ARM (NASDAQ:ARM) Shares Down 1.9% – Time to Sell?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded down 1.9% during mid-day trading on Monday . The stock traded as low as $233.29 and last traded at $238.78. 3,269,135 shares traded hands during trading, a decline of 60% from the average session volume of 8,174,105 shares. The stock had previously closed at $243.32.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on ARM shares. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Jefferies Financial Group reiterated a “buy” rating and set a $320.00 target price on shares of ARM in a research note on Monday, July 20th. New Street Research upgraded shares of ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price for the company in a research note on Thursday, July 30th. Guggenheim reissued a “buy” rating and set a $255.00 price target on shares of ARM in a report on Thursday, July 30th. Finally, Morgan Stanley raised their price target on ARM from $202.00 to $212.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, ARM presently has an average rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Trading Down 1.9%

The company has a market cap of $255.04 billion, a P/E ratio of 246.17, a PEG ratio of 7.21 and a beta of 3.90. The business’s 50 day simple moving average is $303.00 and its 200 day simple moving average is $230.18.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the firm posted $0.35 EPS. ARM’s quarterly revenue was up 22.4% compared to the same quarter last year. Sell-side analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Buying and Selling

In related news, insider William Abbey sold 6,566 shares of the business’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $402.72, for a total value of $2,644,259.52. Following the sale, the insider owned 20,563 shares in the company, valued at approximately $8,281,131.36. The trade was a 24.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Laura Kathleen Bartels sold 11,306 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the completion of the sale, the chief accounting officer owned 12,135 shares in the company, valued at approximately $4,765,414.50. This trade represents a 48.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 22,072 shares of company stock worth $8,528,128.

Institutional Investors Weigh In On ARM

A number of institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC lifted its holdings in shares of ARM by 18.7% during the second quarter. GAMMA Investing LLC now owns 406 shares of the company’s stock worth $144,000 after purchasing an additional 64 shares during the period. CreativeOne Wealth LLC increased its stake in ARM by 5.0% in the 4th quarter. CreativeOne Wealth LLC now owns 1,830 shares of the company’s stock valued at $200,000 after buying an additional 87 shares during the period. AdvisorNet Financial Inc raised its position in ARM by 6.2% during the 1st quarter. AdvisorNet Financial Inc now owns 1,681 shares of the company’s stock worth $254,000 after buying an additional 98 shares during the last quarter. TD Waterhouse Canada Inc. raised its position in ARM by 0.5% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 18,674 shares of the company’s stock worth $6,309,000 after buying an additional 102 shares during the last quarter. Finally, Moors & Cabot Inc. lifted its stake in shares of ARM by 5.3% in the 3rd quarter. Moors & Cabot Inc. now owns 2,050 shares of the company’s stock worth $290,000 after acquiring an additional 103 shares during the period. 7.53% of the stock is owned by 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.