ARM (NASDAQ:ARM) Stock Price Up 15.7% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were up 15.7% during mid-day trading on Monday . The company traded as high as $421.69 and last traded at $408.85. Approximately 20,412,111 shares changed hands during trading, an increase of 143% from the average daily volume of 8,410,192 shares. The stock had previously closed at $353.29.

Key Headlines Impacting ARM

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Nvidia’s RTX Spark launch reportedly uses an Arm-based CPU design, reinforcing Arm’s role in AI PCs and boosting expectations for future licensing and royalty growth. Arm Stock Jumps As Chip Designer Joins Nvidia PC Effort
• Positive Sentiment: Reports that Arm’s AI chip target could arrive earlier than expected suggest stronger demand for Arm’s own-chip ambitions as AI spending accelerates. Arm’s $15 Billion AI Chip Target May Arrive Early
• Positive Sentiment: Arm said ByteDance and Oracle are users of its AI data-center CPUs, adding evidence that major customers are adopting its products in fast-growing AI infrastructure markets. Arm names ByteDance and Oracle as users of its AI data centre CPUs
• Positive Sentiment: Coverage around Microsoft’s Surface RTX Spark dev box and Nvidia’s broader PC push further validates Arm’s place in the new Windows-on-Arm ecosystem. Microsoft’s Surface RTX Spark Dev Box fills Qualcomm’s Windows Arm void
• Neutral Sentiment: Insider William Abbey sold 4,200 shares, which may temper sentiment a bit, but the transaction looks small relative to the AI-driven momentum in the stock. ARM insider William Abbey sells 4,200 shares of stock
• Neutral Sentiment: Arm CEO Rene Haas said it would be difficult for the U.S. to ban AI CPU exports to China, which highlights geopolitical risk but does not appear to be the main driver today. Arm Holdings CEO says US would have difficulty banning AI CPU chip exports to China

Analysts Set New Price Targets

Several brokerages have weighed in on ARM. Susquehanna upped their target price on ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research report on Thursday, April 16th. TD Cowen boosted their price target on ARM from $165.00 to $265.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. The Goldman Sachs Group increased their price objective on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a report on Thursday, May 7th. Morgan Stanley reaffirmed an “equal weight” rating and set a $150.00 price objective (up from $135.00) on shares of ARM in a research report on Tuesday, April 7th. Finally, HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and lifted their target price for the company from $90.00 to $205.00 in a research note on Friday, March 20th. Twenty equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $226.92.

ARM Stock Down 1.5%

The company has a market cap of $425.47 billion, a price-to-earnings ratio of 479.42, a PEG ratio of 14.85 and a beta of 3.78. The business has a 50-day simple moving average of $204.85 and a two-hundred day simple moving average of $151.19.

ARM (NASDAQ:ARM) last issued its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The business had revenue of $1.49 billion for the quarter. As a group, equities analysts anticipate that ARM Holdings PLC Sponsored ADR will post 1.12 earnings per share for the current year.

Insider Activity at ARM

In related news, insider Spencer Collins sold 51,961 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the completion of the sale, the insider directly owned 51,125 shares of the company’s stock, valued at approximately $10,824,696.25. This represents a 50.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider William Abbey sold 10,887 shares of the company’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $224.14, for a total transaction of $2,440,212.18. Following the sale, the insider directly owned 43,353 shares of the company’s stock, valued at approximately $9,717,141.42. This represents a 20.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 283,466 shares of company stock valued at $58,946,033.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. GKV Capital Management Co. Inc. acquired a new stake in shares of ARM in the first quarter valued at about $106,000. CTC Alternative Strategies Ltd. acquired a new position in shares of ARM during the 1st quarter worth about $2,322,000. BankChampaign National Association bought a new stake in ARM during the 1st quarter valued at approximately $510,000. Groupe la Francaise grew its holdings in ARM by 62.9% in the 1st quarter. Groupe la Francaise now owns 41,953 shares of the company’s stock valued at $6,309,000 after buying an additional 16,201 shares during the last quarter. Finally, Liontrust Investment Partners LLP grew its holdings in ARM by 139.7% in the 1st quarter. Liontrust Investment Partners LLP now owns 347,339 shares of the company’s stock valued at $52,545,000 after buying an additional 202,410 shares during the last quarter. Institutional investors and hedge funds 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.