ARM (NASDAQ:ARM) Trading 2.7% Higher – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price shot up 2.7% on Tuesday . The stock traded as high as $214.39 and last traded at $208.7170. 7,226,140 shares were traded during mid-day trading, a decline of 1% from the average session volume of 7,285,562 shares. The stock had previously closed at $203.26.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ARM. Susquehanna boosted their price objective on ARM from $170.00 to $210.00 and gave the company a “positive” rating in a report on Thursday, April 16th. HSBC raised ARM from a “reduce” rating to a “buy” rating and boosted their price objective for the company from $90.00 to $205.00 in a report on Friday, March 20th. Wells Fargo & Company boosted their price objective on ARM from $175.00 to $220.00 and gave the company an “overweight” rating in a report on Wednesday, April 29th. Barclays reissued an “overweight” rating and issued a $165.00 price objective on shares of ARM in a report on Thursday, March 26th. Finally, Raymond James Financial raised ARM from a “market perform” rating to an “outperform” rating and set a $166.00 target price for the company in a report on Wednesday, March 25th. Eighteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $176.71.

ARM Price Performance

The company has a market capitalization of $220.51 billion, a P/E ratio of 278.29, a price-to-earnings-growth ratio of 9.52 and a beta of 3.40. The company has a fifty day moving average price of $148.60 and a 200 day moving average price of $137.34.

ARM (NASDAQ:ARM) last posted its earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.23 billion. ARM had a return on equity of 14.01% and a net margin of 17.15%.The business’s revenue was up 26.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.39 earnings per share. On average, equities research analysts predict that ARM Holdings PLC Sponsored ADR will post 0.85 earnings per share for the current fiscal year.

Insider Activity at ARM

In other ARM news, CEO Rene A. Haas sold 23,867 shares of the company’s stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $161.17, for a total value of $3,846,644.39. Following the transaction, the chief executive officer owned 290,965 shares of the company’s stock, valued at approximately $46,894,829.05. This represents a 7.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Jason Child sold 21,280 shares of the business’s stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the sale, the chief financial officer directly owned 174,706 shares in the company, valued at approximately $25,921,129.22. This trade represents a 10.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 83,712 shares of company stock valued at $13,614,730.

Institutional Trading of ARM

Several large investors have recently added to or reduced their stakes in the company. Morgan Stanley raised its stake in ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock valued at $413,521,000 after purchasing an additional 45,314 shares during the period. Invesco Ltd. raised its stake in ARM by 36.9% during the 4th quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after purchasing an additional 654,727 shares during the period. Coatue Management LLC raised its stake in ARM by 1.8% during the 4th quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock valued at $251,413,000 after purchasing an additional 40,174 shares during the period. Wellington Management Group LLP raised its stake in ARM by 41.6% during the 4th quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock valued at $234,925,000 after purchasing an additional 631,576 shares during the period. Finally, Schroder Investment Management Group raised its stake in ARM by 11.0% during the 4th quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock valued at $206,739,000 after purchasing an additional 187,035 shares during the period. 7.53% of the stock is owned by institutional investors and hedge funds.

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.