ARM (NASDAQ:ARM) Shares Down 1.6% - What's Next?

Key Points

• ARM shares fell 1.6% to $249.34 on Wednesday, with trading volume down 48% from the average session.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $285.33, although recent targets range widely from $150 to $500.
• ARM exceeded quarterly expectations, reporting $0.45 in EPS and $1.29 billion in revenue, up 22.4% year over year; however, insiders sold roughly $14 million of stock over the past 90 days and the shares remain highly valued at a P/E ratio above 257.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s stock price fell 1.6% on Wednesday . The stock traded as low as $241.50 and last traded at $249.34. Approximately 4,298,079 shares changed hands during trading, a decline of 48% from the average session volume of 8,267,252 shares. The stock had previously closed at $253.32.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on ARM shares. Sanford C. Bernstein set a $500.00 price target on shares of ARM in a research report on Wednesday, June 17th. The Goldman Sachs Group boosted their target price on ARM from $125.00 to $150.00 and gave the stock a "sell" rating in a research note on Thursday, May 7th. Wells Fargo & Company reduced their target price on ARM from $350.00 to $280.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Rosenblatt Securities decreased their price target on ARM from $270.00 to $250.00 and set a "buy" rating for the company in a research report on Friday, July 31st. Finally, Bank of America reiterated a "neutral" rating on shares of ARM in a report on Thursday, July 30th. Eighteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $285.33.

ARM Stock Down 1.6%

The firm has a market cap of $266.32 billion, a P/E ratio of 257.05, a price-to-earnings-growth ratio of 8.29 and a beta of 3.91. The firm's 50-day simple moving average is $308.74 and its 200 day simple moving average is $227.21.

ARM (NASDAQ:ARM - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.05. The firm had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company's revenue was up 22.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.35 EPS. As a group, analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current year.

Insider Buying and Selling at ARM

In other ARM news, insider William Abbey sold 6,566 shares of the firm's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares of the company's stock, valued at $8,281,131.36. This trade represents a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares in the company, valued at approximately $4,765,414.50. The trade was a 48.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 40,832 shares of company stock valued at $13,962,246.

Institutional Investors Weigh In On ARM

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC raised its holdings in ARM by 18.7% in the second quarter. GAMMA Investing LLC now owns 406 shares of the company's stock worth $144,000 after purchasing an additional 64 shares in the last quarter. CreativeOne Wealth LLC grew its position in shares of ARM by 5.0% in the 4th quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company's stock worth $200,000 after buying an additional 87 shares during the period. AdvisorNet Financial Inc increased its stake in shares of ARM by 6.2% in the 1st 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. Moors & Cabot Inc. lifted its position in ARM by 5.3% during the 3rd quarter. Moors & Cabot Inc. now owns 2,050 shares of the company's stock valued at $290,000 after acquiring an additional 103 shares during the period. Finally, Heritage Trust Co grew its stake in shares of ARM by 5.5% in the 4th quarter. Heritage Trust Co now owns 2,045 shares of the company's stock worth $224,000 after buying an additional 107 shares during the last quarter. 7.53% of the stock is currently 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.

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