ARM (NASDAQ:ARM) Shares Gap Down – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares gapped down prior to trading on Tuesday . The stock had previously closed at $148.77, but opened at $143.82. ARM shares last traded at $139.0020, with a volume of 1,748,559 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Guggenheim lifted their target price on shares of ARM from $201.00 to $240.00 and gave the stock a “buy” rating in a research note on Wednesday, March 25th. Barclays reiterated an “overweight” rating and issued a $165.00 target price on shares of ARM in a research note on Thursday, March 26th. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and raised their price objective for the company from $90.00 to $205.00 in a research report on Friday, March 20th. TD Cowen cut their price objective on shares of ARM from $190.00 to $165.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Finally, Citigroup lowered shares of ARM from a “buy” rating to a “hold” rating in a research report on Tuesday, January 13th. Eighteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $172.13.

ARM Stock Up 3.5%

The business’s 50-day moving average price is $128.10 and its 200 day moving average price is $134.11. The company has a market capitalization of $157.32 billion, a P/E ratio of 198.55, a price-to-earnings-growth ratio of 6.65 and a beta of 3.33.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Thursday, February 5th. The company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. ARM had a net margin of 17.15% and a return on equity of 14.01%. The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same period last year, the business earned $0.39 earnings per share. ARM’s revenue was up 26.3% compared to the same quarter last year. Analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

Insider Activity at ARM

In other ARM news, CEO Rene A. Haas sold 7,986 shares of ARM stock in a transaction that occurred on Thursday, March 26th. The shares were sold at an average price of $160.86, for a total transaction of $1,284,627.96. Following the completion of the sale, the chief executive officer directly owned 282,979 shares in the company, valued at $45,520,001.94. The trade was a 2.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the sale, the chief financial officer owned 174,706 shares of the company’s stock, valued at approximately $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 53,133 shares of company stock valued at $8,288,586.

Institutional Investors Weigh In On ARM

Hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC lifted its position in ARM by 126.0% during the third quarter. GAMMA Investing LLC now owns 174 shares of the company’s stock valued at $25,000 after purchasing an additional 97 shares during the last quarter. Grey Fox Wealth Advisors LLC bought a new stake in ARM during the third quarter valued at approximately $28,000. FWL Investment Management LLC bought a new stake in ARM during the second quarter valued at approximately $34,000. Mcguire Capital Advisors Inc. bought a new stake in ARM during the fourth quarter valued at approximately $30,000. Finally, Strategic Investment Solutions Inc. IL lifted its position in ARM by 238.1% during the third quarter. Strategic Investment Solutions Inc. IL now owns 284 shares of the company’s stock valued at $40,000 after purchasing an additional 200 shares during the last quarter. 7.53% of the stock is currently owned by institutional investors.

About ARM

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.