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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $148.77, but opened at $143.82. ARM shares last traded at $139.0020, with a volume of 1,748,559 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Mizuho increased their price objective on shares of ARM from $160.00 to $230.00 and gave the company an “outperform” rating in a report on Monday. Bank of America restated a “neutral” rating and issued a $120.00 target price on shares of ARM in a research report on Tuesday, January 13th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research report on Wednesday, January 21st. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating in a report on Thursday, February 5th. Finally, Barclays restated an “overweight” rating and set a $165.00 target price on shares of ARM in a report on Thursday, March 26th. Eighteen equities 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 stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $172.13.

ARM Stock Performance

The company has a 50-day moving average price of $126.75 and a 200-day moving average price of $134.00. The firm has a market capitalization of $150.07 billion, a price-to-earnings ratio of 189.52, a PEG ratio of 6.65 and a beta of 3.33.

ARM (NASDAQ:ARM) last released 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. The business had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The business’s quarterly revenue was up 26.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.39 EPS. On average, research analysts expect that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Jason Child sold 21,280 shares of the company’s stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total value of $3,157,313.60. Following the completion of the sale, the chief financial officer directly owned 174,706 shares of the company’s stock, valued at $25,921,129.22. This represents a 10.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Rene A. Haas sold 23,867 shares of the company’s stock in a transaction dated 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 sale, the chief executive officer directly owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. This trade represents a 7.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 53,133 shares of company stock valued at $8,288,586.

Institutional Trading of ARM

A number of large investors have recently made changes to their positions in the company. Compound Planning Inc. boosted its position in shares of ARM by 4.6% in the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock valued at $222,000 after purchasing an additional 69 shares during the period. Ritholtz Wealth Management boosted its position in shares of ARM by 3.0% in the 3rd quarter. Ritholtz Wealth Management now owns 2,439 shares of the company’s stock valued at $345,000 after purchasing an additional 70 shares during the period. Rathbones Group PLC boosted its position in shares of ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after purchasing an additional 70 shares during the period. Nwam LLC boosted its position in shares of ARM by 4.3% in the 3rd quarter. Nwam LLC now owns 1,711 shares of the company’s stock valued at $242,000 after purchasing an additional 71 shares during the period. Finally, Kovack Advisors Inc. boosted its position in shares of ARM by 2.0% in the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company’s stock valued at $510,000 after purchasing an additional 72 shares during the period. 7.53% of the stock is owned by institutional investors and hedge funds.

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.