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

Arm Holdings plc (NASDAQ:ARM)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $179.93, but opened at $170.39. ARM shares last traded at $165.05, with a volume of 6,195,782 shares trading hands.

Analysts Set New Price Targets

Several research firms recently issued reports on ARM. The Goldman Sachs Group increased their target price on ARM from $144.00 to $159.00 and gave the stock a “buy” rating in a research note on Thursday, November 7th. Sanford C. Bernstein lowered ARM from a “market perform” rating to an “underperform” rating and set a $100.00 target price on the stock. in a research note on Thursday, October 31st. Susquehanna increased their price target on ARM from $118.00 to $140.00 and gave the company a “neutral” rating in a research report on Wednesday. Needham & Company LLC reaffirmed a “hold” rating on shares of ARM in a research report on Thursday, November 7th. Finally, Wells Fargo & Company increased their price target on ARM from $155.00 to $162.00 and gave the company an “overweight” rating in a research report on Monday, January 13th. Two equities research analysts have rated the stock with a sell rating, six have given a hold rating, eighteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, ARM presently has an average rating of “Moderate Buy” and a consensus price target of $152.09.

ARM Trading Down 8.3 %

The firm has a 50 day simple moving average of $138.72 and a two-hundred day simple moving average of $141.01. The company has a market capitalization of $172.96 billion, a PE ratio of 274.81, a P/E/G ratio of 7.25 and a beta of 4.53.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, November 6th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.26 by $0.04. The business had revenue of $844.00 million during 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 company’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period last year, the firm earned $0.36 EPS. Research analysts expect that Arm Holdings plc will post 0.84 earnings per share for the current fiscal year.

Institutional Trading of ARM

Several hedge funds have recently modified their holdings of the business. American Century Companies Inc. acquired a new position in ARM during the second quarter worth $5,885,000. Envestnet Asset Management Inc. raised its holdings in ARM by 20.0% during the second quarter. Envestnet Asset Management Inc. now owns 37,902 shares of the company’s stock worth $6,202,000 after purchasing an additional 6,311 shares during the last quarter. Blair William & Co. IL raised its holdings in ARM by 128.1% during the second quarter. Blair William & Co. IL now owns 5,520 shares of the company’s stock worth $903,000 after purchasing an additional 3,100 shares during the last quarter. Pacer Advisors Inc. raised its holdings in ARM by 674.8% during the second quarter. Pacer Advisors Inc. now owns 6,493 shares of the company’s stock worth $1,062,000 after purchasing an additional 5,655 shares during the last quarter. Finally, Ensign Peak Advisors Inc acquired a new position in ARM during the second quarter worth $4,729,000. 7.53% of the stock is owned by institutional investors and hedge funds.

ARM Company Profile

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.