ARM (NASDAQ:ARM) Trading Down 3.2% – Time to Sell?

Arm Holdings plc (NASDAQ:ARM)’s stock price dropped 3.2% during mid-day trading on Friday . The company traded as low as $160.87 and last traded at $162.12. Approximately 2,969,508 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 7,086,112 shares. The stock had previously closed at $167.47.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. Evercore ISI raised their target price on shares of ARM from $176.00 to $202.00 and gave the company an “outperform” rating in a report on Thursday. Raymond James increased their price target on shares of ARM from $160.00 to $175.00 and gave the stock an “outperform” rating in a research note on Thursday. TD Cowen lifted their price objective on shares of ARM from $150.00 to $165.00 and gave the company a “buy” rating in a research note on Thursday, November 7th. Barclays increased their target price on shares of ARM from $145.00 to $155.00 and gave the stock an “overweight” rating in a research note on Friday, January 17th. Finally, The Goldman Sachs Group lifted their target price on ARM from $159.00 to $174.00 and gave the company a “buy” rating in a research note on Thursday. Two research analysts have rated the stock with a sell rating, six have given a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $162.17.

ARM Stock Performance

The company has a market cap of $170.32 billion, a price-to-earnings ratio of 270.92, a price-to-earnings-growth ratio of 7.46 and a beta of 4.56. The stock’s fifty day simple moving average is $144.13 and its two-hundred day simple moving average is $140.00.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, November 6th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.04. The company had revenue of $844.00 million during the quarter, compared to analyst estimates of $810.03 million. ARM had a net margin of 18.13% and a return on equity of 13.69%. The business’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.36 earnings per share. Analysts predict that Arm Holdings plc will post 0.84 EPS for the current fiscal year.

Institutional Investors Weigh In On ARM

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Tufton Capital Management lifted its position in shares of ARM by 1.5% during the fourth quarter. Tufton Capital Management now owns 4,425 shares of the company’s stock worth $546,000 after purchasing an additional 65 shares during the last quarter. Valley National Advisers Inc. boosted its stake in ARM by 13.3% in the fourth quarter. Valley National Advisers Inc. now owns 613 shares of the company’s stock valued at $75,000 after acquiring an additional 72 shares during the period. Hexagon Capital Partners LLC grew its holdings in shares of ARM by 14.0% during the third quarter. Hexagon Capital Partners LLC now owns 627 shares of the company’s stock valued at $90,000 after purchasing an additional 77 shares during the last quarter. Zullo Investment Group Inc. lifted its holdings in shares of ARM by 4.6% in the 4th quarter. Zullo Investment Group Inc. now owns 1,915 shares of the company’s stock worth $236,000 after purchasing an additional 85 shares during the last quarter. Finally, Gladstone Institutional Advisory LLC boosted its holdings in shares of ARM by 3.0% during the fourth quarter. Gladstone Institutional Advisory LLC now owns 3,319 shares of the company’s stock valued at $409,000 after acquiring an additional 98 shares during the period. Hedge funds and other 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.