ARM (NASDAQ:ARM) Stock Price Down 1.8% - Here's What Happened

Key Points

• ARM shares fell 1.8% to $199.78 in midday trading, with volume 47% below the average session volume.
• Analysts hold a consensus “Moderate Buy” rating, with an average price target of $296.38; ratings include 18 Buys, seven Holds, and one Sell.
• In its latest quarter, ARM reported adjusted earnings of $0.52 per share and revenue of $1.44 billion, beating estimates; revenue rose 27.1% year over year.

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM - Get Free Report)'s stock price fell 1.8% during mid-day trading on Thursday. The company traded as low as $190.00 and last traded at $199.78. Approximately 3,941,386 shares were traded during mid-day trading, a decline of 47% from the average session volume of 7,439,673 shares. The stock had previously closed at $203.36.

Analysts Set New Price Targets

ARM has been the subject of several research reports. Needham & Company LLC reiterated a "buy" rating and set a $255.00 price target on shares of ARM in a research report on Thursday, November 5th. Bank of America restated a "neutral" rating and issued a $335.00 price objective (up from $245.00) on shares of ARM in a report on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ARM in a research note on Thursday, October 15th. Guggenheim reaffirmed a "buy" rating and set a $255.00 target price on shares of ARM in a report on Thursday, July 30th. Finally, Benchmark initiated coverage on shares of ARM in a research note on Thursday, July 16th. They issued a "hold" rating on the stock. Eighteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $296.38.

ARM Trading Down 1.8%

The company has a fifty day simple moving average of $249.89 and a 200-day simple moving average of $231.04. The company has a market capitalization of $213.38 billion, a PE ratio of 229.63, a PEG ratio of 4.81 and a beta of 3.93.

ARM (NASDAQ:ARM - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.48 by $0.04. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.38 billion. ARM had a return on equity of 11.57% and a net margin of 17.13%. The company's revenue for the quarter was up 27.1% on a year-over-year basis. During the same period last year, the company earned $0.39 EPS. On average, equities analysts predict that Arm Holdings PLC Sponsored ADR will post 1.21 EPS for the current fiscal year.

Insider Buying and Selling

In other ARM news, CFO Jason Child sold 10,400 shares of the business's stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the transaction, the chief financial officer directly owned 153,442 shares in the company, valued at $46,032,600. The trade was a 6.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of ARM

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Hyperion Asset Management Ltd lifted its holdings in ARM by 36.9% in the third quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company's stock valued at $210,662,000 after acquiring an additional 195,942 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in ARM during the third quarter worth $179,998,000. First Trust Advisors LP increased its stake in ARM by 55.5% during the third quarter. First Trust Advisors LP now owns 543,774 shares of the company's stock worth $157,509,000 after acquiring an additional 194,147 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company's stock valued at $142,983,000 after purchasing an additional 872,644 shares during the period. Finally, ProShare Advisors LLC raised its position in ARM by 2.2% in the third quarter. ProShare Advisors LLC now owns 421,817 shares of the company's stock valued at $122,184,000 after purchasing an additional 9,242 shares during the period. Institutional investors and hedge funds own 7.53% of the company's stock.

About ARM

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them. Arm's offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.

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