ARM (NASDAQ:ARM) Stock Price Down 4.4% – Here’s Why

Arm Holdings plc (NASDAQ:ARM) was down 4.4% on Wednesday . The company traded as low as $130.23 and last traded at $130.71. Approximately 1,447,244 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 10,556,180 shares. The stock had previously closed at $136.72.

Analyst Upgrades and Downgrades

ARM has been the subject of several analyst reports. Needham & Company LLC reissued a “hold” rating on shares of ARM in a report on Thursday, November 7th. Evercore ISI upped their price objective on shares of ARM from $173.00 to $176.00 and gave the company an “outperform” rating in a research note on Thursday, November 7th. Raymond James initiated coverage on shares of ARM in a research report on Friday, September 13th. They set an “outperform” rating and a $160.00 price target for the company. William Blair initiated coverage on ARM in a report on Wednesday, September 18th. They issued an “outperform” rating on the stock. Finally, Citigroup increased their target price on ARM from $150.00 to $170.00 and gave the company a “buy” rating in a report on Thursday, August 1st. 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. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $150.32.

ARM Stock Performance

The stock has a market cap of $139.75 billion, a P/E ratio of 216.87, a price-to-earnings-growth ratio of 6.97 and a beta of 5.40. The firm has a 50-day moving average price of $143.32 and a 200-day moving average price of $141.32.

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

Hedge Funds Weigh In On ARM

Several large investors have recently made changes to their positions in ARM. KP Management LLC grew its stake in shares of ARM by 28.6% during the 3rd quarter. KP Management LLC now owns 45,000 shares of the company’s stock valued at $6,435,000 after purchasing an additional 10,000 shares during the period. Willner & Heller LLC raised its position in ARM by 193.7% in the third quarter. Willner & Heller LLC now owns 6,799 shares of the company’s stock worth $972,000 after acquiring an additional 4,484 shares during the period. Lazard Asset Management LLC boosted its stake in shares of ARM by 393.0% during the 1st quarter. Lazard Asset Management LLC now owns 25,236 shares of the company’s stock worth $3,154,000 after acquiring an additional 20,117 shares during the last quarter. United Advisor Group LLC bought a new stake in shares of ARM during the 3rd quarter valued at $545,000. Finally, Mizuho Securities Co. Ltd. increased its stake in shares of ARM by 156.3% in the 2nd quarter. Mizuho Securities Co. Ltd. now owns 18,400 shares of the company’s stock worth $3,011,000 after purchasing an additional 11,220 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

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.