ARM (NASDAQ:ARM) Shares Up 2.8% – Time to Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shot up 2.8% during trading on Friday . The company traded as high as $315.00 and last traded at $306.51. 13,796,510 shares traded hands during trading, an increase of 69% from the average session volume of 8,168,831 shares. The stock had previously closed at $298.23.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Analysts said Nvidia’s bullish comments on Arm-based Vera CPUs support ARM’s growth narrative, with Jefferies reiterating a Buy rating and a $290 price target. Nvidia CPU comments read positively for this chip stock: analyst
• Positive Sentiment: Bernstein initiated coverage with an Outperform rating and a $300 target, highlighting Arm’s potential as AI and custom chip demand expands. Is Arm Holdings (ARM) the Best European Growth Stock to Buy?
• Positive Sentiment: Market commentary continues to frame ARM as a momentum name tied to the AI and CPU renaissance, with investors bidding the shares to fresh highs on expectations for strong profit growth. Arm Holdings (ARM) Hits All-Time High as Profits Seen Rocketing 5x
• Neutral Sentiment: Several insider sales were disclosed this week, including transactions by Charlotte Claire Eaton, CFO Jason Child, William Abbey, and Spencer Collins; most were pre-arranged or routine, but they can still raise valuation caution. SEC filing for insider sales
• Neutral Sentiment: Some recent market commentary says ARM remains a high-momentum stock and a proxy for the AI buildout, which supports the rally but also suggests expectations are elevated. Why Arm Holdings Stock Surged to an All-Time High Today

Analysts Set New Price Targets

A number of brokerages have commented on ARM. Royal Bank Of Canada increased their price target on shares of ARM from $175.00 to $260.00 and gave the company an “outperform” rating in a research report on Thursday, May 7th. Benchmark reiterated a “hold” rating on shares of ARM in a research report on Thursday, February 5th. Evercore reduced their price target on shares of ARM from $215.00 to $170.00 and set an “outperform” rating on the stock in a research report on Thursday, February 5th. Raymond James Financial reiterated an “outperform” rating on shares of ARM in a research report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Twenty analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $208.79.

ARM Price Performance

The stock has a market cap of $323.83 billion, a PE ratio of 364.89, a price-to-earnings-growth ratio of 11.13 and a beta of 3.40. The business has a 50 day moving average price of $179.05 and a two-hundred day moving average price of $143.68.

ARM (NASDAQ:ARM) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 earnings per share for the quarter. The firm had revenue of $1.49 billion during the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%. On average, sell-side analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Spencer Collins sold 40,941 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $215.00, for a total transaction of $8,802,315.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $209.15, for a total value of $5,090,501.85. Following the sale, the insider directly owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. This trade represents a 81.45% decrease in their position. 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. In the last 90 days, insiders have sold 276,966 shares of company stock valued at $56,798,645.

Institutional Trading of ARM

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARM. Syntax Research Inc. purchased a new stake in ARM in the first quarter worth $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in ARM in the first quarter worth $30,000. Mcguire Capital Advisors Inc. purchased a new stake in ARM in the fourth quarter worth $30,000. Navalign LLC purchased a new stake in ARM in the fourth quarter worth $33,000. Finally, FWL Investment Management LLC purchased a new stake in ARM in the second quarter worth $34,000. Hedge funds and other institutional investors own 7.53% of the company’s stock.

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.