ARM (NASDAQ:ARM) Shares Down 4.8% – Here’s Why

Arm Holdings plc (NASDAQ:ARM) shares were down 4.8% during trading on Wednesday . The stock traded as low as $143.12 and last traded at $145.18. Approximately 3,900,203 shares traded hands during mid-day trading, a decline of 65% from the average daily volume of 11,154,844 shares. The stock had previously closed at $152.58.

Analysts Set New Price Targets

ARM has been the subject of a number of research reports. Barclays upped their target price on shares of ARM from $105.00 to $125.00 and gave the company an “overweight” rating in a report on Thursday, August 1st. Guggenheim lifted their target price on ARM from $110.00 to $169.00 and gave the company a “buy” rating in a research report on Tuesday, June 25th. HSBC cut ARM from a “hold” rating to a “reduce” rating in a research report on Monday, July 29th. Sanford C. Bernstein raised ARM from an “underperform” rating to a “market perform” rating and lifted their price objective for the company from $92.00 to $100.00 in a research report on Wednesday, August 7th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $180.00 target price on shares of ARM in a report on Thursday, August 1st. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $138.57.

ARM Price Performance

The company has a 50-day simple moving average of $138.38 and a 200-day simple moving average of $135.61. The firm has a market cap of $148.24 billion and a PE ratio of 372.27.

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

Institutional Investors Weigh In On ARM

Large investors have recently modified their holdings of the business. Mark Sheptoff Financial Planning LLC purchased a new stake in shares of ARM during the 1st quarter valued at $25,000. ORG Partners LLC purchased a new stake in shares of ARM during the third quarter worth about $29,000. Transcendent Capital Group LLC acquired a new position in shares of ARM during the second quarter valued at about $33,000. Gilliland Jeter Wealth Management LLC raised its position 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 valued at $37,000 after purchasing an additional 117 shares during the last quarter. Finally, RiverPark Advisors LLC boosted its stake in ARM by 45.3% in the 2nd quarter. RiverPark Advisors LLC now owns 247 shares of the company’s stock worth $40,000 after purchasing an additional 77 shares in the last quarter. 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.