Arm Holdings plc. ADR (NASDAQ: ARM)’s stock price has plunge by -5.59relation to previous closing price of 136.35. Nevertheless, the company has seen a -12.71% plunge in its stock price over the last five trading sessions. fool.com reported 2024-11-17 that The sellers have not only overshot their targets but have done so at the worst possible time.
Is It Worth Investing in Arm Holdings plc. ADR (NASDAQ: ARM) Right Now?
Arm Holdings plc. ADR (NASDAQ: ARM) has a price-to-earnings ratio of 213.13x that is above its average ratio. Additionally, the 36-month beta value for ARM is 5.11. There are mixed opinions on the stock, with 14 analysts rating it as a “buy,” 7 rating it as “overweight,” 12 rating it as “hold,” and 3 rating it as “sell.”
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The public float for ARM is 1.05B and currently, short sellers hold a 1.38% ratio of that float. The average trading volume of ARM on November 18, 2024 was 6.12M shares.
ARM’s Market Performance
The stock of Arm Holdings plc. ADR (ARM) has seen a -12.71% decrease in the past week, with a -16.73% drop in the past month, and a -2.71% fall in the past quarter. The volatility ratio for the week is 4.32%, and the volatility levels for the past 30 days are at 4.25% for ARM. The simple moving average for the past 20 days is -10.59% for ARM’s stock, with a -3.76% simple moving average for the past 200 days.
Analysts’ Opinion of ARM
Many brokerage firms have already submitted their reports for ARM stocks, with TD Cowen repeating the rating for ARM by listing it as a “Buy.” The predicted price for ARM in the upcoming period, according to TD Cowen is $165 based on the research report published on November 07, 2024 of the current year 2024.
Bernstein, on the other hand, stated in their research note that they expect to see ARM reach a price target of $100. The rating they have provided for ARM stocks is “Underperform” according to the report published on October 31st, 2024.
ARM Trading at -10.36% from the 50-Day Moving Average
After a stumble in the market that brought ARM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -31.80% of loss for the given period.
Volatility was left at 4.25%, however, over the last 30 days, the volatility rate increased by 4.32%, as shares sank -15.88% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +9.75% upper at present.
During the last 5 trading sessions, ARM fell by -12.71%, which changed the moving average for the period of 200-days by +82.54% in comparison to the 20-day moving average, which settled at $143.98. In addition, Arm Holdings plc. ADR saw 71.31% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ARM starting from Child Jason, who proposed sale 20,160 shares at the price of $148.50 back on Nov 08 ’24. After this action, Child Jason now owns shares of Arm Holdings plc. ADR, valued at $2,993,760 using the latest closing price.
Collins Spencer, the Officer of Arm Holdings plc. ADR, proposed sale 51,960 shares at $143.00 during a trade that took place back on Sep 16 ’24, which means that Collins Spencer is holding shares at $7,430,280 based on the most recent closing price.
Stock Fundamentals for ARM
Current profitability levels for the company are sitting at:
- 0.11 for the present operating margin
- 0.94 for the gross margin
The net margin for Arm Holdings plc. ADR stands at 0.18. The total capital return value is set at 0.06. Equity return is now at value 11.89, with 8.61 for asset returns.
Currently, EBITDA for the company is 374.0 million with net debt to EBITDA at -2.13. When we switch over and look at the enterprise to sales, we see a ratio of 37.92. The receivables turnover for the company is 2.42for trailing twelve months and the total asset turnover is 0.44. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.52.
Conclusion
In conclusion, Arm Holdings plc. ADR (ARM) has seen mixed performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
