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

Several research analysts have issued reports on ARM shares. TD Cowen upgraded ARM to a “strong-buy” rating in a research note on Monday, September 16th. Needham & Company LLC reiterated a “hold” rating on shares of ARM in a research note on Thursday, August 1st. HSBC lowered ARM from a “hold” rating to a “reduce” rating in a research note on Monday, July 29th. Hsbc Global Res upgraded ARM to a “moderate sell” rating in a research note on Monday, July 29th. Finally, Daiwa America upgraded ARM from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 8th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $138.57.

ARM Stock Performance

The business has a fifty day simple moving average of $140.56 and a 200-day simple moving average of $136.41. The firm has a market cap of $148.16 billion and a price-to-earnings ratio of 367.10.

ARM (NASDAQ:ARM) last announced its quarterly earnings results on Wednesday, July 31st. The company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.05. ARM had a return on equity of 18.97% and a net margin of 12.12%. The business had revenue of $939.00 million for the quarter, compared to analyst estimates of $905.53 million. During the same quarter in the prior year, the company earned $0.24 earnings per share. The company’s quarterly revenue was up 39.1% on a year-over-year basis. On average, equities analysts anticipate that Arm Holdings plc will post 0.86 earnings per share for the current year.

Hedge Funds Weigh In On ARM

Hedge funds have recently made changes to their positions in the stock. United Advisor Group LLC bought a new stake in shares of ARM in the 3rd quarter valued at about $545,000. Ground Swell Capital LLC purchased a new position in shares of ARM during the 3rd quarter worth approximately $376,000. Robeco Institutional Asset Management B.V. boosted its position in shares of ARM by 27.6% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 14,559 shares of the company’s stock worth $2,082,000 after purchasing an additional 3,145 shares in the last quarter. Van ECK Associates Corp bought a new stake in shares of ARM in the 3rd quarter worth approximately $387,000. Finally, Farther Finance Advisors LLC lifted its position in ARM by 45.8% in the 3rd quarter. Farther Finance Advisors LLC now owns 417 shares of the company’s stock valued at $60,000 after acquiring an additional 131 shares in the last quarter. 7.53% of the stock is currently owned by hedge funds and other institutional investors.

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.