ARM (NASDAQ:ARM) Shares Down 1.2% – Should You Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 1.2% on Wednesday . The company traded as low as $156.21 and last traded at $159.34. 3,628,398 shares traded hands during trading, a decline of 47% from the average session volume of 6,800,221 shares. The stock had previously closed at $161.22.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. TD Cowen decreased their price target on shares of ARM from $190.00 to $165.00 and set a “buy” rating on the stock in a research note on Thursday, February 5th. UBS Group cut their price target on ARM from $175.00 to $170.00 and set a “buy” rating for the company in a report on Thursday, February 5th. Barclays reaffirmed an “overweight” rating and set a $165.00 price objective on shares of ARM in a report on Thursday, March 26th. JPMorgan Chase & Co. lowered their target price on ARM from $180.00 to $145.00 and set an “overweight” rating for the company in a research report on Thursday, February 5th. Finally, Oddo Bhf set a $170.00 target price on shares of ARM in a report on Monday, January 5th. Eighteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $172.33.

ARM Stock Down 1.2%

The company’s 50 day simple moving average is $131.95 and its 200-day simple moving average is $134.41. The firm has a market cap of $168.34 billion, a P/E ratio of 212.45, a P/E/G ratio of 7.10 and a beta of 3.33.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Thursday, February 5th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The firm had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the prior year, the business posted $0.39 earnings per share. The company’s revenue for the quarter was up 26.3% on a year-over-year basis. Equities research analysts predict that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current year.

Insider Buying and Selling at ARM

In other news, CEO Rene A. Haas sold 7,986 shares of ARM stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $160.86, for a total transaction of $1,284,627.96. Following the completion of the sale, the chief executive officer directly owned 282,979 shares in the company, valued at approximately $45,520,001.94. This trade represents a 2.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Jason Child sold 21,280 shares of the business’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the sale, the chief financial officer directly owned 174,706 shares of the company’s stock, valued at $25,921,129.22. This represents a 10.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 53,133 shares of company stock valued at $8,288,586.

Institutional Investors Weigh In On ARM

Large investors have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. increased its position in shares of ARM by 0.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 26,745 shares of the company’s stock worth $2,923,000 after acquiring an additional 173 shares during the period. Fund Advisors of America Inc FL purchased a new stake in shares of ARM in the fourth quarter valued at approximately $663,000. Hsbc Holdings PLC boosted its holdings in shares of ARM by 25.2% in the fourth quarter. Hsbc Holdings PLC now owns 92,992 shares of the company’s stock valued at $10,281,000 after purchasing an additional 18,717 shares during the period. SHP Wealth Management bought a new position in ARM in the fourth quarter worth approximately $69,000. Finally, Employees Provident Fund Board bought a new position in ARM in the fourth quarter worth approximately $120,241,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.