ARM (NASDAQ:ARM) Trading Up 5% – What’s Next?

Shares of ARM Holdings PLC Sponsored ADR (NASDAQ:ARM) were up 5% on Monday . The company traded as high as $175.32 and last traded at $175.10. Approximately 8,449,018 shares traded hands during mid-day trading, an increase of 25% from the average daily volume of 6,785,253 shares. The stock had previously closed at $166.73.

Wall Street Analysts Forecast Growth

ARM has been the subject of a number of research analyst reports. Evercore lowered their price target on ARM from $215.00 to $170.00 and set an “outperform” rating for the company in a report on Thursday, February 5th. Royal Bank Of Canada lifted their target price on ARM from $130.00 to $175.00 and gave the company an “outperform” rating in a research report on Wednesday, March 25th. Rosenblatt Securities reissued a “buy” rating and set a $175.00 target price on shares of ARM in a research note on Wednesday, March 25th. KeyCorp reissued an “overweight” rating on shares of ARM in a report on Thursday, February 5th. Finally, Bank of America restated a “neutral” rating and issued a $120.00 price target on shares of ARM in a research note on Tuesday, January 13th. Eighteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, ARM presently has a consensus rating of “Moderate Buy” and an average target price of $174.83.

ARM Stock Performance

The company has a market cap of $207.68 billion, a price-to-earnings ratio of 262.09, a P/E/G ratio of 7.89 and a beta of 3.33. The company has a fifty day moving average of $136.93 and a two-hundred day moving average of $135.13.

ARM (NASDAQ:ARM) last issued its earnings results on Thursday, February 5th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. ARM had a return on equity of 14.01% and a net margin of 17.15%.The business had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter in the prior year, the firm earned $0.39 EPS. The business’s revenue for the quarter was up 26.3% compared to the same quarter last year. Equities analysts expect that ARM Holdings PLC Sponsored ADR will post 0.85 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Rene A. Haas sold 23,867 shares of ARM stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total transaction of $3,846,644.39. Following the sale, the chief executive officer directly owned 290,965 shares in the company, valued at $46,894,829.05. This trade represents a 7.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Jason Child sold 21,280 shares of the business’s stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total transaction of $3,157,313.60. Following the sale, the chief financial officer directly owned 174,706 shares in the company, valued at $25,921,129.22. The trade was a 10.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 62,432 shares of company stock valued at $9,784,330.

Institutional Trading of ARM

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Morgan Stanley lifted its holdings in ARM by 1.2% during the 4th quarter. Morgan Stanley now owns 3,783,006 shares of the company’s stock worth $413,521,000 after buying an additional 45,314 shares during the period. Invesco Ltd. increased its stake in shares of ARM by 36.9% in the fourth quarter. Invesco Ltd. now owns 2,426,850 shares of the company’s stock valued at $265,279,000 after buying an additional 654,727 shares during the period. Coatue Management LLC raised its position in shares of ARM by 1.8% during the fourth quarter. Coatue Management LLC now owns 2,300,000 shares of the company’s stock worth $251,413,000 after acquiring an additional 40,174 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of ARM by 41.6% in the fourth quarter. Wellington Management Group LLP now owns 2,149,159 shares of the company’s stock worth $234,925,000 after acquiring an additional 631,576 shares during the period. Finally, Schroder Investment Management Group lifted its stake in shares of ARM by 11.0% in the fourth quarter. Schroder Investment Management Group now owns 1,891,310 shares of the company’s stock worth $206,739,000 after acquiring an additional 187,035 shares during the period. 7.53% of the stock is currently owned by institutional investors and hedge funds.

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.