ARM (NASDAQ:ARM) Trading Down 2.1% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares traded down 2.1% on Wednesday . The stock traded as low as $268.62 and last traded at $274.58. 4,406,250 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 8,556,351 shares. The stock had previously closed at $280.56.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on ARM. UBS Group reduced their target price on shares of ARM from $360.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Needham & Company LLC restated a “buy” rating and issued a $255.00 price objective on shares of ARM in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of ARM in a report on Thursday, May 7th. Morgan Stanley increased 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. Finally, New Street Research raised 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. 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 stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Price Performance

The firm has a market capitalization of $293.27 billion, a P/E ratio of 283.08, a P/E/G ratio of 7.20 and a beta of 3.90. The stock’s 50 day moving average is $326.47 and its two-hundred day moving average is $215.78.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.45 earnings per share for the quarter, beating 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 business had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the business posted $0.35 earnings per share. ARM’s revenue was up 22.4% compared to the same quarter last year. ARM has set its Q2 2027 guidance at 0.430-0.510 EPS. As a group, equities research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.13 EPS for the current year.

Insiders Place Their Bets

In related news, insider Spencer Collins sold 51,961 shares of ARM stock in a transaction on Monday, May 11th. The stock was sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares of the company’s stock, valued at $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Jason Child sold 31,920 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the sale, the chief financial officer owned 174,232 shares of the company’s stock, valued at $39,470,517.28. This represents a 15.48% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 216,049 shares of company stock worth $52,101,605 over the last three months.

Institutional Trading of ARM

A number of hedge funds have recently modified their holdings of ARM. Northwestern Mutual Wealth Management Co. boosted its stake in ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after acquiring an additional 1,610,403 shares during the last quarter. Employees Provident Fund Board bought a new stake in ARM in the fourth quarter valued at approximately $120,241,000. Arrowstreet Capital Limited Partnership raised its holdings in 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 purchasing an additional 872,644 shares during the period. Janus Henderson Group PLC bought a new position in shares of ARM during the first quarter worth $116,112,000. Finally, SG Americas Securities LLC boosted its position in shares of ARM by 265.6% during the first quarter. SG Americas Securities LLC now owns 971,067 shares of the company’s stock worth $146,903,000 after purchasing an additional 705,459 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

ARM Company Profile

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.