ARM (NASDAQ:ARM) Trading Up 1.1% – Here’s Why

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shot up 1.1% during trading on Wednesday . The stock traded as high as $280.16 and last traded at $271.87. Approximately 3,341,352 shares traded hands during trading, a decline of 60% from the average session volume of 8,395,000 shares. The stock had previously closed at $268.93.

Analyst Ratings Changes

Several research analysts recently weighed in on the company. HSBC lowered ARM from a “buy” rating to a “hold” rating and increased their price objective for the stock from $255.00 to $315.00 in a research report on Tuesday, July 14th. Wells Fargo & Company decreased their price target on ARM from $350.00 to $280.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of ARM in a report on Friday, July 17th. The Goldman Sachs Group boosted their price objective on shares of ARM from $125.00 to $150.00 and gave the company a “sell” rating in a report on Thursday, May 7th. Finally, Sanford C. Bernstein set a $500.00 target price on shares of ARM in a research report on Wednesday, June 17th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $285.33.

ARM Stock Performance

The company has a market cap of $290.38 billion, a PE ratio of 280.28, a PEG ratio of 7.94 and a beta of 3.90. The company’s 50-day simple moving average is $318.03 and its 200 day simple moving average is $221.71.

ARM (NASDAQ:ARM) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.05. The business 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 company’s revenue was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.35 earnings per share. Analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current year.

Insider Activity

In other news, insider William Abbey sold 10,887 shares of ARM stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $224.14, for a total value of $2,440,212.18. Following the completion of the transaction, the insider owned 43,353 shares in the company, valued at approximately $9,717,141.42. This trade represents a 20.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Spencer Collins sold 40,941 shares of ARM stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $215.00, for a total value of $8,802,315.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 164,088 shares of company stock worth $41,099,903 over the last three months.

Institutional Trading of ARM

Several hedge funds have recently added to or reduced their stakes in ARM. Syntax Research Inc. purchased a new stake in shares of ARM in the 1st quarter valued at approximately $30,000. Evelyn Partners Investment Management Services Ltd purchased a new stake in shares of ARM during the 1st quarter worth $30,000. Allied Private Wealth LLC purchased a new stake in shares of ARM during the 2nd quarter worth $71,000. FWL Investment Management LLC acquired a new position in shares of ARM during the second quarter worth $34,000. Finally, Cassaday & Co Wealth Management LLC acquired a new position in shares of ARM during the first quarter worth $40,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

About ARM

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.