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

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) shares gapped down before the market opened on Monday . The stock had previously closed at $264.79, but opened at $242.38. ARM shares last traded at $247.5720, with a volume of 1,077,325 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. New Street Research raised shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a research note on Thursday, July 30th. Rosenblatt Securities cut their target price on ARM from $270.00 to $250.00 and set a “buy” rating on the stock in a research note on Friday, July 31st. UBS Group reduced their price target on ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. KeyCorp upped their price target on ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Finally, Morgan Stanley increased their price objective on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and an average price target of $305.72.

ARM Trading Down 9.0%

The stock has a market cap of $257.35 billion, a PE ratio of 248.54, a P/E/G ratio of 7.85 and a beta of 3.89. The business has a fifty day simple moving average of $265.84 and a two-hundred day simple moving average of $243.60.

ARM (NASDAQ:ARM) last released its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. The company had revenue of $1.29 billion during the quarter, compared to analysts’ expectations of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%.The firm’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.35 EPS. On average, research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insiders Place Their Bets

In other ARM news, CFO Jason Child sold 10,400 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $255.33, for a total value of $2,655,432.00. Following the completion of the transaction, the chief financial officer owned 163,832 shares in the company, valued at approximately $41,831,224.56. This represents a 5.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

Hedge funds have recently modified their holdings of the business. Morgan Stanley grew its position in shares of ARM by 1.2% in the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after buying an additional 45,314 shares during the period. Invesco Ltd. lifted its position in ARM by 36.9% during the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after acquiring an additional 654,727 shares during the period. Coatue Management LLC lifted its position in ARM by 1.8% during the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after acquiring an additional 40,174 shares during the period. Wellington Management Group LLP boosted its stake in ARM by 41.6% during the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after acquiring an additional 631,576 shares in the last quarter. Finally, Schroder Investment Management Group boosted its stake in ARM by 11.0% during the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock worth $206,739,000 after acquiring an additional 187,035 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc is a semiconductor and software intellectual property company headquartered in Cambridge, England. Rather than manufacturing chips, Arm develops processor architectures and technology designs that it licenses to semiconductor companies, device manufacturers and other technology businesses for use in their own products.

Arm’s portfolio includes central processing unit (CPU) architectures and processor cores, graphics processing units (GPUs), systems IP, interconnect technology, security solutions and related software and development tools.