ARM (NASDAQ:ARM) Reaches New 52-Week High – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s stock price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $428.60 and last traded at $420.6010, with a volume of 2670975 shares traded. The stock had previously closed at $412.55.

Analysts Set New Price Targets

Several research firms have recently issued reports on ARM. Wells Fargo & Company increased their price target on ARM from $255.00 to $410.00 and gave the stock an “overweight” rating in a research note on Monday, June 1st. Morgan Stanley reiterated an “equal weight” rating and issued a $150.00 price objective (up from $135.00) on shares of ARM in a report on Tuesday, April 7th. Susquehanna raised their price objective on shares of ARM from $170.00 to $210.00 and gave the company a “positive” rating in a research note on Thursday, April 16th. Sanford C. Bernstein set a $500.00 price objective on shares of ARM in a research note on Wednesday. Finally, Raymond James Financial reiterated an “outperform” rating on shares of ARM in a research note on Thursday, May 7th. Twenty equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $253.38.

ARM Price Performance

The stock has a market capitalization of $447.40 billion, a P/E ratio of 498.67, a PEG ratio of 14.39 and a beta of 3.78. The stock’s fifty day moving average is $259.44 and its two-hundred day moving average is $171.21.

ARM (NASDAQ:ARM) last issued its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share 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%. Analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Jason Child sold 31,920 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $226.54, for a total value of $7,231,156.80. Following the completion of the transaction, the chief financial officer owned 174,232 shares in the company, valued at $39,470,517.28. This trade represents a 15.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rene A. Haas sold 23,867 shares of the stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $161.17, for a total value of $3,846,644.39. Following the completion of the transaction, the chief executive officer owned 290,965 shares of the company’s stock, valued at $46,894,829.05. This trade represents a 7.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 301,338 shares of company stock worth $66,030,158 over the last three months.

Hedge Funds Weigh In On ARM

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Syntax Research Inc. acquired a new position in ARM in the 1st quarter worth approximately $30,000. Evelyn Partners Investment Management Services Ltd acquired a new position in ARM in the 1st quarter worth approximately $30,000. FWL Investment Management LLC acquired a new position in ARM in the 2nd quarter worth approximately $34,000. Cassaday & Co Wealth Management LLC acquired a new position in ARM in the 1st quarter worth approximately $40,000. Finally, Mcguire Capital Advisors Inc. acquired a new position in ARM in the 4th quarter worth approximately $30,000. Institutional investors and hedge funds own 7.53% of the company’s stock.

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.