ARM (NASDAQ:ARM) Stock Price Down 6.9% – Here’s Why

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price fell 6.9% during mid-day trading on Friday. The company traded as low as $226.65 and last traded at $227.80. Approximately 4,738,811 shares were traded during trading, a decline of 38% from the average session volume of 7,595,997 shares. The stock had previously closed at $244.79.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s annualized contract value increased 13% to $1.73 billion, suggesting continued momentum in licensing ahead of its fiscal second-quarter results. Can ARM’s 13% Contract Value Growth Sustain Momentum in Q2?
• Positive Sentiment: Microsoft’s addition of native Python support for Windows on Arm PCs could improve software compatibility and support broader adoption of Arm-based computers. Microsoft Brings Native Python Support to Windows on Arm PCs
• Positive Sentiment: Analysts continue to highlight Arm’s dominant smartphone architecture and expansion into AI data centers as long-term growth opportunities, although those prospects are already reflected in the stock’s premium valuation. Advanced Micro Devices vs. Arm

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. TD Cowen lowered their price target on shares of ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating and set a $260.00 price objective for the company in a report on Thursday, July 30th. KeyCorp increased their price objective on ARM from $300.00 to $430.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. UBS Group reduced their price objective on ARM from $360.00 to $320.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Finally, Wells Fargo & Company lowered their target price on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have given a Hold rating and one has given a Sell 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 $303.32.

ARM Price Performance

The company has a fifty day simple moving average of $267.27 and a two-hundred day simple moving average of $269.32. The company has a market capitalization of $243.31 billion, a P/E ratio of 234.85, a price-to-earnings-growth ratio of 6.76 and a beta of 3.78.

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

Insiders Place Their Bets

In related news, CFO Jason Child sold 10,400 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the sale, the chief financial officer directly owned 153,442 shares in the company, valued at approximately $46,032,600. The trade was a 6.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On ARM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Employees Provident Fund Board bought a new position in shares of ARM in the fourth quarter valued at approximately $120,241,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock worth $142,983,000 after buying an additional 872,644 shares during the last quarter. Janus Henderson Group PLC acquired a new stake in shares of ARM in the first quarter worth $116,112,000. SG Americas Securities LLC lifted its stake in shares of ARM by 265.6% in the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after buying an additional 705,459 shares during the last quarter. Finally, Altshuler Shaham Ltd boosted its holdings in shares of ARM by 202.6% during the 1st quarter. Altshuler Shaham Ltd now owns 478,289 shares of the company’s stock worth $72,356,000 after buying an additional 320,236 shares during the period. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.