ARM (NASDAQ:ARM) Stock Price Down 10.1% – Here’s Why

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) traded down 10.1% during mid-day trading on Tuesday . The company traded as low as $362.90 and last traded at $366.39. 10,862,396 shares were traded during mid-day trading, an increase of 20% from the average daily volume of 9,053,431 shares. The stock had previously closed at $407.72.

Wall Street Analysts Forecast Growth

Several analysts have commented on ARM shares. Guggenheim upped their target price on shares of ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. New Street Research cut ARM from a “buy” rating to a “neutral” rating in a research note on Thursday, June 18th. The Goldman Sachs Group upped their price objective on ARM from $125.00 to $150.00 and gave the company a “sell” rating in a report on Thursday, May 7th. Wells Fargo & Company increased their target price on ARM from $255.00 to $410.00 and gave the company an “overweight” rating in a research note on Monday, June 1st. Finally, Needham & Company LLC restated a “buy” rating and set a $400.00 target price on shares of ARM in a report on Tuesday, June 16th. Nineteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $258.58.

ARM Stock Down 10.1%

The company’s fifty day simple moving average is $276.32 and its two-hundred day simple moving average is $177.41. The company has a market capitalization of $391.33 billion, a price-to-earnings ratio of 436.18, a price-to-earnings-growth ratio of 15.96 and a beta of 3.77.

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

Insider Activity

In other ARM news, CEO Rene A. Haas sold 23,867 shares of the stock in a transaction dated Wednesday, March 25th. The stock was 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 in the company, valued at $46,894,829.05. This represents a 7.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 stock was sold at an average price of $209.15, for a total value of $5,090,501.85. Following the sale, the insider directly owned 5,543 shares in the company, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 301,338 shares of company stock valued at $66,030,158.

Institutional Trading of ARM

A number of large investors have recently bought and sold shares of the business. Compound Planning Inc. raised its holdings in ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company’s stock worth $222,000 after buying an additional 69 shares during the period. Rathbones Group PLC boosted its holdings in shares of ARM by 0.7% in the third quarter. Rathbones Group PLC now owns 10,552 shares of the company’s stock valued at $1,493,000 after buying an additional 70 shares during the period. CreativeOne Wealth LLC increased its position in shares of ARM by 5.0% during the fourth quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock worth $200,000 after acquiring an additional 87 shares in the last quarter. AdvisorNet Financial Inc increased its position in shares of ARM by 6.2% during the first quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock worth $254,000 after acquiring an additional 98 shares in the last quarter. Finally, US Bancorp DE raised its holdings in shares of ARM by 1.6% during the third quarter. US Bancorp DE now owns 6,485 shares of the company’s stock worth $918,000 after acquiring an additional 99 shares during the period. 7.53% of the stock is owned by institutional investors.

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.