ARM (NASDAQ:ARM) Share Price Crosses Above Two Hundred Day Moving Average – Should You Sell?

Arm Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price passed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $226.25 and traded as high as $227.83. ARM shares last traded at $226.60, with a volume of 3,740,262 shares trading hands.

Key Stories Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s upcoming Q2 earnings report could provide a catalyst for a recovery if strong customer demand translates into better-than-expected revenue, licensing activity, or guidance. Why Arm’s Q2 Earnings Could Spur a Recovery in Its Stock Why Arm’s Q2 Earnings Could Spur a Recovery in Its Stock
• Positive Sentiment: Data-center demand is expected to continue offsetting weakness in Arm’s mobile business. Growth in cloud infrastructure and artificial-intelligence-related computing could support royalties and licensing revenue, offering a fundamental reason for investors to remain bullish. Arm Holdings: Data Centers Will Continue To Offset Weak Mobile, But Upside Only In My Bull Case
• Neutral Sentiment: A viral design on X featuring a giant arm pointing toward the platform’s composer is a user-interface promotion and does not appear related to Arm Holdings’ semiconductor-technology business or its financial outlook. Why Is a Giant Arm Appearing to Point X Users to Promote Whatever Tweets Are Called Now? Why is there a random arm taking over the X composer?
• Negative Sentiment: Analysts remain concerned that ARM’s valuation is too high relative to its near-term earnings growth. With a very elevated P/E ratio and a stock trading well below its 50-day moving average, the company may need a significant earnings or guidance beat to justify further upside. Arm: The Price Tag Remains Far Too Steep (Earnings Preview)

Analyst Upgrades and Downgrades

ARM has been the subject of several analyst reports. Susquehanna increased their price objective on ARM from $300.00 to $320.00 and gave the company a “positive” rating in a report on Tuesday, July 21st. Royal Bank Of Canada decreased their target price on ARM from $475.00 to $340.00 and set an “outperform” rating for the company in a research note on Thursday, July 30th. Wells Fargo & Company lowered their price target on ARM from $350.00 to $280.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. TD Cowen cut their price objective on shares of ARM from $475.00 to $350.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of ARM in a research report on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, ARM has an average rating of “Moderate Buy” and an average target price of $303.32.

ARM Stock Performance

The stock has a market capitalization of $244.34 billion, a price-to-earnings ratio of 235.85, a PEG ratio of 6.24 and a beta of 3.78. The business has a 50-day moving average of $259.62 and a 200-day moving average of $227.44.

ARM (NASDAQ:ARM) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.26 billion. ARM had a return on equity of 12.24% and a net margin of 20.25%. The firm’s revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 earnings per share. On average, research analysts predict that Arm Holdings PLC Sponsored ADR will post 1.15 earnings per share for the current fiscal year.

Insider Activity at ARM

In related news, CFO Jason Child sold 10,400 shares of the company’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $300.00, for a total value of $3,120,000.00. Following the completion of the sale, the chief financial officer owned 153,442 shares in the company, valued at $46,032,600. This represents a 6.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ARM. Bank Julius Baer & Co. Ltd Zurich boosted its holdings in shares of ARM by 1.4% during the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 79,931 shares of the company’s stock worth $23,161,000 after purchasing an additional 1,137 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in ARM by 2.6% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 86,297 shares of the company’s stock worth $24,997,000 after buying an additional 2,197 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new position in ARM during the third quarter worth about $179,998,000. ProShare Advisors LLC boosted its stake in ARM by 2.2% in the 3rd quarter. ProShare Advisors LLC now owns 421,817 shares of the company’s stock worth $122,184,000 after buying an additional 9,242 shares during the last quarter. Finally, Vise Technologies Inc. acquired a new stake in ARM in the 3rd quarter worth about $408,000. 7.53% of the stock is owned by hedge funds and other institutional investors.

ARM Company Profile

Arm Holdings plc (NASDAQ: ARM) is a semiconductor and software design company that develops central processing unit (CPU) architectures and related intellectual property. Rather than manufacturing chips itself, Arm licenses its designs and instruction-set architectures to semiconductor companies and technology manufacturers, which incorporate them into their own products.

The company’s offerings include CPU processor cores, graphics processing units through its Mali product family, system IP, development tools and software.