ARM (NASDAQ:ARM) Shares Up 10.5% – Still a Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price shot up 10.5% during mid-day trading on Tuesday . The stock traded as high as $151.59 and last traded at $151.28. 10,108,256 shares traded hands during mid-day trading, an increase of 46% from the average session volume of 6,900,517 shares. The stock had previously closed at $136.96.

Analyst Ratings Changes

ARM has been the topic of a number of research analyst reports. KeyCorp reissued an “overweight” rating on shares of ARM in a report on Thursday, February 5th. Raymond James Financial upgraded shares of ARM from a “market perform” rating to an “outperform” rating and set a $166.00 target price for the company in a research report on Wednesday, March 25th. HSBC raised shares of ARM from a “reduce” rating to a “buy” rating and raised their target price for the company from $90.00 to $205.00 in a research note on Friday, March 20th. Guggenheim boosted their price target on shares of ARM from $201.00 to $240.00 and gave the stock a “buy” rating in a research report on Wednesday, March 25th. Finally, Jefferies Financial Group set a $170.00 price target on shares of ARM in a research note on Thursday, February 5th. Nineteen equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $168.17.

ARM Stock Performance

The stock’s fifty day simple moving average is $123.10 and its two-hundred day simple moving average is $134.04. The company has a market capitalization of $159.83 billion, a price-to-earnings ratio of 201.71, a P/E/G ratio of 9.10 and a beta of 4.10.

ARM (NASDAQ:ARM) last released its earnings results on Thursday, February 5th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.02. The business had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. ARM had a net margin of 17.15% and a return on equity of 14.01%. The business’s revenue for the quarter was up 26.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.39 EPS. On average, equities analysts anticipate that ARM Holdings PLC Sponsored ADR will post 0.9 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Rene A. Haas sold 7,986 shares of the stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $160.86, for a total transaction of $1,284,627.96. Following the completion of the sale, the chief executive officer owned 282,979 shares in the company, valued at approximately $45,520,001.94. This represents a 2.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Jason Child sold 21,280 shares of ARM stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $148.37, for a total value of $3,157,313.60. Following the completion of the transaction, the chief financial officer 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 53,133 shares of company stock valued at $8,288,586 in the last quarter.

Hedge Funds Weigh In On ARM

Institutional investors have recently bought and sold shares of the stock. Rockefeller Capital Management L.P. lifted its stake in ARM by 0.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 26,745 shares of the company’s stock valued at $2,923,000 after buying an additional 173 shares in the last quarter. Fund Advisors of America Inc FL purchased a new position in shares of ARM in the fourth quarter worth approximately $663,000. Hsbc Holdings PLC increased its position in shares of ARM by 25.2% in the fourth quarter. Hsbc Holdings PLC now owns 92,992 shares of the company’s stock worth $10,281,000 after acquiring an additional 18,717 shares in the last quarter. SHP Wealth Management acquired a new stake in shares of ARM during the fourth quarter valued at approximately $69,000. Finally, Employees Provident Fund Board acquired a new stake in shares of ARM during the fourth quarter valued at approximately $120,241,000. Hedge funds and other institutional investors 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.