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

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were down 7.5% on Monday . The stock traded as low as $407.80 and last traded at $406.6430. 5,244,598 shares changed 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.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a report on Thursday, May 7th. Barclays upped their price target on shares of ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a report on Monday, June 1st. Mizuho increased their price target on shares of ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. Sanford C. Bernstein set a $500.00 price objective on shares of ARM in a research note on Wednesday, June 17th. Finally, Royal Bank Of Canada boosted their price objective on shares of ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a research report on Thursday, May 7th. Nineteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $253.38.

ARM Stock Performance

The firm’s fifty day moving average is $271.16 and its 200-day moving average is $175.50. The company 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.

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

Insider Buying and Selling

In related news, insider Spencer Collins sold 51,961 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the sale, the insider owned 51,125 shares of the company’s stock, valued at $10,824,696.25. This trade represents a 50.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Jason Child sold 31,920 shares of the firm’s stock in a transaction on 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 in the company, valued at approximately $39,470,517.28. This trade represents a 15.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 301,338 shares of company stock worth $66,030,158 in the last ninety days.

Institutional Trading of ARM

Hedge funds and other institutional investors have recently made changes to their positions in the company. Syntax Research Inc. acquired a new position in ARM in the 1st quarter valued at approximately $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in shares of ARM during the first quarter worth $30,000. Mcguire Capital Advisors Inc. acquired a new position in shares of ARM during the fourth quarter worth $30,000. Navalign LLC bought a new stake in shares of ARM in the fourth quarter worth $33,000. Finally, FWL Investment Management LLC acquired a new stake in ARM in the second quarter valued at $34,000. 7.53% of the stock is currently owned by institutional investors.

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.