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

Shares of Arm Holdings plc (NASDAQ:ARM) gapped down prior to trading on Thursday . The stock had previously closed at $154.40, but opened at $145.26. ARM shares last traded at $145.25, with a volume of 1,471,857 shares.

Wall Street Analysts Forecast Growth

ARM has been the topic of several analyst reports. Loop Capital lifted their target price on ARM from $120.00 to $130.00 and gave the company a “buy” rating in a research report on Tuesday, August 6th. William Blair started coverage on ARM in a research note on Wednesday, September 18th. They set an “outperform” rating on the stock. HSBC lowered ARM from a “hold” rating to a “reduce” rating in a research report on Monday, July 29th. TD Cowen upgraded ARM to a “strong-buy” rating in a research report on Monday, September 16th. Finally, Citigroup boosted their price target on ARM from $150.00 to $170.00 and gave the company a “buy” rating in a report on Thursday, August 1st. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $138.57.

ARM Price Performance

The firm’s 50-day moving average is $140.56 and its 200 day moving average is $136.41. The stock has a market cap of $148.16 billion and a price-to-earnings ratio of 367.10.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, July 31st. The company reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05. ARM had a net margin of 12.12% and a return on equity of 18.97%. The firm had revenue of $939.00 million for the quarter, compared to the consensus estimate of $905.53 million. During the same period in the prior year, the firm posted $0.24 EPS. The firm’s revenue was up 39.1% compared to the same quarter last year. On average, sell-side analysts forecast that Arm Holdings plc will post 0.86 EPS for the current year.

Hedge Funds Weigh In On ARM

Large investors have recently bought and sold shares of the stock. Mark Sheptoff Financial Planning LLC purchased a new position in shares of ARM in the first quarter worth approximately $25,000. ORG Partners LLC acquired a new stake in ARM in the third quarter valued at approximately $29,000. Transcendent Capital Group LLC acquired a new stake in ARM in the second quarter valued at approximately $33,000. Gilliland Jeter Wealth Management LLC lifted its stake in shares of ARM by 83.0% in the third quarter. Gilliland Jeter Wealth Management LLC now owns 258 shares of the company’s stock worth $37,000 after buying an additional 117 shares during the last quarter. Finally, RiverPark Advisors LLC lifted its stake in shares of ARM by 45.3% in the second quarter. RiverPark Advisors LLC now owns 247 shares of the company’s stock worth $40,000 after buying an additional 77 shares during the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

ARM Company Profile

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.