ARM (NASDAQ:ARM) Stock Price Down 4.8% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were down 4.8% during mid-day trading on Wednesday . The company traded as low as $332.00 and last traded at $337.47. Approximately 5,033,808 shares were traded during mid-day trading, a decline of 44% from the average daily volume of 8,975,592 shares. The stock had previously closed at $354.57.

Wall Street Analyst Weigh In

ARM has been the topic of a number of recent analyst reports. Royal Bank Of Canada boosted their target price on ARM from $175.00 to $260.00 and gave the stock an “outperform” rating in a report on Thursday, May 7th. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a report on Monday, April 20th. The Goldman Sachs Group increased their price objective on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a research report on Thursday, May 7th. Barclays raised their target price on shares of ARM from $250.00 to $360.00 and gave the stock an “overweight” rating in a research note on Monday, June 1st. Finally, Sanford C. Bernstein set a $500.00 price target on shares of ARM in a research note on Wednesday, June 17th. Nineteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $279.83.

ARM Stock Performance

The stock has a market capitalization of $360.44 billion, a price-to-earnings ratio of 401.75, a price-to-earnings-growth ratio of 12.48 and a beta of 3.78. The business has a fifty day simple moving average of $299.29 and a 200 day simple moving average of $186.28.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The company had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. On average, sell-side analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insider Buying and Selling at ARM

In other news, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the transaction, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. This trade represents a 48.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Jason Child sold 31,920 shares of ARM stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total transaction of $7,231,156.80. Following the completion of the sale, the chief financial officer owned 174,232 shares of the company’s stock, valued at approximately $39,470,517.28. The trade was a 15.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 248,205 shares of company stock worth $57,741,572 over the last quarter.

Hedge Funds Weigh In On ARM

A number of hedge funds have recently added to or reduced their stakes in ARM. Amundi grew its holdings in shares of ARM by 24.8% during the 1st quarter. Amundi now owns 11,804 shares of the company’s stock worth $1,153,000 after purchasing an additional 2,345 shares in the last quarter. Empowered Funds LLC raised its stake in ARM by 28.8% in the first quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock valued at $522,000 after purchasing an additional 1,094 shares in the last quarter. Schnieders Capital Management LLC. lifted its position in ARM by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock worth $393,000 after purchasing an additional 200 shares during the period. Bank of Nova Scotia bought a new stake in ARM during the second quarter worth about $556,000. Finally, State Street Corp grew its stake in ARM by 14.7% during the second quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after buying an additional 56,656 shares in the last quarter. Institutional investors own 7.53% of the company’s stock.

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.