ARM (NASDAQ:ARM) Shares Down 5.8% After Insider Selling

Key Points

• ARM shares fell 5.8% on Wednesday after insider selling news, with the stock trading as low as $300.88 and finishing around $302.71 on heavier-than-average volume.
• Multiple insiders sold shares, including William Abbey and Charlotte Claire Eaton, in transactions totaling millions of dollars and reducing their ownership stakes.
• Analyst sentiment remains mostly positive, with 20 Buy ratings and an average “Moderate Buy” rating, though the consensus price target of $208.79 sits well below ARM’s recent trading level.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s stock price fell 5.8% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $300.88 and last traded at $302.71. 9,255,650 shares changed hands during mid-day trading, an increase of 13% from the average session volume of 8,209,224 shares. The stock had previously closed at $321.22.

Specifically, insider William Abbey sold 2,300 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $305.82, for a total transaction of $703,386.00. Following the completion of the transaction, the insider directly owned 31,329 shares of the company's stock, valued at $9,581,034.78. The trade was a 6.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charlotte Claire Eaton sold 7,805 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $290.01, for a total transaction of $2,263,528.05. Following the completion of the sale, the insider owned 5,000 shares in the company, valued at $1,450,050. This represents a 60.95% decrease in their position. The SEC filing for this sale provides additional information. In other ARM news, insider William Abbey sold 4,655 shares of ARM stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $287.03, for a total value of $1,336,124.65. Following the completion of the sale, the insider owned 33,629 shares of the company's stock, valued at approximately $9,652,531.87. The trade was a 12.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Analyst Upgrades and Downgrades

ARM has been the topic of a number of research reports. Mizuho raised their price target on ARM from $230.00 to $255.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 6th. UBS Group reduced their price objective on ARM from $175.00 to $170.00 and set a "buy" rating for the company in a research report on Thursday, February 5th. Morgan Stanley reissued an "equal weight" rating and issued a $150.00 target price (up from $135.00) on shares of ARM in a report on Tuesday, April 7th. Wells Fargo & Company boosted their price target on ARM from $220.00 to $255.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of ARM in a research report on Thursday, May 7th. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, ARM currently has an average rating of "Moderate Buy" and a consensus target price of $208.79.

ARM Price Performance

The company has a 50-day moving average of $186.99 and a two-hundred day moving average of $145.67. The company has a market capitalization of $319.82 billion, a PE ratio of 360.37, a P/E/G ratio of 11.13 and a beta of 3.40.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The firm had revenue of $1.49 billion for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. As a group, research analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Hedge Funds Weigh In On ARM

Hedge funds have recently modified their holdings of the company. Compound Planning Inc. raised its position in shares of ARM by 4.6% during the 3rd quarter. Compound Planning Inc. now owns 1,569 shares of the company's stock valued at $222,000 after purchasing an additional 69 shares during the period. Rathbones Group PLC increased its stake in ARM by 0.7% in the 3rd quarter. Rathbones Group PLC now owns 10,552 shares of the company's stock worth $1,493,000 after buying an additional 70 shares in the last quarter. Kovack Advisors Inc. increased its stake in ARM by 2.0% in the 3rd quarter. Kovack Advisors Inc. now owns 3,602 shares of the company's stock worth $510,000 after buying an additional 72 shares in the last quarter. Murphy & Mullick Capital Management Corp raised its holdings in ARM by 9.1% during the third quarter. Murphy & Mullick Capital Management Corp now owns 926 shares of the company's stock valued at $135,000 after acquiring an additional 77 shares during the period. Finally, Balboa Wealth Partners lifted its position in shares of ARM by 2.7% in the third quarter. Balboa Wealth Partners now owns 3,108 shares of the company's stock valued at $440,000 after acquiring an additional 83 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors.

About ARM

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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