ARM (NASDAQ:ARM) Shares Gap Down - Here's Why

Key Points

• ARM Holdings PLC (NASDAQ:ARM) shares gapped down from a previous close of $153.37 to open at $147.21, closing at $146.90 with significant trading volume of over 3.5 million shares.
• Multiple analysts have issued varied ratings on ARM, with an average recommendation of "Moderate Buy" and a price target of $168.52, reflecting mixed sentiment amid fluctuating target prices.
• The company recently reported a 12.1% increase in revenue year-over-year, reaching $1.05 billion, despite posting earnings of $0.35 EPS, slightly exceeding analysts' expectations.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $153.37, but opened at $147.21. ARM shares last traded at $146.90, with a volume of 3,535,536 shares changing hands.

Wall Street Analyst Weigh In

ARM has been the topic of a number of recent research reports. Wells Fargo & Company upped their price objective on ARM from $145.00 to $175.00 and gave the stock an "overweight" rating in a research report on Monday, July 21st. 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. BNP Paribas Exane raised ARM from a "neutral" rating to an "outperform" rating and set a $210.00 price objective on the stock in a research report on Wednesday, July 16th. Raymond James Financial upped their price objective on ARM from $140.00 to $165.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. Finally, Seaport Res Ptn raised ARM to a "strong-buy" rating in a research report on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $168.52.

ARM Stock Down 2.5%

The stock has a market cap of $150.99 billion, a PE ratio of 216.53, a price-to-earnings-growth ratio of 9.79 and a beta of 4.17. The firm has a fifty day moving average of $145.30 and a 200 day moving average of $131.80.

ARM (NASDAQ:ARM - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $0.35 earnings per share (EPS) for the quarter, beating 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 the consensus estimate of $1.06 billion. During the same quarter in the prior year, the firm posted $0.40 earnings per share. ARM's revenue for the quarter was up 12.1% on a year-over-year basis. On average, equities research analysts forecast that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ARM. Sowell Financial Services LLC purchased a new position in shares of ARM during the 1st quarter worth approximately $229,000. Swedbank AB purchased a new position in shares of ARM during the 1st quarter worth approximately $18,667,000. Integrated Wealth Concepts LLC increased its stake in shares of ARM by 24.0% during the 1st quarter. Integrated Wealth Concepts LLC now owns 10,465 shares of the company's stock worth $1,118,000 after purchasing an additional 2,025 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of ARM by 12.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 107,728 shares of the company's stock worth $11,505,000 after purchasing an additional 11,953 shares in the last quarter. Finally, SCS Capital Management LLC purchased a new position in shares of ARM during the 1st quarter worth approximately $579,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Company Profile

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.