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

Shares of Arm Holdings PLC Sponsored ADR (NASDAQ:ARM) gapped down before the market opened on Friday. The stock had previously closed at $228.77, but opened at $206.75. ARM shares last traded at $208.0590, with a volume of 1,751,637 shares.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ARM. Morgan Stanley lifted their price objective on ARM from $202.00 to $212.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Guggenheim reiterated a “buy” rating and set a $255.00 target price on shares of ARM in a research report on Thursday, July 30th. Bank of America reissued a “neutral” rating and issued a $335.00 price target (up from $245.00) on shares of ARM in a research note on Thursday, July 30th. Benchmark started coverage on ARM in a report on Thursday, July 16th. They issued a “hold” rating for the company. Finally, New Street Research upgraded ARM from a “neutral” rating to a “buy” rating and set a $260.00 price target for the company in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and a consensus price target of $303.32.

ARM Trading Down 10.9%

The firm has a market capitalization of $217.74 billion, a PE ratio of 210.59, a price-to-earnings-growth ratio of 7.00 and a beta of 3.78. The firm has a 50-day moving average of $259.62 and a two-hundred day moving average of $227.44.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.05. The firm 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 quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.35 earnings per share. Equities research analysts expect that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Buying and Selling at ARM

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

Hedge Funds Weigh In On ARM

A number of hedge funds have recently made changes to their positions in the business. Hyperion Asset Management Ltd boosted its position in ARM by 36.9% during the 3rd quarter. Hyperion Asset Management Ltd now owns 727,273 shares of the company’s stock worth $210,662,000 after purchasing an additional 195,942 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new position in ARM in the third quarter valued at about $179,998,000. 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. 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. Finally, Janus Henderson Group PLC acquired a new position in shares of ARM during the first quarter worth about $116,112,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

About ARM

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.