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

Arm Holdings plc (NASDAQ:ARM) shares gapped down prior to trading on Thursday . The stock had previously closed at $173.26, but opened at $162.00. ARM shares last traded at $165.79, with a volume of 2,917,892 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Sanford C. Bernstein cut shares of ARM from a “market perform” rating to an “underperform” rating and set a $100.00 price objective for the company. in a research report on Thursday, October 31st. Wells Fargo & Company boosted their price target on ARM from $162.00 to $185.00 and gave the company an “overweight” rating in a research note on Thursday. The Goldman Sachs Group lifted their target price on ARM from $159.00 to $174.00 and gave the stock a “buy” rating in a report on Thursday. Susquehanna raised their price target on shares of ARM from $118.00 to $140.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 22nd. Finally, Rosenblatt Securities raised their target price on shares of ARM from $180.00 to $225.00 and gave the stock a “buy” rating in a report on Thursday. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, nineteen have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $162.17.

ARM Trading Down 3.8 %

The firm has a 50-day moving average price of $143.45 and a 200-day moving average price of $139.80. The stock has a market capitalization of $174.67 billion, a PE ratio of 279.11, a price-to-earnings-growth ratio of 7.46 and a beta of 4.56.

ARM (NASDAQ:ARM) last posted 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. The business had revenue of $844.00 million for the quarter, compared to the consensus estimate of $810.03 million. ARM had a return on equity of 13.69% and a net margin of 18.13%. ARM’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.36 earnings per share. Sell-side analysts expect that Arm Holdings plc will post 0.84 earnings per share for the current fiscal year.

Institutional Investors Weigh In On ARM

Several institutional investors have recently added to or reduced their stakes in ARM. Sanctuary Advisors LLC purchased a new stake in ARM in the 2nd quarter worth approximately $737,000. Park Avenue Securities LLC grew its stake in shares of ARM by 8.6% in the third quarter. Park Avenue Securities LLC now owns 2,780 shares of the company’s stock worth $398,000 after purchasing an additional 221 shares during the last quarter. Alpha Cubed Investments LLC lifted its position in shares of ARM by 5.0% in the 3rd quarter. Alpha Cubed Investments LLC now owns 2,628 shares of the company’s stock worth $376,000 after purchasing an additional 124 shares during the period. Brookstone Capital Management raised its stake in ARM by 12.4% in the third quarter. Brookstone Capital Management now owns 1,411 shares of the company’s stock worth $202,000 after buying an additional 156 shares in the last quarter. Finally, Sovereign Financial Group Inc. grew its holdings in shares of ARM by 19.1% during the 3rd quarter. Sovereign Financial Group Inc. now owns 4,752 shares of the company’s stock worth $680,000 after acquiring an additional 763 shares during the period. 7.53% of the stock is 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.