ARM (NASDAQ:ARM) Stock Price Up 4.9% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price shot up 4.9% on Thursday . The stock traded as high as $452.70 and last traded at $439.46. Approximately 34,099,578 shares changed hands during mid-day trading, an increase of 280% from the average session volume of 8,965,751 shares. The stock had previously closed at $418.88.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Raymond James Financial restated an “outperform” rating on shares of ARM in a report on Thursday, May 7th. Rosenblatt Securities increased their price objective on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Bank of America lifted their price objective on ARM from $245.00 to $335.00 and gave the company a “neutral” rating in a research report on Thursday, June 11th. Jefferies Financial Group set a $290.00 target price on ARM in a research note on Thursday, May 21st. Finally, The Goldman Sachs Group upped their target price on ARM from $125.00 to $150.00 and gave the stock a “sell” rating in a research report on Thursday, May 7th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, ARM has a consensus rating of “Moderate Buy” and an average target price of $253.38.

ARM Stock Up 4.9%

The company’s 50-day simple moving average is $259.44 and its 200 day simple moving average is $171.21. The company has a market capitalization of $469.38 billion, a P/E ratio of 523.17, a P/E/G ratio of 14.39 and a beta of 3.78.

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

Insider Activity at ARM

In other ARM news, insider Spencer Collins sold 51,961 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the completion of the sale, the insider owned 51,125 shares of the company’s stock, valued at $10,824,696.25. The trade was a 50.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Richard Roy Grisenthwaite sold 24,339 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $209.15, for a total value of $5,090,501.85. Following the completion of the sale, the insider directly owned 5,543 shares of the company’s stock, valued at $1,159,318.45. This represents a 81.45% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 301,338 shares of company stock valued at $66,030,158.

Institutional Investors Weigh In On ARM

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Syntax Research Inc. bought a new position in shares of ARM in the first quarter valued at approximately $30,000. Evelyn Partners Investment Management Services Ltd bought a new stake in shares of ARM during the 1st quarter worth $30,000. Mcguire Capital Advisors Inc. acquired a new position in ARM in the 4th quarter valued at $30,000. Navalign LLC acquired a new position in ARM in the 4th quarter valued at $33,000. Finally, FWL Investment Management LLC bought a new position in ARM in the 2nd quarter worth $34,000. 7.53% of the stock is currently 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.