ARM (NASDAQ:ARM) Trading Down 7.8% – Here’s Why

by · The Cerbat Gem

Arm Holdings plc (NASDAQ:ARM – Get Free Report)’s stock price fell 7.8% on Tuesday . The company traded as low as $147.00 and last traded at $149.17. 4,345,974 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 11,328,024 shares. The stock had previously closed at $161.82.

Analysts Set New Price Targets

Several research firms recently commented on ARM. Barclays boosted their price target on ARM from $105.00 to $125.00 and gave the stock an “overweight” rating in a research note on Thursday, August 1st. Raymond James initiated coverage on ARM in a research report on Friday, September 13th. They issued an “outperform” rating and a $160.00 target price on the stock. Daiwa America raised shares of ARM from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 8th. Sanford C. Bernstein upgraded shares of ARM from an “underperform” rating to a “market perform” rating and increased their price objective for the company from $92.00 to $100.00 in a research note on Wednesday, August 7th. Finally, Deutsche Bank Aktiengesellschaft upped their target price on shares of ARM from $82.00 to $105.00 and gave the company a “hold” rating in a research note on Thursday, August 1st. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, ARM presently has an average rating of “Moderate Buy” and a consensus target price of $134.91.

Get Our Latest Research Report on ARM

ARM Stock Performance

The business’s 50 day simple moving average is $135.66 and its 200-day simple moving average is $134.74. The stock has a market capitalization of $162.00 billion and a price-to-earnings ratio of 397.34.

ARM (NASDAQ:ARM – Get Free Report) last issued its quarterly earnings data on Wednesday, July 31st. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The business had revenue of $939.00 million during the quarter, compared to analyst estimates of $905.53 million. ARM had a return on equity of 18.97% and a net margin of 12.12%. The business’s revenue for the quarter was up 39.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.24 EPS. As a group, sell-side analysts expect that Arm Holdings plc will post 0.86 EPS for the current year.

Hedge Funds Weigh In On ARM

Several large investors have recently bought and sold shares of ARM. Sei Investments Co. lifted its holdings in shares of ARM by 551.6% in the second quarter. Sei Investments Co. now owns 579,330 shares of the company’s stock valued at $94,790,000 after buying an additional 490,415 shares during the period. State of Michigan Retirement System acquired a new stake in ARM in the 1st quarter valued at about $28,523,000. Marsico Capital Management LLC acquired a new stake in ARM in the 2nd quarter valued at about $33,207,000. Zevenbergen Capital Investments LLC bought a new position in shares of ARM during the 1st quarter valued at about $23,704,000. Finally, ProShare Advisors LLC acquired a new position in shares of ARM in the 2nd quarter worth approximately $16,611,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

About ARM

(Get Free Report)

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.

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