Primecap Management Co. CA Sells 273,010 Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)

Key Points

• Primecap Management Co. CA has reduced its stake in ARM Holdings PLC by 49.9%, owning 273,610 shares worth $29.22 million after selling 273,010 shares in the first quarter.
• ARM reported earnings of $0.35 per share in the last quarter, exceeding analysts' expectations, with a revenue of $1.05 billion, which is 12.1% up from the previous year.
• Several brokerages have increased their price targets for ARM, with Morgan Stanley setting a new target at $194.00, reflecting a positive outlook in response to the company's performance.

Primecap Management Co. CA lessened its stake in ARM Holdings PLC Sponsored ADR (NASDAQ:ARM - Free Report) by 49.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 273,610 shares of the company's stock after selling 273,010 shares during the period. Primecap Management Co. CA's holdings in ARM were worth $29,219,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Goldman Sachs Group Inc. lifted its stake in shares of 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 acquiring an additional 2,446,224 shares during the period. iA Global Asset Management Inc. raised its holdings in ARM by 4.4% during the 1st quarter. iA Global Asset Management Inc. now owns 14,411 shares of the company's stock worth $1,539,000 after purchasing an additional 606 shares during the last quarter. Maxi Investments CY Ltd acquired a new position in shares of ARM in the 1st quarter worth approximately $911,000. Atria Wealth Solutions Inc. boosted its stake in shares of ARM by 355.9% in the 1st quarter. Atria Wealth Solutions Inc. now owns 22,113 shares of the company's stock valued at $2,361,000 after purchasing an additional 17,263 shares during the last quarter. Finally, Costello Asset Management INC acquired a new stake in shares of ARM during the first quarter worth $256,000. Institutional investors and hedge funds own 7.53% of the company's stock.

Analyst Ratings Changes

A number of brokerages have weighed in on ARM. The Goldman Sachs Group began coverage on ARM in a report on Thursday, July 10th. They set a "neutral" rating and a $160.00 price target for the company. UBS Group decreased their target price on ARM from $185.00 to $175.00 and set a "buy" rating for the company in a research note on Thursday, July 31st. TD Cowen boosted their price target on ARM from $155.00 to $175.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Benchmark reaffirmed a "hold" rating on shares of ARM in a research report on Monday, June 9th. Finally, Raymond James Financial lifted their price objective on shares of ARM from $140.00 to $165.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. One analyst has rated the stock with a sell rating, six have issued a hold rating and nineteen have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $169.67.

ARM Stock Up 2.2%

NASDAQ ARM traded up $2.93 on Friday, reaching $138.50. The company had a trading volume of 3,473,779 shares, compared to its average volume of 5,508,053. The company's fifty day moving average is $147.79 and its 200 day moving average is $134.07. ARM Holdings PLC Sponsored ADR has a 52-week low of $80.00 and a 52-week high of $182.88. The stock has a market capitalization of $146.33 billion, a P/E ratio of 209.85, a P/E/G ratio of 9.06 and a beta of 4.17.

ARM (NASDAQ:ARM - Get Free Report) last posted 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 firm had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter in the prior year, the business posted $0.40 EPS. The business's revenue was up 12.1% compared to the same quarter last year. On average, research analysts expect that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

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.