ARM (NASDAQ:ARM) Shares Gap Down – Here’s Why

Shares of Arm Holdings plc (NASDAQ:ARM) gapped down prior to trading on Wednesday . The stock had previously closed at $152.58, but opened at $147.80. ARM shares last traded at $146.00, with a volume of 2,007,903 shares changing hands.

Analyst Ratings Changes

ARM has been the topic of several recent analyst reports. TD Cowen upgraded ARM to a “strong-buy” rating in a research note on Monday, September 16th. Daiwa Capital Markets upgraded ARM from a “neutral” rating to an “outperform” rating and set a $130.00 target price on the stock in a research report on Thursday, August 8th. Loop Capital boosted their target price on ARM from $120.00 to $130.00 and gave the stock a “buy” rating in a research note on Tuesday, August 6th. Raymond James assumed coverage on shares of ARM in a research note on Friday, September 13th. They issued an “outperform” rating and a $160.00 price target on the stock. Finally, William Blair started coverage on shares of ARM in a research report on Wednesday, September 18th. They set an “outperform” rating for the company. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have issued a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $138.57.

ARM Stock Performance

The business has a 50 day moving average of $138.38 and a two-hundred day moving average of $135.61. The firm has a market capitalization of $150.40 billion and a price-to-earnings ratio of 372.27.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, July 31st. The company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05. ARM had a net margin of 12.12% and a return on equity of 18.97%. The business had revenue of $939.00 million during the quarter, compared to analyst estimates of $905.53 million. During the same quarter in the previous year, the business posted $0.24 EPS. ARM’s quarterly revenue was up 39.1% on a year-over-year basis. On average, equities analysts predict that Arm Holdings plc will post 0.86 EPS for the current fiscal year.

Institutional Trading of ARM

Several institutional investors have recently made changes to their positions in the company. Mark Sheptoff Financial Planning LLC purchased a new stake in shares of ARM during the first quarter valued at approximately $25,000. ORG Partners LLC purchased a new stake in shares of ARM during the 3rd quarter valued at $29,000. Transcendent Capital Group LLC bought a new stake in shares of ARM during the 2nd quarter worth $33,000. Gilliland Jeter Wealth Management LLC boosted its holdings in shares of ARM by 83.0% in the 3rd quarter. Gilliland Jeter Wealth Management LLC now owns 258 shares of the company’s stock worth $37,000 after buying an additional 117 shares during the last quarter. Finally, RiverPark Advisors LLC grew its position in ARM by 45.3% during the second quarter. RiverPark Advisors LLC now owns 247 shares of the company’s stock valued at $40,000 after buying an additional 77 shares during the period. Institutional investors own 7.53% of the company’s stock.

About ARM

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services.