ARM (NASDAQ:ARM) Shares Down 1.2% - Here's What Happened

Key Points

• ARM Holdings PLC shares have fallen by 1.2%, trading at $169.38 after reaching a low of $167.06 during the day, with a trading volume down 12% compared to average levels.
• Analysts have mixed views, with some raising price targets to as high as $175.00, while the consensus rating remains a "Moderate Buy" with an average price target of $167.43.
• Institutional investments have increased significantly, with Goldman Sachs raising its stake by 59.3% in the first quarter, indicating growing confidence among large investors.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares were down 1.2% during mid-day trading on Tuesday . The company traded as low as $167.06 and last traded at $169.38. Approximately 4,754,568 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 5,386,951 shares. The stock had previously closed at $171.50.

Analysts Set New Price Targets

ARM has been the topic of a number of analyst reports. Seaport Res Ptn raised shares of ARM to a "strong-buy" rating in a research note on Monday, August 11th. Raymond James Financial lifted their price target on shares of ARM from $140.00 to $165.00 and gave the company an "outperform" rating in a research report on Thursday, July 31st. TD Cowen upped their price objective on ARM from $155.00 to $175.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Wells Fargo & Company increased their price objective on ARM from $145.00 to $175.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. Finally, Morgan Stanley lowered their target price on ARM from $180.00 to $171.00 and set an "overweight" rating for the company in a research note on Thursday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $167.43.

ARM Price Performance

The company has a 50 day moving average price of $147.59 and a 200 day moving average price of $138.16. The firm has a market cap of $178.95 billion, a PE ratio of 256.64, a PEG ratio of 10.80 and a beta of 4.10.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.34 by $0.01. ARM had a net margin of 16.96% and a return on equity of 15.56%. The company had revenue of $1.05 billion during the quarter, compared to analysts' expectations of $1.06 billion. During the same quarter last year, the business earned $0.40 EPS. The business's revenue was up 12.1% on a year-over-year basis. On average, equities analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Goldman Sachs Group Inc. lifted its stake in shares of ARM by 59.3% in the first quarter. Goldman Sachs Group Inc. now owns 6,574,854 shares of the company's stock valued at $702,129,000 after purchasing an additional 2,446,224 shares during the period. Sustainable Growth Advisers LP lifted its position in shares of ARM by 116.8% during the 2nd quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company's stock valued at $559,171,000 after acquiring an additional 1,862,626 shares during the period. Schroder Investment Management Group boosted its stake in shares of ARM by 41.7% during the 2nd quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company's stock worth $767,611,000 after acquiring an additional 1,396,684 shares in the last quarter. Invesco Ltd. grew its holdings in shares of ARM by 139.9% in the 2nd quarter. Invesco Ltd. now owns 1,381,906 shares of the company's stock worth $223,509,000 after acquiring an additional 805,886 shares during the period. Finally, Robeco Institutional Asset Management B.V. increased its stake in ARM by 3,853.4% in the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 520,465 shares of the company's stock valued at $84,180,000 after purchasing an additional 507,300 shares in the last quarter. Hedge funds and other institutional investors own 7.53% of the company's stock.

About ARM

Arm Holdings Plc engages in the licensing, marketing, research, and development of microprocessors, systems IP, graphics processing units, physical IP and associated systems IP, software, and tools. It operates through the following geographical segments: United Kingdom, United States, and Other Countries.

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