ARM (NASDAQ:ARM) Stock Price Down 2.2% - What's Next?

Key Points

• ARM Holdings PLC's stock price fell by 2.2%, trading down to $165.71 on Wednesday, with a significant volume drop of 20% compared to average trading levels.
• Despite the decline, analysts remain optimistic with several firms upgrading their price targets; Evercore ISI and KeyCorp now have targets of $178.00 and $190.00 respectively, while the average target is $168.14.
• Institutional interest is strong, as Goldman Sachs increased its stake in ARM by 59.3%, reflecting continued confidence from major investors in the company's future prospects.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s share price fell 2.2% during trading on Wednesday . The stock traded as low as $160.85 and last traded at $165.71. 4,289,242 shares traded hands during trading, a decline of 20% from the average session volume of 5,381,584 shares. The stock had previously closed at $169.38.

Wall Street Analysts Forecast Growth

Several research firms have commented on ARM. Evercore ISI lifted their target price on shares of ARM from $173.00 to $178.00 and gave the stock an "outperform" rating in a research report on Thursday, September 11th. KeyCorp restated an "overweight" rating and set a $190.00 price target (up previously from $175.00) on shares of ARM in a research note on Thursday, July 31st. Weiss Ratings restated a "hold (c)" rating on shares of ARM in a research note on Wednesday, October 8th. Morgan Stanley reduced their price target on shares of ARM from $180.00 to $171.00 and set an "overweight" rating for the company in a research report on Thursday, October 9th. Finally, Mizuho boosted their price target on shares of ARM from $160.00 to $180.00 and gave the company an "outperform" rating in a research report on Thursday, July 3rd. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, ARM presently has a consensus rating of "Moderate Buy" and a consensus target price of $168.14.

ARM Stock Down 2.2%

The firm's 50-day moving average is $148.13 and its 200-day moving average is $138.38. The company has a market capitalization of $175.07 billion, a PE ratio of 251.08, a price-to-earnings-growth ratio of 11.18 and a beta of 4.10.

ARM (NASDAQ:ARM - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.35 earnings per share (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 analyst estimates of $1.06 billion. During the same period in the previous year, the business earned $0.40 earnings per share. The firm's quarterly revenue was up 12.1% compared to the same quarter last year. As a group, equities research analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. lifted its stake in ARM by 59.3% in the first quarter. Goldman Sachs Group Inc. now owns 6,574,854 shares of the company's stock worth $702,129,000 after purchasing an additional 2,446,224 shares during the last quarter. Schroder Investment Management Group lifted its stake in ARM by 41.7% in the second quarter. Schroder Investment Management Group now owns 4,745,957 shares of the company's stock worth $767,611,000 after purchasing an additional 1,396,684 shares during the last quarter. Sustainable Growth Advisers LP lifted its stake in ARM by 116.8% in the second quarter. Sustainable Growth Advisers LP now owns 3,457,220 shares of the company's stock worth $559,171,000 after purchasing an additional 1,862,626 shares during the last quarter. Bank of America Corp DE lifted its stake in ARM by 12.8% in the second quarter. Bank of America Corp DE now owns 1,476,743 shares of the company's stock worth $238,848,000 after purchasing an additional 168,149 shares during the last quarter. Finally, Franklin Resources Inc. lifted its stake in ARM by 27.9% in the second quarter. Franklin Resources Inc. now owns 1,417,829 shares of the company's stock worth $229,320,000 after purchasing an additional 309,698 shares during the last quarter. 7.53% of the stock is currently 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.

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