ARM (NASDAQ:ARM) Shares Down 5.2% - Here's What Happened

Key Points

• ARM shares fell 5.2% to about $267.85, with trading volume roughly 63% below the average. The stock remains highly valued, with a market capitalization of $286.1 billion and a P/E ratio above 276.
• Analyst sentiment remains broadly positive: 18 analysts rate ARM a Buy, seven rate it a Hold and one rates it a Sell, producing a “Moderate Buy” consensus and an average price target of $285.33.
• ARM recently beat quarterly estimates, reporting $0.45 in EPS versus expectations of $0.40 and revenue of $1.29 billion, up 22.4% year over year. However, insiders sold about 164,088 shares worth $41.1 million over the past quarter.

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) traded down 5.2% on Monday . The stock traded as low as $267.31 and last traded at $267.85. Approximately 3,159,594 shares were traded during trading, a decline of 63% from the average daily volume of 8,466,057 shares. The stock had previously closed at $282.57.

Analysts Set New Price Targets

ARM has been the topic of a number of recent analyst reports. Guggenheim reissued a "buy" rating and set a $255.00 price target on shares of ARM in a report on Thursday, July 30th. Royal Bank Of Canada decreased their price objective on shares of ARM from $475.00 to $340.00 and set an "outperform" rating for the company in a research report on Thursday, July 30th. Rosenblatt Securities lowered their target price on shares of ARM from $270.00 to $250.00 and set a "buy" rating on the stock in a research note on Friday, July 31st. Benchmark initiated coverage on ARM in a research report on Thursday, July 16th. They set a "hold" rating on the stock. Finally, Jefferies Financial Group restated a "buy" rating and issued a $320.00 price target on shares of ARM in a research note on Monday, July 20th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $285.33.

ARM Trading Down 5.2%

The company has a market cap of $286.09 billion, a price-to-earnings ratio of 276.14, a P/E/G ratio of 8.38 and a beta of 3.91. The stock's fifty day simple moving average is $323.52 and its 200 day simple moving average is $219.49.

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

Insider Activity

In related news, CFO Jason Child sold 31,920 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was 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 directly owned 174,232 shares of the company's stock, valued at approximately $39,470,517.28. This trade represents a 15.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charlotte Claire Eaton sold 7,805 shares of ARM stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the sale, the insider owned 5,000 shares of the company's stock, valued at approximately $1,450,050. This represents a 60.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 164,088 shares of company stock worth $41,099,903 over the last quarter.

Institutional Trading of ARM

Institutional investors and hedge funds have recently bought and sold shares of the business. Syntax Research Inc. purchased a new position in shares of ARM in the 1st quarter valued at about $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in shares of ARM during the first quarter worth approximately $30,000. Mcguire Capital Advisors Inc. acquired a new stake in ARM in the fourth quarter valued at approximately $30,000. Navalign LLC acquired a new stake in ARM in the fourth quarter valued at approximately $33,000. Finally, FWL Investment Management LLC purchased a new position in ARM in the second quarter worth approximately $34,000. 7.53% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source