ARM (NASDAQ:ARM) Stock Price Down 5.4% – Should You Sell?

Arm Holdings plc (NASDAQ:ARM)’s stock price was down 5.4% on Friday . The company traded as low as $128.45 and last traded at $128.95. Approximately 2,756,694 shares changed hands during trading, a decline of 74% from the average daily volume of 10,782,024 shares. The stock had previously closed at $136.35.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. William Blair initiated coverage on shares of ARM in a research report on Wednesday, September 18th. They set an “outperform” rating for the company. Citigroup increased their target price on shares of ARM from $150.00 to $170.00 and gave the stock a “buy” rating in a report on Thursday, August 1st. TD Cowen boosted their price target on ARM from $150.00 to $165.00 and gave the company a “buy” rating in a report on Thursday, November 7th. The Goldman Sachs Group increased their price objective on ARM from $144.00 to $159.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $180.00 target price on shares of ARM in a research note on Thursday, August 1st. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, ARM currently has an average rating of “Moderate Buy” and an average target price of $147.95.

ARM Price Performance

The firm has a market cap of $134.89 billion, a PE ratio of 214.55, a PEG ratio of 6.75 and a beta of 5.40. The stock’s fifty day simple moving average is $143.60 and its 200-day simple moving average is $139.55.

ARM (NASDAQ:ARM) last issued its quarterly earnings results on Wednesday, November 6th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.04. The company had revenue of $844.00 million for the quarter, compared to the consensus estimate of $810.03 million. ARM had a net margin of 18.13% and a return on equity of 13.69%. ARM’s quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.36 EPS. Analysts expect that Arm Holdings plc will post 0.79 earnings per share for the current year.

Hedge Funds Weigh In On ARM

A number of large investors have recently bought and sold shares of the business. International Assets Investment Management LLC raised its holdings in shares of ARM by 14,351.1% during the third quarter. International Assets Investment Management LLC now owns 812,297 shares of the company’s stock valued at $1,161,670,000 after acquiring an additional 806,676 shares during the last quarter. Sei Investments Co. lifted its holdings in ARM by 551.6% in the 2nd quarter. Sei Investments Co. now owns 579,330 shares of the company’s stock valued at $94,790,000 after purchasing an additional 490,415 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in ARM by 186.8% in 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 purchasing an additional 233,909 shares in the last quarter. Marsico Capital Management LLC purchased a new stake in shares of ARM during the second quarter worth $33,207,000. Finally, ProShare Advisors LLC acquired a new stake in shares of ARM in the second quarter valued at about $16,611,000. Institutional investors and hedge funds 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.