ARM (NASDAQ:ARM) Trading Down 2.5% – Should You Sell?

Arm Holdings plc (NASDAQ:ARM)’s share price traded down 2.5% on Friday . The stock traded as low as $129.60 and last traded at $133.37. 5,498,108 shares changed hands during mid-day trading, a decline of 5% from the average session volume of 5,758,661 shares. The stock had previously closed at $136.72.

Analyst Ratings Changes

Several brokerages recently issued reports on ARM. Barclays raised their target price on ARM from $125.00 to $145.00 and gave the stock an “overweight” rating in a research report on Thursday, November 7th. Citigroup raised their price objective on ARM from $150.00 to $170.00 and gave the stock a “buy” rating in a research report on Thursday, August 1st. JPMorgan Chase & Co. upped their target price on ARM from $140.00 to $160.00 and gave the company an “overweight” rating in a report on Thursday, November 7th. The Goldman Sachs Group raised their price target on shares of ARM from $144.00 to $159.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Finally, Benchmark started coverage on shares of ARM in a research note on Monday, September 16th. They issued a “hold” rating on the stock. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, eighteen have given a buy rating and one has given 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 target price of $150.32.

ARM Stock Performance

The firm has a market cap of $139.75 billion, a P/E ratio of 222.29, a price-to-earnings-growth ratio of 6.66 and a beta of 5.40. The stock’s 50 day simple moving average is $143.07 and its 200 day simple moving average is $141.21.

ARM (NASDAQ:ARM) last posted its earnings results on Wednesday, November 6th. The company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. The company had revenue of $844.00 million for 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 firm’s revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.36 EPS. As a group, analysts forecast that Arm Holdings plc will post 0.79 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Transcendent Capital Group LLC bought a new position in ARM during the 2nd quarter valued at $33,000. ORG Partners LLC bought a new position in shares of ARM during the third quarter valued at about $29,000. RiverPark Advisors LLC boosted its holdings in ARM by 45.3% during the second quarter. RiverPark Advisors LLC now owns 247 shares of the company’s stock worth $40,000 after purchasing an additional 77 shares during the last quarter. Mather Group LLC. bought a new stake in ARM in the 2nd quarter worth about $41,000. Finally, Gilliland Jeter Wealth Management LLC increased its stake in ARM by 83.0% in the 3rd quarter. Gilliland Jeter Wealth Management LLC now owns 258 shares of the company’s stock valued at $37,000 after buying an additional 117 shares during the last quarter. 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.