ARM (NASDAQ:ARM) Trading Up 2.5% – Here’s Why

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) shares were up 2.5% during mid-day trading on Thursday . The company traded as high as $290.21 and last traded at $278.65. Approximately 4,783,597 shares were traded during mid-day trading, a decline of 43% from the average daily volume of 8,373,857 shares. The stock had previously closed at $271.87.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ARM. KeyCorp lifted their price target on ARM from $300.00 to $430.00 and gave the company an “overweight” rating in a report on Tuesday, July 14th. Bank of America restated a “neutral” rating on shares of ARM in a research report on Thursday, July 30th. New Street Research raised ARM from a “neutral” rating to a “buy” rating and set a $260.00 target price on the stock in a research note on Thursday, July 30th. Guggenheim reissued a “buy” rating and issued a $255.00 price target on shares of ARM in a research report on Thursday, July 30th. Finally, Needham & Company LLC restated a “buy” rating and set a $255.00 price target on shares of ARM in a report on Thursday, July 30th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, ARM currently has a consensus rating of “Moderate Buy” and a consensus price target of $285.33.

ARM Stock Performance

The firm has a market cap of $297.62 billion, a P/E ratio of 287.27, a PEG ratio of 7.97 and a beta of 3.90. The company has a 50 day moving average of $315.23 and a 200 day moving average of $222.79.

ARM (NASDAQ:ARM) last posted its earnings results on Thursday, July 30th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.40 by $0.05. ARM had a net margin of 20.25% and a return on equity of 12.24%. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period in the previous year, the firm posted $0.35 earnings per share. The company’s revenue for the quarter was up 22.4% compared to the same quarter last year. As a group, analysts expect that ARM Holdings PLC Sponsored ADR will post 1.15 EPS for the current fiscal year.

Insider Buying and Selling at ARM

In other ARM news, CAO Laura Kathleen Bartels sold 11,306 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $392.70, for a total transaction of $4,439,866.20. Following the transaction, the chief accounting officer directly owned 12,135 shares in the company, valued at $4,765,414.50. This trade represents a 48.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider William Abbey sold 6,566 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $402.72, for a total value of $2,644,259.52. Following the completion of the sale, the insider directly owned 20,563 shares of the company’s stock, valued at $8,281,131.36. This represents a 24.20% decrease in their position. 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 in the last 90 days.

Institutional Investors Weigh In On ARM

Several institutional investors and hedge funds have recently added to or reduced their stakes in ARM. Amundi grew its holdings in ARM by 24.8% during the first quarter. Amundi now owns 11,804 shares of the company’s stock valued at $1,153,000 after purchasing an additional 2,345 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of ARM by 28.8% during the 1st quarter. Empowered Funds LLC now owns 4,887 shares of the company’s stock worth $522,000 after buying an additional 1,094 shares during the period. Schnieders Capital Management LLC. grew its stake in ARM by 9.0% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,430 shares of the company’s stock valued at $393,000 after buying an additional 200 shares during the last quarter. Bank of Nova Scotia acquired a new position in ARM in the 2nd quarter valued at $556,000. Finally, State Street Corp raised its holdings in ARM by 14.7% in the 2nd quarter. State Street Corp now owns 441,445 shares of the company’s stock worth $71,399,000 after acquiring an additional 56,656 shares during the period. 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.