ARM (NASDAQ:ARM) Trading 6.4% Higher – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price traded up 6.4% during trading on Wednesday . The company traded as high as $222.47 and last traded at $221.21. 8,426,560 shares changed hands during mid-day trading, an increase of 8% from the average session volume of 7,773,296 shares. The stock had previously closed at $207.92.

Key ARM News

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Arm’s software and hardware ecosystem continues to reinforce its competitive moat, supporting its leadership in smartphones and device computing. ARM’s Powerful Ecosystem Advantage Drives Market Leadership
• Positive Sentiment: Recent reporting says Arm and SoftBank tried to buy Cerebras, signaling continued ambition to expand Arm’s footprint in AI semiconductors. Arm’s Cerebras Bid Sheds Light On AI Chip Expansion Plans
• Positive Sentiment: UBS data showed ARM gaining server chip share at Intel’s expense, reinforcing the bull case for Arm’s long-term growth in data center and AI-related markets. New report shows AMD and ARM continue server share gains at Intel’s expense
• Neutral Sentiment: Analysts warned that the AI trade may be taking a breather, which has weighed on chip stocks broadly rather than on ARM-specific fundamentals. The AI Trade Takes a Breather to End the Week
• Neutral Sentiment: A major insider sale by Spencer Collins may be adding near-term pressure, though it does not change the company’s operating outlook by itself. ARM Insider Spencer Collins Sells 51,961 Shares
• Negative Sentiment: Another market note linked ARM to warnings about a potential chip-stock bubble, contributing to the day’s risk-off sentiment in semiconductor names. Intel Stock Is Falling as Analyst Issues Chip-Stock Bubble Warning

Analyst Ratings Changes

ARM has been the subject of several research analyst reports. Guggenheim boosted their price objective on shares of ARM from $240.00 to $255.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. HSBC upgraded shares of ARM from a “reduce” rating to a “buy” rating and boosted their price objective for the stock from $90.00 to $205.00 in a research report on Friday, March 20th. Rosenblatt Securities boosted their price objective on shares of ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Evercore dropped their price objective on shares of ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a research report on Thursday, February 5th. Finally, Susquehanna boosted their price objective on shares of ARM from $170.00 to $210.00 and gave the stock a “positive” rating in a research report on Thursday, April 16th. Nineteen analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, ARM presently has an average rating of “Moderate Buy” and an average target price of $199.61.

ARM Stock Performance

The company has a market cap of $220.98 billion, a P/E ratio of 249.00, a PEG ratio of 7.63 and a beta of 3.40. The firm’s 50-day simple moving average is $163.22 and its 200 day simple moving average is $140.10.

ARM (NASDAQ:ARM) last announced its earnings results 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 net margin of 18.37% and a return on equity of 12.43%. As a group, research analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.18 earnings per share for the current year.

Insider Transactions at ARM

In other news, CFO Jason Child sold 21,280 shares of the stock in a transaction dated 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 completion of the transaction, the chief financial officer directly owned 174,706 shares in the company, valued at $25,921,129.22. This represents a 10.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Spencer Collins sold 51,961 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.73, for a total transaction of $11,001,702.53. Following the transaction, the insider owned 51,125 shares of the company’s stock, valued at approximately $10,824,696.25. This represents a 50.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 135,673 shares of company stock worth $24,616,433 in the last three months.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Pacific Heights Asset Management LLC grew its position in shares of ARM by 32.1% during the 3rd quarter. Pacific Heights Asset Management LLC now owns 185,000 shares of the company’s stock worth $26,176,000 after purchasing an additional 45,000 shares in the last quarter. Paragon Capital Management Inc. acquired a new stake in shares of ARM during the 4th quarter worth approximately $826,000. Lansdowne Partners UK LLP acquired a new stake in ARM in the third quarter valued at approximately $8,486,000. Hyperion Asset Management Ltd acquired a new stake in ARM in the third quarter valued at approximately $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in ARM by 34.7% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after buying an additional 6,232 shares in the last quarter. 7.53% of the stock is owned by institutional investors.

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.