ARM (NASDAQ:ARM) Trading Down 9.2% Following Analyst Downgrade

Key Points

• ARM Holdings experienced a significant decline of 9.2% in its stock price following an analyst downgrade from Morgan Stanley, which lowered the price target from $180.00 to $171.00.
• Despite the downgrade, other analysts have given ARM ratings that include a "strong-buy" and "overweight," indicating a range of positive outlooks for the company.
• ARM's market cap is currently at $163.68 billion, with a PE ratio of 234.74, highlighting its valuation metrics amidst fluctuating stock performance.

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report) traded down 9.2% during trading on Friday after Morgan Stanley lowered their price target on the stock from $180.00 to $171.00. Morgan Stanley currently has an overweight rating on the stock. ARM traded as low as $153.22 and last traded at $154.93. 8,298,091 shares changed hands during trading, an increase of 56% from the average session volume of 5,326,505 shares. The stock had previously closed at $170.66.

Other research analysts have also recently issued research reports about the stock. Seaport Res Ptn upgraded shares of ARM to a "strong-buy" rating in a report on Monday, August 11th. TD Cowen raised their target price on shares of ARM from $155.00 to $175.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. KeyCorp reiterated an "overweight" rating and set a $190.00 price objective (up previously from $175.00) on shares of ARM in a research note on Thursday, July 31st. Needham & Company LLC reaffirmed a "hold" rating on shares of ARM in a research report on Thursday, July 31st. Finally, Evercore ISI boosted their price target 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. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $167.43.

Hedge Funds Weigh In On ARM

A number of large investors have recently made changes to their positions in the stock. GAMMA Investing LLC boosted its stake in ARM by 126.0% during the third quarter. GAMMA Investing LLC now owns 174 shares of the company's stock valued at $25,000 after buying an additional 97 shares during the period. Huntington National Bank purchased a new stake in ARM during the second quarter valued at about $30,000. FWL Investment Management LLC purchased a new stake in ARM during the second quarter valued at about $34,000. Oliver Lagore Vanvalin Investment Group purchased a new stake in ARM during the second quarter valued at about $39,000. Finally, Brooklyn Investment Group purchased a new stake in ARM during the first quarter valued at about $28,000. 7.53% of the stock is owned by institutional investors.

ARM Stock Down 9.2%

The stock has a 50-day simple moving average of $143.43 and a two-hundred day simple moving average of $134.83. The firm has a market cap of $163.68 billion, a PE ratio of 234.74, a P/E/G ratio of 10.14 and a beta of 4.10.

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

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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