ARM (NASDAQ:ARM) Shares Gap Down – What’s Next?

Arm Holdings plc (NASDAQ:ARM) shares gapped down before the market opened 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 brokerages have commented on ARM. Loop Capital upped their target price on shares of ARM from $130.00 to $180.00 and gave the stock a “buy” rating in a research note on Monday, November 11th. Sanford C. Bernstein cut ARM from a “market perform” rating to an “underperform” rating and set a $100.00 price objective on the stock. in a research note on Thursday, October 31st. Needham & Company LLC restated a “hold” rating on shares of ARM in a report on Thursday. JPMorgan Chase & Co. upped their target price on ARM from $160.00 to $175.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, Wells Fargo & Company raised their price target on ARM from $162.00 to $185.00 and gave the company an “overweight” rating in a research note on Thursday. Two analysts have rated the stock with a sell rating, six have given a hold rating, nineteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $162.17.

ARM Trading Down 3.0 %

The company has a market capitalization of $170.28 billion, a price-to-earnings ratio of 270.85, a P/E/G ratio of 7.46 and a beta of 4.56. The firm has a 50-day simple moving average of $144.69 and a two-hundred day simple moving average of $139.99.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Wednesday, November 6th. The company reported $0.30 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04. The company had revenue of $844.00 million during the quarter, compared to analysts’ expectations of $810.03 million. ARM had a net margin of 18.13% and a return on equity of 13.69%. The firm’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the prior year, the business posted $0.36 earnings per share. Equities research analysts anticipate that Arm Holdings plc will post 0.84 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Franklin Resources Inc. grew its holdings in shares of ARM by 21.7% during the third quarter. Franklin Resources Inc. now owns 1,281,484 shares of the company’s stock worth $183,265,000 after buying an additional 228,467 shares in the last quarter. International Assets Investment Management LLC boosted its position in ARM by 14,351.1% during the third quarter. International Assets Investment Management LLC now owns 812,297 shares of the company’s stock worth $1,161,670,000 after acquiring an additional 806,676 shares during the last quarter. Bank Julius Baer & Co. Ltd Zurich grew its stake in ARM by 4,506.5% during the 4th quarter. Bank Julius Baer & Co. Ltd Zurich now owns 808,953 shares of the company’s stock valued at $107,774,000 after acquiring an additional 791,392 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised 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 acquiring an additional 233,909 shares during the last quarter. Finally, Raymond James Financial Inc. purchased a new position in ARM in the 4th quarter worth approximately $32,655,000. 7.53% of the stock is owned by institutional investors and hedge funds.

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.