,217 shares in the last quarter. Finally, Capital Research Global Investors bought a new stake in shares of ARM in the 3rd quarter valued at approximately $243,098,000. Institutional investors and hedge funds 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.