ARM (NASDAQ:ARM) Shares Down 7.9% – Should You Sell?

Arm Holdings plc (NASDAQ:ARM) shares dropped 7.9% during trading on Thursday . The company traded as low as $162.50 and last traded at $165.80. Approximately 9,814,471 shares changed hands during trading, an increase of 48% from the average daily volume of 6,635,503 shares. The stock had previously closed at $179.93.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Susquehanna raised their target price on ARM from $118.00 to $140.00 and gave the company a “neutral” rating in a report on Wednesday. UBS Group began coverage on ARM in a research note on Monday, November 25th. They set a “buy” rating and a $160.00 price objective on the stock. Evercore ISI upped their target price on shares of ARM from $173.00 to $176.00 and gave the stock an “outperform” rating in a research note on Thursday, November 7th. The Goldman Sachs Group increased their target price on shares of ARM from $144.00 to $159.00 and gave the company a “buy” rating in a report on Thursday, November 7th. Finally, Loop Capital upped their price objective 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 analysts have rated the stock with a sell rating, six have assigned a hold rating, eighteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $152.09.

ARM Trading Down 2.4 %

The firm has a market cap of $170.29 billion, a PE ratio of 270.87, a price-to-earnings-growth ratio of 8.41 and a beta of 4.53. The stock has a fifty day simple moving average of $140.00 and a two-hundred day simple moving average of $141.03.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, November 6th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.26 by $0.04. ARM had a net margin of 18.13% and a return on equity of 13.69%. The company had revenue of $844.00 million during the quarter, compared to analysts’ expectations of $810.03 million. During the same quarter in the previous year, the company earned $0.36 earnings per share. ARM’s revenue for the quarter was up 4.7% on a year-over-year basis. As a group, sell-side analysts predict that Arm Holdings plc will post 0.84 earnings per share for the current fiscal year.

Institutional Trading of ARM

A number of large investors have recently modified their holdings of ARM. Franklin Resources Inc. raised its stake in ARM by 21.7% in the third quarter. Franklin Resources Inc. now owns 1,281,484 shares of the company’s stock valued at $183,265,000 after purchasing an additional 228,467 shares in the last quarter. International Assets Investment Management LLC increased its holdings in shares of ARM by 14,351.1% in the 3rd quarter. International Assets Investment Management LLC now owns 812,297 shares of the company’s stock worth $1,161,670,000 after buying an additional 806,676 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its position in shares of ARM by 186.8% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 359,105 shares of the company’s stock valued at $52,279,000 after buying an additional 233,909 shares in the last quarter. Rheos Capital Works Inc. lifted its holdings in shares of ARM by 29.6% during the 4th quarter. Rheos Capital Works Inc. now owns 244,900 shares of the company’s stock worth $30,211,000 after acquiring an additional 56,000 shares during the last quarter. Finally, Mark Asset Management LP grew its position in ARM by 14.2% in the second quarter. Mark Asset Management LP now owns 238,589 shares of the company’s stock worth $39,038,000 after acquiring an additional 29,686 shares in the last quarter. 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.