ARM (NASDAQ:ARM) Stock Price Down 3.3% - Here's Why

Key Points

• ARM Holdings PLC shares fell by 3.3%, closing at $165.61 after trading as low as $163.61, with a 20% drop in trading volume compared to the average.
• Analysts have a consensus rating of Moderate Buy for ARM, with price targets ranging from $155 to $210 and a consensus price target of $167.43.
• In the most recent quarter, ARM reported earnings of $0.35 per share, slightly exceeding analyst expectations, with a year-over-year revenue increase of 12.1%.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) shares dropped 3.3% during trading on Friday . The stock traded as low as $163.61 and last traded at $165.61. Approximately 4,307,272 shares traded hands during trading, a decline of 20% from the average daily volume of 5,397,188 shares. The stock had previously closed at $171.19.

Analysts Set New Price Targets

ARM has been the subject of several research analyst reports. Seaport Res Ptn upgraded ARM to a "strong-buy" rating in a research report on Monday, August 11th. BNP Paribas upgraded ARM from a "neutral" rating to an "outperform" rating and raised their price target for the stock from $110.00 to $210.00 in a research report on Wednesday, July 16th. TD Cowen raised their price target on ARM from $155.00 to $175.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Weiss Ratings restated a "hold (c)" rating on shares of ARM in a research report on Wednesday, October 8th. Finally, Rosenblatt Securities restated a "buy" rating and set a $180.00 price target on shares of ARM in a research report on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $167.43.

ARM Price Performance

The firm has a market capitalization of $174.97 billion, a price-to-earnings ratio of 250.92, a PEG ratio of 11.13 and a beta of 4.10. The firm has a 50 day moving average price of $146.44 and a 200-day moving average price of $136.70.

ARM (NASDAQ:ARM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.34 by $0.01. ARM had a return on equity of 15.56% and a net margin of 16.96%.The company had revenue of $1.05 billion for the quarter, compared to analysts' expectations of $1.06 billion. During the same period last year, the firm earned $0.40 earnings per share. ARM's quarterly revenue was up 12.1% on a year-over-year basis. Equities research analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 earnings per share for the current year.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently bought and sold shares of ARM. Farther Finance Advisors LLC raised its stake in ARM by 85.7% in the first quarter. Farther Finance Advisors LLC now owns 1,616 shares of the company's stock valued at $173,000 after buying an additional 746 shares in the last quarter. Ritholtz Wealth Management raised its stake in ARM by 24.8% in the first quarter. Ritholtz Wealth Management now owns 2,377 shares of the company's stock valued at $254,000 after buying an additional 473 shares in the last quarter. Janney Montgomery Scott LLC raised its stake in ARM by 17.7% in the first quarter. Janney Montgomery Scott LLC now owns 31,577 shares of the company's stock valued at $3,372,000 after buying an additional 4,742 shares in the last quarter. Sowell Financial Services LLC acquired a new stake in ARM in the first quarter valued at $229,000. Finally, QRG Capital Management Inc. raised its stake in ARM by 125.1% in the first quarter. QRG Capital Management Inc. now owns 8,989 shares of the company's stock valued at $960,000 after buying an additional 4,995 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

About ARM

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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