ARM (NASDAQ:ARM) Downgraded by HSBC to “Hold”

HSBC cut shares of ARM (NASDAQ:ARM) from a buy rating to a hold rating in a research report sent to investors on Tuesday, Marketbeat Ratings reports. HSBC currently has $315.00 target price on the stock, up from their prior target price of $255.00.

Several other research analysts have also issued reports on the company. Mizuho increased their price objective on ARM from $425.00 to $500.00 and gave the stock an “outperform” rating in a research note on Monday, June 8th. Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research note on Monday, April 20th. UBS Group upped their target price on shares of ARM from $260.00 to $470.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Susquehanna increased their target price on shares of ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research report on Thursday, April 16th. Finally, Sanford C. Bernstein set a $500.00 price target on shares of ARM in a report on Wednesday, June 17th. Eighteen research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, ARM currently has a consensus rating of “Moderate Buy” and a consensus price target of $295.25.

ARM Stock Performance

NASDAQ:ARM opened at $281.17 on Tuesday. The company has a 50-day moving average of $321.30 and a 200-day moving average of $199.88. ARM has a 52 week low of $100.02 and a 52 week high of $452.70. The company has a market capitalization of $300.31 billion, a price-to-earnings ratio of 334.73, a PEG ratio of 10.86 and a beta of 3.76.

ARM (NASDAQ:ARM) last posted its quarterly earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a net margin of 18.37% and a return on equity of 12.43%. The firm had revenue of $1.49 billion during the quarter. Sell-side analysts forecast that ARM will post 1.12 EPS for the current year.

Insider Buying and Selling at ARM

In other ARM news, CAO Laura Kathleen Bartels sold 11,306 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $392.70, for a total value of $4,439,866.20. Following the completion of the transaction, the chief accounting officer directly owned 12,135 shares of the company’s stock, valued at approximately $4,765,414.50. The trade was a 48.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the completion of the transaction, the insider directly owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 238,906 shares of company stock worth $56,245,828 over the last quarter.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. GoalFusion Wealth Management LLC bought a new stake in shares of ARM during the second quarter worth $321,000. Redhawk Wealth Advisors Inc. acquired a new position in ARM during the 2nd quarter valued at about $375,000. Wealthcare Advisory Partners LLC bought a new position in shares of ARM in the 2nd quarter valued at about $326,000. First Bank & Trust bought a new position in shares of ARM in the 2nd quarter valued at about $274,000. Finally, Vertrix Wealth Management LLC acquired a new stake in shares of ARM during the 2nd quarter worth approximately $292,000. 7.53% of the stock is currently owned by institutional investors.

ARM Company Profile

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.