ARM (NASDAQ:ARM) Trading Up 5.7% – What’s Next?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price was up 5.7% during mid-day trading on Wednesday . The stock traded as high as $444.80 and last traded at $418.88. Approximately 11,508,664 shares changed hands during trading, an increase of 31% from the average daily volume of 8,813,980 shares. The stock had previously closed at $396.34.

Analysts Set New Price Targets

Several research analysts have issued reports on ARM shares. Sanford C. Bernstein set a $500.00 target price on shares of ARM in a report on Wednesday. HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and increased their price target for the company from $90.00 to $205.00 in a research report on Friday, March 20th. Guggenheim increased their price target on shares of ARM from $240.00 to $255.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Bank of America increased their price target on shares of ARM from $245.00 to $335.00 and gave the company a “neutral” rating in a research report on Thursday, June 11th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of ARM in a research report on Thursday, May 7th. Twenty equities research 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 MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $253.38.

ARM Trading Up 5.7%

The stock has a market capitalization of $447.40 billion, a PE ratio of 498.67, a price-to-earnings-growth ratio of 14.98 and a beta of 3.78. The company’s 50-day moving average is $254.04 and its 200 day moving average is $169.20.

ARM (NASDAQ:ARM) last announced its quarterly earnings data on Wednesday, April 1st. The company reported $0.60 EPS 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%. Sell-side analysts forecast that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $209.15, for a total value of $5,090,501.85. Following the transaction, the insider owned 5,543 shares in the company, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Spencer Collins sold 51,961 shares of the stock in a transaction that occurred on 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 completion of the transaction, the insider owned 51,125 shares in the company, valued at approximately $10,824,696.25. This trade represents a 50.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 301,338 shares of company stock worth $66,030,158 in the last quarter.

Institutional Investors Weigh In On ARM

Hedge funds and other institutional investors have recently made changes to their positions in the company. Rathbones Group PLC grew its stake in shares of ARM by 4,638.8% during the 4th quarter. Rathbones Group PLC now owns 500,043 shares of the company’s stock worth $54,660,000 after purchasing an additional 489,491 shares during the period. Paragon Capital Management Inc. acquired a new stake in ARM in the 4th quarter valued at $826,000. Lansdowne Partners UK LLP acquired a new stake in ARM in the 3rd quarter valued at $8,486,000. Hyperion Asset Management Ltd acquired a new stake in ARM in the 3rd quarter valued at $202,980,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in ARM by 34.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 24,188 shares of the company’s stock valued at $2,644,000 after acquiring an additional 6,232 shares during the period. 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.