ARM (NASDAQ:ARM) Shares Down 2% – Should You Sell?

Arm Holdings plc (NASDAQ:ARM)’s stock price dropped 2% during mid-day trading on Wednesday . The company traded as low as $123.11 and last traded at $123.36. Approximately 2,680,229 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 10,053,197 shares. The stock had previously closed at $125.91.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Sanford C. Bernstein lowered shares of ARM from a “market perform” rating to an “underperform” rating and set a $100.00 target price for the company. in a research report on Thursday, October 31st. Needham & Company LLC restated a “hold” rating on shares of ARM in a research note on Thursday, November 7th. TD Cowen raised their target price on ARM from $150.00 to $165.00 and gave the company a “buy” rating in a report on Thursday, November 7th. The Goldman Sachs Group upped their price target on ARM from $144.00 to $159.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Finally, Loop Capital boosted their target price on shares of ARM from $130.00 to $180.00 and gave the stock a “buy” rating in a research report on Monday, November 11th. Two investment analysts have rated the stock with a sell rating, six have given a hold rating, eighteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, ARM presently has a consensus rating of “Moderate Buy” and a consensus target price of $150.32.

ARM Price Performance

The company has a market capitalization of $129.26 billion, a price-to-earnings ratio of 205.60, a P/E/G ratio of 7.15 and a beta of 4.67. The firm’s fifty day moving average price is $138.49 and its 200-day moving average price is $143.10.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Wednesday, November 6th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.04. The company had revenue of $844.00 million for the quarter, compared to analysts’ expectations of $810.03 million. ARM had a return on equity of 13.69% and a net margin of 18.13%. The business’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.36 earnings per share. On average, research analysts predict that Arm Holdings plc will post 0.79 earnings per share for the current year.

Institutional Trading of ARM

Large investors have recently bought and sold shares of the business. B. Riley Wealth Advisors Inc. grew its position in shares of ARM by 7.5% during the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 4,833 shares of the company’s stock worth $683,000 after buying an additional 337 shares during the period. Franklin Resources Inc. grew its holdings in ARM by 21.7% in the third quarter. Franklin Resources Inc. now owns 1,281,484 shares of the company’s stock worth $183,265,000 after purchasing an additional 228,467 shares during the period. Wilmington Savings Fund Society FSB bought a new stake in ARM in the third quarter valued at $419,000. Virtu Financial LLC acquired a new position in shares of ARM during the third quarter valued at about $1,163,000. Finally, Hobbs Group Advisors LLC boosted its position in shares of ARM by 7.4% during the 3rd quarter. Hobbs Group Advisors LLC now owns 1,454 shares of the company’s stock worth $208,000 after purchasing an additional 100 shares in the last quarter. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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.